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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

#211

Post by ethbro »

tunesmith wrote: post #153
opportune wrote: post #142

Earlier quoted context omitted.

I could be wrong but I don't think buying US treasuries would directly increase wealth inequality, since the money is being used to fund the US government. If the Fed bought other more private assets off the market (which I believe it does) then yes it could increase wealth inequality

Possibly, I may be confused between simply buying treasuries, and quantitative easing. Still learning!

To broadly simplify:

Buying treasuries = the Fed giving money to the US government

Quantitative easing = the Fed giving money to banks

In the case of the US, the entire game is also complicated by the fact that the US dollar has insinuated itself into the global economy. Most critically in oil markets.

Because of this, there are some things the Fed can do (mostly) without the consequences other countries would face.

Re: U.S. Designates China as Currency Manipulator

#212

Post by assblaster »

empath75 wrote: post #114
havetocharge wrote: post #78

Earlier quoted context omitted.

US decoupling itself from China would have an avalanche of effects, including huge inflation on most consumer goods, and outright product shortages. China is also a huge foreign debt holder, and if presumably no longer a buyer due to decoupling, will send US interest rates skyrocketing.

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

Russia is an irrelevant economic factor in the 21st century. Their export is fossil fuels, and that's about it.

Re: U.S. Designates China as Currency Manipulator

#213

Post by assblaster »

viscanti wrote: post #204
Aperocky wrote: post #185

Earlier quoted context omitted.

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?

> obviously America will be able to make these products American entrepreneurship doesn't mean all the manufacturing would take place in America. Entrepreneurial people are already moving to build more manufacturing in other countries where labor is less expensive and more plentiful than America. I don't think anyone was arguing that America would manufacture everything they currently import from China.

Even if the companies laterally move overseas manufacturing to other Asian countries, the end result is still China losing economic control over the United States.

Can't those other countries start behaving like China? Sure, but doubtful it would go anywhere.

Re: U.S. Designates China as Currency Manipulator

#214

Post by astrange »

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…

America’s cities are based on zoning laws designed to do racism in 1900, and the rest is based on the federal highway system. Not very free market either way.

Re: U.S. Designates China as Currency Manipulator

#215

Post by gumbo »

opportune wrote: post #142
tunesmith wrote: post #129

Earlier quoted context omitted.

I see. Printing money to buy new financial assets would also cause greater wealth inequality and populism, although maybe those are seen as benefits to the current administration.

I could be wrong but I don't think buying US treasuries would directly increase wealth inequality, since the money is being used to fund the US government. If the Fed bought other more private assets off the market (which I believe it does) then yes it could increase wealth inequality

This would increase wealth inequality because it’s mostly well-off Americans that own financial assets.

Look at the wealth inequality increase since 2008. It can mostly be attributed to federal reserve QE policy.

Re: U.S. Designates China as Currency Manipulator

#216

Post by flukus »

empath75 wrote: post #114
havetocharge wrote: post #78

Earlier quoted context omitted.

US decoupling itself from China would have an avalanche of effects, including huge inflation on most consumer goods, and outright product shortages. China is also a huge foreign debt holder, and if presumably no longer a buyer due to decoupling, will send US interest rates skyrocketing.

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

They're already aligning with Russia through SCO (https://en.wikipedia.org/wiki/Shanghai_Cooperation_Organisat...) and there's already been talk of merging with the CSTO (https://en.wikipedia.org/wiki/Collective_Security_Treaty_Org...) which would be a full on defensive alliance.

Re: U.S. Designates China as Currency Manipulator

#217

Post by Supermancho »

_ptgt wrote: post #178
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.

I mean they sorta already are? Xi Jinpeng was calling Vladimir Putin his "closest, most dearest friend" just a month or two ago. They already oppose the US (along with Russia) on every major international issue.

> Xi Jinpeng was calling Vladimir Putin his "closest, most dearest friend"

Why would anyone care what state heads say (this includes Trump and his comments about NK)? It means nothing and has no consequence...except maybe preventing fickle market fluctuation. You never hear "I hate this guy" because it's just pablum. Convince me otherwise.

I really don't understand why you would cite that as something meaningful.

Re: U.S. Designates China as Currency Manipulator

#218

Post by DogOnTheWeb »

umvi wrote: post #181
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

Interesting. Is any analysis of its performance available?

Re: U.S. Designates China as Currency Manipulator

#219

Post by [deleted] »

assblaster wrote: post #212
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 is an irrelevant economic factor in the 21st century. Their export is fossil fuels, and that's about it.

[deleted]

Re: U.S. Designates China as Currency Manipulator

#220

Post by blunte »

drawkbox wrote: post #86

As the reserve currency, the USD has some weight on it due to that position, can't just manipulate it like others can as easily except printing more [1]. Being the reserve currency, it was more fair when everyone was pegged to the dollar so at least manipulation was in check a bit. Both the unpegging and the free trade agreements put more pressure on the US for being a reserve currency. Ultimately, the USD is too hig…

What about quantitative easing via banking regulations?
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