China, in response to Trump’s threatened additional 10% tariffs on $300 billion of its exports, has weakened its currency, the yuan, to above 7 to the dollar ... see: CNBC Story. This retaliatory move proves President Trump is right when he says that China pays for these tariffs and not US companies.
But it also makes it more difficult for American farmers to sell produce into China ... somewhat offset by our recent farm subsidies ... and huge problems with Chinese hog production.
However, to this observer, it is conclusive proof that China is a currency manipulator ... which should remove all hope that its currency will replace the dollar as the basis of international trade ... something that Beijing has been angling for as a sign that it is the economic powerhouse it claims to be.
And, finally, it puts indirect pressure on the Fed for more rate cuts this year which should have the effect of weakening the dollar relative to all currencies ... and buoying up our economy.
Trump is playing a very complicated economic game ... with lots of dials to turn and levers to pull ... and he seems to be playing it well, IMHO.
In the movie "Being There," Chauncey Gardiner was deemed brilliant by supposedly smart people. I'm reminded of those people, reading some of these posts. It boggles the mind to think that you can ascribe a complex economic strategy to a hack TV reality show huckster, who doesn't read, who runs his petty thoughts through the garden hose of Tweets, who has bankrupted more than a few businesses, etc. He won't show his taxes because he is hiding something. Get woke, man. This guy is dangerous.
ReplyDeleteRather than attack his ideas, you (and quite a few others) attack the man. It really would be more productive to discuss where you think he is wrong (or right) than to pull a Joe Scarborough.
ReplyDeleteYou did the same with Clinton and Obama for years. Dow is down 700 points today. Not Winning!
ReplyDeleteSo when the market was up, he was winning?
ReplyDeleteSee my next blog, Obamanation, for detailed critique of the
O-man’s screw-ups.
Your so-called "detailed critique" is really just a compilation of slanders from right wing blogs. It would be more productive if you could discuss his ideas rather than pulling a Sean Hannity. BTW, that "Fake" stimulus actually sparked a bull market that kept roaring until Trump started with the Tariffs. And, if Obamacare is so bad, how come the GOP can't come up with something better? Also, I don't see any progress on N. Korea and Iran - both are doing just what they please, and laughing at Trump.
ReplyDeleteObama’s stimulus built no infrastructure although it did pump $840 billion into the economy ... mostly through public unions. Next came GM and Chrysler bailouts (GM is now run by its unions and Chrysler is now owned by Fiat). Next came a 3.7 trillion infusion of cash by the Fed ... along with zero interest rates. Obama also added $10 trillion to our debt.
ReplyDeleteYes, Trump is adding $3 trillion to our debt but the Fed has taken a half a trillion out of the money supply and has increased interest rates more than one percentage point. Trump, at the same time, is trying to fix all our unfair trade policies ignored by our last three presidents — a daunting task. Obama was floating down the economic stream while Trump is paddling hard up it ... yet the stock market is up overall almost 50%.
It is a story of numbers which too many know too little about ... or chose to ignore. Wake up,
And ... Obamacare has been substantially modified but not eliminated ... thanks to McCain. And finally, yes, NKorea and Iran are still thorns in our side ... but are no worse than when Trump took over. And they are both being pressured by the Orangeman. Will it work? I don’t know, but, at least Trump is trying. All Obama did was give Iran $152 billion and remove all sanctions. Did it step away from its terror agenda? No. NKorea is a puppet of China and is a pawn in the trade war. I would hope both will be resolved at the same time ... but rest assured, things will be resolved one way or another ... particularly if Trump is re-elected.
ReplyDeleteAs for "the worst President in our lifetime" I guess you don't remember George W. Bush. Since you seem to credit/blame everything that happens on the occupant of the White House, lets talk about 9/11, and the ensuing invasion of Iraq on scanty WMD evidence and committed us to an 18 year quagmire in Afghanistan as well that has hollowed-out our treasury and our military and killed a lot of US soldiers and local civilians. Bush left the office with a country deep in recession and debt. He did nothing about illegal immigration.
ReplyDeleteThat said, I would vote for him today if he was running against Trump.
BTW the 152 Million was unfreezing their own money. but you slyly imply that Obama "gave" them $ out of the US treasury. And that agreement was WORKING but then that idiot Trump screwed it up by cancelling the deal against the advice of real statesmen! Did you not know that, or did you choose to ignore it? Awaken, and be saved.
ReplyDeleteIt was $152 BILLION ... $150 billion of which were frozen Iranian assets as a result of the US embassy takeover under Carter. But much of this money had claims against it from suits won in the World Court and here. The rest was CASH delivered in pallets to the Tehran airport for the release of two US hostages. All sanctions were also lifted for an agreement were at least two military sites were off limits and Iran could still develop ICNMs and fund terrorism through the Middle East. Obama did not try to get it confirmed in the Senate because he knew he would lose. If this is “working” then so is Mayor De Blasio.
ReplyDelete