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U.S. branding of China as currency manipulator offers few new remedies


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43 minutes ago, Ramen087 said:

Trade war is a bit of a misnomer... In this instance... All both sides are really trying to do is cut the best deal in a potential future negotiation.  And these negotiations are never easy, unless one side simply gives in to the other.

no, except for the 5G thing it is otherwise all political on the USA side.  Trump timed this for 2020.   not China.

one example.  trade deficits are generally caused by running budget deficits.  Trump cut taxes.  if he were to 'get real' on our trade deficits he would raise taxes, and greatly reduce military spending and entitlements such as public sector and military pensions, Social Security and health care spending.  but we can't do that.  impossible.  not as impossible as ever doing what we agreed to in Paris back in 2015, not that impossible... but impossible.  notice one of those items is "The 3rd Rail of Amerikeen Politics".  not.  in the end at some point we will see high yield bonds crash.... then the genie is out of the bottle as Guy Adami on CNBC absolutely nailed it at the end of the Mark Yusko interview yesterday.    

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On 8/14/2019 at 9:24 AM, bristolboy said:

You should look up "opportunity cost"

And under Xi, it's more and the the privately owned corporations that are propping up the government owned sector of the economy. And that less productive government owned sector is appropriating a larger and larger share of the Chinese economy.Which brings to mind Stein's Law: If something cannot go on forever, it will stop

 

I don't need to look up opportunity cost.

 

According to Fortune Global 500, 98 companies in China or Hong Kong are featured and the top 12 are state owned. 20 are out and out private companies. Companies like Tencent and Alibaba don't even make the list. Again what you're saying is based on Western economics.

 

China's problem if it has one is that it doesn't have international brands of any weight thus far. Countering that, there's been a huge swing to the domestic market and that market is growing at a rate of knots as the middle class expands and it's still a long way from finite.

 

Bear in mind, China has no significant external debt to service.

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On 8/6/2019 at 12:01 PM, bristolboy said:

Because "trade wars are good and easy to win."

And if China has been manipulating its currency, it's to keep it overvalued. In fact, as numerous reports state, what China has done now is to let it drop. And what's bizarre is that on the one hand Trump supporters tout the tariffs' effectiveness, but on the other hand, they claim that China's currency should be valued higher. Doublethink much?

It's economics. The tariffs are the reason for the devaluation of the yuan

 

Devaluing the yuan isn't a new tactic for China to use to promote exports. It counters the cost of the tariffs They've done it before. 

It helps 'the economy". But, it's at the expense of the wage earners. If they continue to do it, the "trade war" will only be the cause of bigger problems for China.

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