71–80 of 356 posts
Earlier quoted context omitted.
If the yield curve inversion didn't convince you to pull out, just leave everything parked and stop looking at it.
The curve inversion forecasts the hit to be a year or so from now, so if you really believed in the yeild curves you'd still be in.
How is Currency Manipulator different than quantitative easing which everyone does?
QE indirectly affects the price of your currency by manipulating the price of your bonds.
It ends with China being cut off from SWIFT and correspondent banking. That would probably make them re-think their approach to economic warfare.
It ends with China being cut off from SWIFT and correspondent banking. That would probably make them re-think their approach to economic warfare.
That would also do crippling damage to US and other foreign companies doing business with China. Even the current tariffs and counter-tariffs have cost US companies many billions. Qualcomm alone is estimated to have lost about a billion dollars in sales.
Personally, I rather Qualcomm goes bankrupt entirely than see Chinese global hegemony.
Yes considering the US prints hand over fists amounts of money to deal with its economic woes, it's sort of a joke where the emperor wears no clothes, but no one says anything because he's the emperor. https://www.investopedia.com/articles/investing/090915/quant... > "In theory, currency manipulation and a monetary policy like quantitative easing aren't the same thing. One is interest rate policy based and the other…
Now, if the US were to print a quadrillion USD, and then flood the Yuan-USD market with printed USDs...
Every country would prefer to devalue their currency relative to others in order to increase their trade surplus (or cut their deficit). Mathematically they cannot all succeed, so it ends up being a slow motion race to the bottom.
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...
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 bein…
The EU it's not really in the mood of taking short term hits unless is threatened(i.e with tariffs).
Not to mention that it supports Trump stance on China as it suffers the same unfair treatment(i.e IP theft, closed markets, dumping etc). If US gets a good deal I'm pretty sure EU will ask and get a very similar one.
So, really, is there any doubt that this is true? China's currency exchange rate has been abnormally stable for a long time, and the Obama, Bush, Clinton, Bush, and Reagan administrations all knew it was the result of currency manipuliation. They just found it politically unpalatable to admit it out loud. The real question would be, why is the U.S. finally admitting this out loud? 1) amping up a trade war 2) decoupli…
Yes considering the US prints hand over fists amounts of money to deal with its economic woes, it's sort of a joke where the emperor wears no clothes, but no one says anything because he's the emperor. https://www.investopedia.com/articles/investing/090915/quant... > "In theory, currency manipulation and a monetary policy like quantitative easing aren't the same thing. One is interest rate policy based and the other…
Whether this is good or bad for the US economy is debatable (and unclear), but it's not really a recipe for currency manipulation at all. I have no idea what you're talking about.
Yes considering the US prints hand over fists amounts of money to deal with its economic woes, it's sort of a joke where the emperor wears no clothes, but no one says anything because he's the emperor. https://www.investopedia.com/articles/investing/090915/quant... > "In theory, currency manipulation and a monetary policy like quantitative easing aren't the same thing. One is interest rate policy based and the other…
That's the funny part to me. Currencies don't exist in a vacuum. There's no way NOT to manipulate your own currency. Even in countries that don't directly control monetary policy can still change the value of their currencies indirectly (via taxes for example).
Managing a currency through the control of interest rates, taxes, employment etc. are the legal ways of the game to manipulate your currency.
Centralized clandestine devaluation of ones currency while government sponsored companies buy real estate worth trillions all over the world, as well as commodities and rare resources, not to mention the jobs it's created and among local populations and the access to foreign citizens data, is an outright slap in the face to any sort of partnership.