Posted on 08/15/2019 6:38:18 AM PDT by SeekAndFind
In the hours before American equity markets open for trading, China sent a huge sell signal to the traders on Wall Street. Bloomberg reports:
China called planned U.S. tariffs on an additional $300 billion in Chinese goods a violation of accords reached by Presidents Donald Trump and Xi Jinping, signaling an American move earlier this week to delay some of those levies was not enough to stave off retaliation.
The effects already are manifest:
European stocks declined and U.S. equity futures fell. The Stoxx Europe 600 index moved lower while the three main American equity contracts dropped.
President Trump has already stated the obvious: China wants him to lose his re-election bid so that a “stiff” from the Democrats will replace him and be a pushover, letting China return to the good old days of rigging trade, deindustrializing the USA, and preparing to replace us a the global hegemon. Frontrunner, Joe Biden, whose son has prospered thanks to Chinese investment in his hedge fund, has already signaled his passivity:
“China is going to eat our lunch? Come on, man...they can’t even figure out how to deal with the fact that they have this great division between the China Sea and the mountains in the east, I mean in the west.”
Biden continued "they can’t figure out how they’re going to deal with the corruption that exists within the system. I mean, you know, they’re not bad folks, folks. But guess what, they’re not, they’re not competition for us.”
(Excerpt) Read more at americanthinker.com ...
And the crew on Mornings with Maria, minus Maria, couldn’t be more excited.
Sadly for them, Walmart came in with a strong earnings report. A wet blanket on their party.
Dagen McDowell? Really? C’mon FBN.
Why has the media chosen to ignore that interest rates inverted on March 22nd of this year and the stock market has hit all-time highs since then, and the U.S economy and especially the job market have done very well since then.
Most journalists are not really journalists investigating and reporting. They are campaigning for Democrats with talking points. The media is more dangerous to our freedom and prosperity every day.
The truth is that the yield curve is inverted for one reason only. The fed funds rate is over 2% for overnight money, so why the heck would institutional investors buy three month money at below the ten year bond yield of 1.59% when they can get over 2% for overnight money? It is time that Fed chairman Jerome Powell aligned its overnight rate with the market. Then the yield curve will not be inverted.
The Federal Reserve forgot that their job was to protect against inflation — which is low. It is not to slow down the economy because statistically it looks great. As long as inflation is low, they should let the market soar. Efficiency, productivity, low taxes and fewer regulations explain why our economy is doing much better than most of the World.
The democrats are obviously involved as well. Highlighting the facts in this article should be a key focus of the 2020 campaign.
” Biden continued “they can’t figure out how they’re going to deal with the corruption that exists within the system. I mean, you know, they’re not bad folks, folks. But guess what, they’re not, they’re not competition for us.””
A complete dufas like his father.
The Fed is not tanking the stock market. Bond and bank account interest rates can’t get much lower — they are are low enough to be negative after inflation. Savers are getting killed by low rates. The Democrats are killing the economy with socialism and junk science environmentalism, and Trump responds by going after the Fed and the Chinese.
The Fed is not tanking the stock market. Bond and bank account interest rates can’t get much lower — they are are low enough to be negative after inflation.
_______________________________________________________
When the fed raises rates it has a huge effect on the entire market. It is much worse than just overnight deposits and rates.
When savers can’t make money in the bond market they naturally go to stocks and vice-versa. The economy is doing better than it has for over, well over 50 years, it could do better if it were given more freedom.
The problem with capitalism is that it tends to boom and bust. I think, hope the Fed is doing what it is doing because it is trying to smooth out the boom/bust cycle by holding down the boom to reduce the bust. As long as there is money in pockets there will be demand and demand is what runs Capitalism. As long as there is demand someone will be willing to support it by supplying what is wanted. Money then flows to people who are willing to spend the money on ways to supply more goods to the economy. This satisfies demand and holds down prices because of competition for satisfying the demand. It isn’t rocket science.
When the government gets involved and gives incentives for suppliers of demanded goods to produce in other countries it takes some of the capital out of the American market. Trade agreements have done that with China and Mexico. China has been built on the back of American capital. I would say the same thing in Mexico but the money has not been treated well there. Much of our capital has gone to graft which takes capital from the suppliers on both sides of the border. Reducing capital in the market decreases production which increases prices and increases demand making the rich richer and the poor poorer. The current administration led by campaign promises of DJT during the election are removing some of the obstacles to production and removing the advantages to producing off shore. The importers from China who have been making a killing on off shore production are livid and will do all in their power to return to the old ways. It is a persuasive argument to allow China and Mexico to produce it cheaper than we can. The problem is the reason Mexico and China can do this so well is because of the support we are willing to give those countries who flaunt our regulations and environmental standards to undercut our producers.
Traditionally and even still today the American factory is the most productive worker for unit of money spent on them in the world. That means if the laws were the same in Mexico, China and the US it would be cheaper to produce in the US. We should all support “Made In America”, it is good for all of us.
Tanked my 401(k) fund too. Anyone else affected?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.