61–70 of 356 posts
Earlier quoted context omitted.
No. It's caused by China's central bank printing currency in response to tariffs, essentially using currency as a weapon.
OK. tariffs => printing money, so tariff is the root cause, no?
Protectionism, IP theft, banning or heavily restricting US tech firms from operating in (aka exporting to) China, the list goes on.
Stock futures down another 2%. Amazing how much money one can lose in a matter of days. Stomach churning.
If the yield curve inversion didn't convince you to pull out, just leave everything parked and stop looking at it.
China 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.
It ends with China being cut off from SWIFT and correspondent banking. That would probably make them re-think their approach to economic warfare.
Considering how much stuff they produce I don't think that would end with them rethinking anything but rather establishing a different financial order with anyone who was willing to trade with them. And I think a lot of Europe and Asia would be on board for steep discounts.
Who knows how this all will play out, won't be pretty either way.
I bet this is all empty brinkmanship.
It ends with China being cut off from SWIFT and correspondent banking. That would probably make them re-think their approach to economic warfare.
The real question would be, why is the U.S. finally admitting this out loud? 1) amping up a trade war 2) decoupling U.S. economy from China 3) trying to leverage China into doing something differently, perhaps regarding North Korea
Some of these, of course, would interfere with others, for example you can't use it as leverage in #3 if China thinks you'll keep pursuing it anyway no matter what, due to #1 or #2.
Earlier quoted context omitted.
This means you have about a million dollars in stock investments alone, which you put you in a different class.
That would keep me calm! I'm pleased to report though that I lost nothing, since that's about how much I have.
I left a job when I was 28 with a depressing $21k in 401k. After sitting there for 16 years, it's now... big enough where it lost almost that much this last week.
Compounding... really... works...
China 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.
And more weapons to Taiwan because of that? What for?
Maybe I'm being cynic but I don't see the needle moving here.
This is just nonsense. All central banks "manipulate" their currencies. The FED did that by printing trillions in QE. The FED did that in 1973 when they went off the gold standard. The FED did that in 1935 when they changed the value of the dollar. Funnily enough, the only way other major currencies can stop depreciation is by having more dollars. The way to do that would be more exports. But trade-warrer-in-chief ju…
"currency manipulator" is a legal designation, not just an insult. It has 3 requirements (someone linked to the Wiki in another thread).
I'm pretty sure Trump wants to weaken the USD to increase US manufacturing and make our exports more competitive with the world, but I don't see that he has a plan to do it. He seems to be grabbing for any kind of leverage he can get to bully other economies into making promises to increase their imports of US exports.
It's just giving false hope to US industries which no longer have a competitive advantage in the world market... long enough to last through the next presidential election.