Stock futures down another 2%.
Amazing how much money one can lose in a matter of days. Stomach churning.
U.S. Designates China as Currency Manipulator
21–30 of 356 posts
Re: U.S. Designates China as Currency Manipulator
#22Isn't Chinese Yuan depreciation caused by Trump's relentless tariff, just like Mexican Peso's depreciation when Trump threatened tariff early this year?
I'm confused who is manipulating the market & currency.
Re: U.S. Designates China as Currency Manipulator
#23The best part of this is that they are being called a manipulator for not shoring up their currency artificially.
It's manipulation. The RMB has been artificially fixed for decades for targetted economic/political reasons. It's being adjusted now not so that it can seek to a market value but to target another specific value for political/economic reasons. No one argues this. The PRC manipulates it's currency. It always has. It certainly doesn't seem likely to stop. That said: this is what trade wars look like, folks. If we didn'…
China, as a government, is a problem that needed to be addressed. I don't understand why China was even an option that the US took.
Re: U.S. Designates China as Currency Manipulator
#24The best part of this is that they are being called a manipulator for not shoring up their currency artificially.
That's reversed. They artificially weaken their currency, and recently weakened it even more. Your sentence assumes their currency should be low, and they raise it, but evidence is the other way around.
No, it’s the reverse of that: they’ve been artificially strengthening their currency, and are simply slipping to a more reasonable market based value ATM. The CNH exchange provides evidence that the currency should be weaker, it has been that way for a very long time!
Re: U.S. Designates China as Currency Manipulator
#25China can outlast the US on this one. Next up, let's crash the price of oil and flip off the Iran sanctions: https://www.cnbc.com/2019/08/05/brent-and-wti-price-could-cr...
China would have a lot more room to move were the Hong Kong protests were not going on. The big problem they face is putting down the protests violently could lead towards pronouncements of them violating the agreement for it being held over. Which will lead toward countries people openly selling heavy weapons to Taiwan and maybe even building bases.
Re: U.S. Designates China as Currency Manipulator
#26The best part of this is that they are being called a manipulator for not shoring up their currency artificially.
That's reversed. They artificially weaken their currency, and recently weakened it even more. Your sentence assumes their currency should be low, and they raise it, but evidence is the other way around.
Not lately. They’ve been propping it up.
https://www.bloomberg.com/news/articles/2019-08-05/u-s-treas...
Check the June quote from Mnuchin where he promises to do this if they stop propping their currency up.
Re: U.S. Designates China as Currency Manipulator
#27Isn't Chinese Yuan depreciation caused by Trump's relentless tariff, just like Mexican Peso's depreciation when Trump threatened tariff early this year? I'm confused who is manipulating the market & currency.
No. It's caused by China's central bank printing currency in response to tariffs, essentially using currency as a weapon.
Re: U.S. Designates China as Currency Manipulator
#28China can outlast the US on this one. Next up, let's crash the price of oil and flip off the Iran sanctions: https://www.cnbc.com/2019/08/05/brent-and-wti-price-could-cr...
The entire European Union along with China ignoring US sanctions will make the US re-evaluate its hegemonic ideology and interests
To get to a more collaborative world, this would have to happen. The risk being that it could lead to a less collaborative world if the US is seen as a toothless world police.
With the EU coming into its own and willing to take a near term economic hit to advance its goals, and China being forced to consider taking an economic hit to maintain its goals, it seems like this is possible now and into 2020.
Re: U.S. Designates China as Currency Manipulator
#29China can outlast the US on this one. Next up, let's crash the price of oil and flip off the Iran sanctions: https://www.cnbc.com/2019/08/05/brent-and-wti-price-could-cr...
I think the trade balance is too skewed in favor of the US. It will be painful for both sides, but we have a lot more goods we can tariff than they can.
Of course, they could also dump their US treasuries, but it would be a pyrrhic victory for China. They would hurt themselves too much in the process.
Re: U.S. Designates China as Currency Manipulator
#30Earlier quoted context omitted.
It's manipulation. The RMB has been artificially fixed for decades for targetted economic/political reasons. It's being adjusted now not so that it can seek to a market value but to target another specific value for political/economic reasons. No one argues this. The PRC manipulates it's currency. It always has. It certainly doesn't seem likely to stop. That said: this is what trade wars look like, folks. If we didn'…
If the RMB was left to find a market value, it would fall way below 7 to probably 7.5 or even 8 something. Yes, it is being manipulated, but in the other way that Trump says it is. The Chinese are simply running out of the dollars needed to keep manipulating it so that it stays stronger than 7! The simple irony is that if the Chinese were just to give up manipulating the RMB all together, Trump would be even more ang…
There is a certain criteria, and neither Swiss, Koreans, or Japanese meet that criteria.