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U.S. Designates China as Currency Manipulator

wsj.com

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Re: U.S. Designates China as Currency Manipulator

#181

Post by umvi »

markvdb wrote: post #107

3% stock market movements set in motion by the US president alone. "Great" insider trading potential. Have someone set up the right derivatives strategy and bam: instant millions. I couldn't convince myself to immediately write that idea off as utter nonsense. Anyone with more relevant financial experience? Can you reassure me this would be difficult to pull off? Or would you have to confirm this would be difficult t…

There's a GitHub project called trump2cash[1] or something that already does this

[1] https://github.com/maxbbraun/trump2cash

Re: U.S. Designates China as Currency Manipulator

#183

Post by BowBun »

NicoJuicy wrote: post #169

China has started invading Europe through Tsjechie also. Just read a disturbing dutch article and Europe should join the US. I wasn't sure before, but I'm sure now. Here's a small report of the EU : https://www.europarl.europa.eu/thinktank/en/document.html?re... Yeah, it's disturbing and it doesn't even contain all the info...

Seems like FUD without a credible source, can you link something? Plenty of dutch readers on HN.

The article linked is referencing the unfavorable economic terms of China's Silk Road project towards developing nations' economies, which has been written about and is plenty concerning on its own.

Re: U.S. Designates China as Currency Manipulator

#184

Post by NicoJuicy »

thefounder wrote: post #77
rolltiide wrote: post #28

Earlier quoted context omitted.

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…

EU has its own issues such as Brexit, lack of fiscal union, Greece, Italy debt, unemployment, slow growth, no immigration policy, no common foreign policy etc. When you talk about EU you really talk about 27 member states not some kind of United States of Europe. 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 a…

There is also the internal market and that China is threatening it's diplomacy with some eastern countries bribery.

Re: U.S. Designates China as Currency Manipulator

#185

Post by Aperocky »

seibelj wrote: post #176
chiefalchemist wrote: post #148

Earlier quoted context omitted.

> "...but only one of them would see its financial system collapse." Unless that is an absolute certainty then and this is a game of high stakes chicken, then I would say the USA has more to lose. While China has certainly developed in the last couple decades they are still relatively used to living with less. On the other hand, Ameicans lose their minds when Facebook goes down for an hour. That is, there would be be…

America has free markets and a decentralized, bottom-up system that results in entrepreneurs and private entities deciding how to allocate capital. There may be temporary pain but wherever there is opportunity an entrepreneur will step in. China has zombie enterprises, their financial statements are lies, and cities built by bureaucratic maneuvering over market need. I will always bet on the American private sector o…

And of course all the product you bought that were made in China are lies, they don't exist at all. And obviously America will be able to make these products despite having about 0 unemployment, but hey, magic happens here amiright?

Re: U.S. Designates China as Currency Manipulator

#186

Post by NicoJuicy »

wrong_variable wrote: post #177
systematical wrote: post #115

Wouldn't a more effective US strategy against China been to get the EU, Japan, and South Korea in on the tarrifs as well? Might as well throw in Canada and Mexico as well on account of being NAFTA partners. That would account for all of Chinas major trading partners. Japan and SK might have been difficult, but a combined North America + EU might have done the trick. Maybe the Trump Administration tried this, but I fi…

[flagged]

Europe has more issues with China than the US... :(

But internal diplomacy...

Re: U.S. Designates China as Currency Manipulator

#187

Post by im3w1l »

drtillberg wrote: post #159
wrong_variable wrote: post #106

Earlier quoted context omitted.

Products don't grow on trees. If the fed buys every USD bond in existence ( aka monetize the debt ) - it would lead to a good amount of inflation.

Yes, but the pressure to pay off those bonds would be deflationary, so in order to sustain the inflation next the Fed would have to do something even more extraordinary! AFAIK this policy pathway leads ultimately to bond forgivenesses (or funky bankruptcies) that eliminate deflationary pressure but may well have the unpleasant side effect of radically adjusting the fiat currency system.

> Pay off those bonds

I don't think that would happen. They will just borrow ever more. Which if debt increases slowly enough, is sustainable but causes inflation.

Re: U.S. Designates China as Currency Manipulator

#188

Post by astronautjones »

Jorge1o1 wrote: post #29
joezydeco wrote: post #8

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...

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.

they can sell off more of the real estate they hoard and substantially effect that market again

Re: U.S. Designates China as Currency Manipulator

#189

Post by chrischen »

thrwayxyz wrote: post #171
empath75 wrote: post #114

Earlier quoted context omitted.

The us decoupling itself from China would be an unmitigated disaster for the us as China would align itself with Russia.

Russia has the population of Nigeria and the GDP of Italy. The cold war ended a while ago. Worrying about them today makes about as much sense as worrying about Autria in 1930 because Austrohungaria used to be a world power.

They have a large nuclear arsenal.

Re: U.S. Designates China as Currency Manipulator

#190

Post by zwkrt »

_ptgt wrote: post #160

One thing that I think is getting lost in this discussion is the role of intent on currency manipulation. Switzerland has the strongest currency in the world due to the country's reputation for governmental and financial stability. This makes Swiss labor extremely expensive for reasons mostly outside of their control, and the Swiss government has tried (and largely failed) to remedy this. Technically, this is devalua…

Monetary policy has many, unrelated effects on the economy. Even if China were able to point to obvious, incontrovertible humanitarian reasons for its currency decision I’m sure the US would still be unkind. It seems that at the end of the day only realpolitik prevails.
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