Fairly Wacky Ideas.
"That’s a nuclear option -- it’s unlikely but not impossible".
"[It] sounds quite radical and will have profound and unpredictable implications not only for China’s banks, but also the US banks and the global financial market".
"It’s a fairly wacky idea".
Those soundbites (from economists and traders) give you the flavor of the market's reaction to news that aides and advisers to Mike Pompeo have floated the idea of undermining the Hong Kong dollar peg as a way of punishing China fo
Maybe the Chinese are getting the idea that they’ve beaten Trump on every issue and that whatever his administration tries hurts the US more. One may not like China on human rights, but they have created tne economic miracle of the last 35 years from the cultural revolution to a middle class of 400 million. And they did it all with only the promise of the largest consumer market. Amazing when you realize that when they began they had the people, but the people had no money. Wouldn’t surprise me if Xi would love to see Trump get 4 more years.
As with most wars, the next war will be about economic gain.
We are either already in or escalating toward WWIII. This war will be unnoticeable to most for a long period of time due to lack of the historical benchmark ( killing each other).
The long term effects will be very significant.
Too bad we do not have a leader or allies.
Agree that China would be very happy with Trump remaining in office. He’s compromised, corrupt, and incompetent – a veritable wet dream for China and authoritarians everywhere.
There is no chance of this wacky idea happening anytime soon given that its an election year but that does not mean it cannot be used in a campaign given that most Americans distrust China. To weaponize the dollar funding lever is economic suicide.
Never say ‘Never’ as they say. Given what we’ve all witnessed this year, let alone since the 2016 election results, a third Black Swan event would make Omne Trium Perfectum in 2020 almost poetic.
No one does capitalism like the communists…
I does seem like Vietnam has gotten pretty good at it as well. Look at the labels in your clothes and shoes.