politics trade

‘Tariff Man’ Unleashes Wild China Tweetstorm, Deletes It All, Tweets It Again

"Just sit back and watch!"

"Just sit back and watch!"
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14 comments on “‘Tariff Man’ Unleashes Wild China Tweetstorm, Deletes It All, Tweets It Again

  1. Lance Manly

    Not to mention tariffs are, at least initially, inflationary. You would think that a stable genius that wants a rate cut would know that.

  2. Anonymous

    “mischaracterizing”. He’s just plain lying!

  3. “America borrows from China”

    That is not accurate. The US trades dollars for goods as per the current account, and China keeps those dollars in their Treasury account at the Fed. If the US was borrowing from China (instead of trading dollars for goods and services), it would be taking a loan in Yuan…similar to Argentina taking an IMF loan in dollars.

    China won’t repatriate all of the funds it holds in their Treasury account because the conversion to Yuan would cause the Yuan to rise against the dollar and make their exports less competitive. The US can access all kinds of stuff by creating the dollars at almost no cost. The higher the value of the dollar, the more stuff they can buy. They are not borrowing dollars from China. China is leaving the dollars they earned in the US.

    • Anonymous

      “They are not borrowing dollars from China. China is leaving the dollars they earned in the US.”

      In what form are they “leaving the dollars” in the US? In treasuries right? That’s exactly what the article means, that is the loan, that is America borrowing from China. Second, Who do you assume that China after selling their treasuries will convert their USD to RMB? They can convert them to EUR YEN to Gold to whatever else.

    • lol. no. America is literally borrowing from China, A.I. What do you think China’s FX reserves consist of? China owns $1.13 trillion of US debt across bills, notes and bonds.

  4. Not to be redundant but all this is playing out in a Geopolitical format (chessboard).. The belt and road initiative and before that The BRICS concept were all attempts to break the stranglehold of the US on the whole of the worlds financial mechanism dictated by the Reserve currency status of the Dollar. . The goal is an alternative system whereby this sanctions and tariff related phenomenon is not the primary tool of International Politics and Existential Crisis for Random selected Nations… Short term pain and long term gain will inevitably make it’s way onto the playing field to reshuffle the entire Deck of cards. I do agree that Trump and his base are a misguided lot facilitated by the media and the very system it damages , on purpose I suppose. Look and see the sudden attempts at the Political destabilization of the worlds primary energy producers all in consortium and tell yourself this is going unnoticed by other than our mainstream media…

    • Harvey Darrow Cotton

      I don’t know. As long as the United States has the most liquid financial markets in the world, Treasuries are the default ‘risk-free’ asset, oil transactions are denominated in dollars, dollars are the premier global reserve currency, and the American government dominates S.W.I.F.T., China has a long belt and road to hoe.

      • I agree with that Harvey, and the short term pain will at some time try to hatch the long term gain part.. They are looking 20 or so years ahead… If a war is averted , then the mechanism to alter the Financial playing field gets to be 20 years or more. It is a do or die situation to maintain control thus the attempt at monopolization of energy resources you are currently seeing. All growth is temporary say the Historians….

  5. After the “truth” finally came out about the state of negotiations, the expectations for what is possible from a trade deal have to be scaled WAAAAAYYY back.

    • Yeah you would have to think so ….but look at the market front run the next delectable tidbit of news .. The can just got kicked down the road…again.. Trump Put they are calling it !!

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