Skip to comments.Expect Trump to double down on the trade war with China (Short video, and article from Asia Times)
Posted on 11/24/2018 4:00:34 PM PST by cba123
There are two links for this story. I started linking to the short video which I originally watched.
It is from Asia Times. Basically it is almost an advertisement for the article. Runs about a minute and a half, although it mentions the major points from the article.
Then there is an actual article in the Asia Times. I will also include a link to that article, for those who want to read the full thing.
(Excerpt) Read more at youtube.com ...
One possibility I had not ever seen mentioned before, was listed as a possible in the future in this article:
From the article:
"Xi's government could begin imposing exit taxes on US goods made in China."
This is a pretty long article, although part of the length seems to be the number of comments which follow.
You can read it if you want. Or watch the video. Or both. Or neither.
USA Vs. China is an unfair trade fight.
China exports 4 times more to USA than USA exports to China.
Any trade war hurts China 4 times more. This is not complicated.
“China exports 4 times more to USA than USA exports to China.
Any trade war hurts China 4 times more. This is not complicated.”
Why then are indexes like the DJIA and Russel 2000 getting hammered every time the trade rhetoric gets intense; when Washington talks tough?
Everyone from Bloomberg to CNBC to Steve Forbes says that the reason the markets are taking it on the chin (so to speak) is the trade issues. Not the Fed. Not interest rates. Not the real economy.
If the way these bilateral trade issues are being addressed is such a clear win for the USA, it would be reflected accordingly in the stock market. It clearly is not.
Unless, of course, people like Steve Forbes have it wrong.
Is there an explanation for this?
It’s even simpler than that. The total US exports to china are LESS THAN 1% of US GDP.
Stock markets: The AVERAGE gain by SP500 over 50 years is just under 8%. Since the FED began ZIRP (zero interest rate policy) during Obama admin, SPX had increased from a low of 700 to 2950 recently in 9 years. That represents 16% increase annually. But corporate earnings barely doubled in 9 years. This is UNSUSTAINABLE!!!
Markets are just looking for any excuse to drop.
Didn’t Steve Forbes sell his magazine, to the Chinese?
I guess you’re implying bias.
I am implying nothing.
Just stating a fact.
Forbes sold his magazine to a Hong Kong company, several years ago.
There are a bunch of monied Americans, who have been selling out to China for now, an entire generation.
Forbes is one.
In my humble opinion.
The fact that China is buying out so many monied American owners, and has been for so long, is a huge problem, in my view.
Just my opinion.
Maybe, but my question was based upon what people on bloomberg TV, CNBC and even Steve Forbes are saying.
I am aware of the overvaluation. And QT.
My point is that apparently either the U.S. doesn’t benefit that much from putting the hammer down on China, or the aforementioned financial people are wrong.
Yes and after the sale the printrd magazine in the USA has gone to hell. Forbes is wortheless now.
Steve Forbes is still there buthis columns are the same old outdated crap.
My subscripton runs for several months, but no more. Forbes is decidely Nevertrump in demeanor
“The fact that China is buying out so many monied American owners, and has been for so long, is a huge problem, in my view.”
I don’t disagree.
Just wondering why the U.S. stock markets sell off whenever, for example VP Pence, takes a hard line with Xi. I am not saying it’s not justified, just it would seem that market participants would cheer that kind of determination by buying (or at least holding on), not selling.
China also sells off. A lot. More than America has been.
I think maybe it is money, getting out of the market until they see what direction things will go, then it will re-enter the market in whichever direction, they see things going for the future.
Just my opinion.
That may well be correct.
Buy why is it that so many others opine differently? Do they not know what they’re talking about? Are they obligated to say that because someone in China bought them out? Would the networks, who are largely anti-Trump force these financial people to compromise their reputations and say things that are not quite true and at odds with their personal opinion?
I suppose there is no easy or ready answer.
There have been a (lot) of Americans, busy selling out to China. In my opinion. The media is all in sell-out mode. Our businesses themselves are selling out. Everyone.
Forever. Or at least, for the last generation.
This has been shrinking the American economy. And growing China’s.
Trump is the first President, who seems to be on America’s side.
It is so relieving.
Again, I do not disagree.
Do you think it’s possible he’s moving too fast, or going about it the wrong way? The stock market, where opinions are backed by real money, seems to be saying just that.
You seem unwilling to entertain the thought of President Trump and his trade negotiating team possibly making some miscalculations. International trade and international finance are mighty difficult waters to navigate.
Every talking head pontificating on business TV programs usually has a pretty good sized stock portfolio. Steve Forbes must own a ton of stocks. These people don’t care about common middle class folks. They do not want anything done to hurt their portfolio of stocks. Tariffs are certainly a short term pain, but long term yuge gain.
The TV talking heads will attack anything and everything which hurts their portfolio’s. It is the same thing with FED and interest rates. The ZIRP has caused tremendous overvaluation of hard assets and stocks and bonds. It is only trying to postpone the economic cycle. Except they are making the booms and busts magnified.
So the people you refer to cannot, or will not, be objective because they very probably own quite a bit of stock?
Should I stop listening to them?
I do not believe Trump has acted anywhere nearly, fast enough.
Also, if these people only want to prevent their shares from declining, then by definition they are not the ones selling. If anything they are keeping the averages from even steeper loses.
So the question remains - who is selling and why? Back to square one: if tough trade talks are a benefit to our economy, why would stocks take a dive when the trade talks heat up/
Looks like these are unanswerable. At least for now.
90% of stocks are owned by 10% of people. Those are the ones selling and buying and computer trading. Not the 90% working people with their 401-k’s. And try to find out the turnover at mutual funds. It is huge. They hide it as best as they can, but by law that data is public.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.