Posted on 08/05/2019 9:48:58 AM PDT by SeekAndFind
The decline of China’s yuan on Monday to its lowest level in 11 years against the US dollar could continue into 2020 amid the apparent shift in its policy stance by the Chinese authorities, who are showing increasing reluctance to provide concessions to resolve its trade war with the United States.
The Chinese currency’s drop has also rattled the currency market, sending 11 regional currencies lower. The yuan slid 1.3 per cent to 7.0298 against the dollar on Monday in response to President Donald Trump’s threat to impose a new 10 per cent tariff on the US$300 billion of Chinese imports not yet subject to sanctions, effective from September 1, raising risks to the mainland’s slowing economy. China has vowed to retaliate if the US went ahead with the new tariffs.
The break in the yuan below the key threshold of 7.0 to the US dollar, analysts said, was likely to be a deliberate decision made by the People’s Bank of China (PBOC), China’s central bank, which has now decided that the currency can be part of its arsenal in fighting the trade war.
It was also a reversal from Chinese policymakers’ steadfast defence of the 7.0 level in recent years, including last year in the early months of the trade war and in 2016 after the stock market rout and sharp capital outflows in 2015. Those defences had also been a message of good faith to the Americans that Beijing had no intent to “weaponise” the exchange rate of the yuan, also known as the renminbi (RMB).
In a tweet on Monday, Trump hit out at the yuan’s decline, calling it “currency manipulation”. “This is a major violation which will greatly weaken China over time!” he tweeted.
(Excerpt) Read more at scmp.com ...
It is going to cost them more to buy U.S. politicians.
Nixon played the China card. Why can’t Trump play the Vietnam card? Seems to me that we have a trade partner that is willing and able to step into China’s shoes but under terms more favorable to the U.S.
10% can QUICKLY become 25% which can QUICKLY become 50% which can QUICKLY become 75%. LET IT BE SO. American companies and importers, remember the old maxim — YOU SNOOZE, YOU LOSE!
ChiComs all-in on creepy senile Joe Biden in 2020.
Close the ports.
Chinese thugs have never given a damn about their people starving to death. North Korea’s no different... As long as their effing elites are doing well they don’t care.
It’s gonna be the same here if democrats win.
You recently said: China has not made good on a promise to buy American agricultural goods in large quantities.
And also:
Additionally, my friend President Xi said that he would stop the sale of Fentanyl to the United States – this never happened, and many Americans continue to die! Trade talks are continuing.
So it is time to put the Mexican Squeeze on the Chicoms.
Recall the 26 people in Mexico that had their assets frozen, and using your EO of December 2017.
The conversation would go something like this:
Trump negotiator: You are delaying and prevaricating on your end of the agreement:
Chicoms:....more prevaricating
Trump Negotiator: So as a gesture of your sincerity here is a list of 26 people that are supplying Fentanyl to the USA and we would like you to freeze their assets within 24 hours
Chicoms:...more prevaricating
Trump negotiator: Then we have a similar list of 260 people and we we will freeze their assets world wide...maybe your name is on it....do you feel lucky punk?
Chicom negotiator: Yes Sir...please do it....its been so ordered straight away.
People have complained about China valuing their currency artificially low for a very long time. The only question is this: How low can you go?
And are we not trying to reduce our national debt by doing the same thing? Isn’t that the real reason behind the push for a high minimum wage - to monetize our debt?
Of course, there is a price to be paid for doing that, as Chinese citizens will discover.
This can’t be the free traitors and the anti-Trump media told us that Americans would be paying the tariffs.
They didn’t say China would devalue their currency to lower their product prices in response to the tariffs.
So wait, you mean that exchange rates adjust to compensate for tariff increases? That’s amazing, no one predicted this. Except for everyone.
So Trump’s tariffs resulted in additional revenue to the US treasury paid for by the Chinese with no negative effect on US consumers, I’d call that a win.
Tax hikes are a win?
Oh wait, you said the Chinese are paying the tariffs. I missed the joke. Good sarcasm.
Who better to pay taxes than the buyers of foreign made goods? Do you prefer income taxes? This the original plan for the USA 1789 to 1913.
Stock market is sure loving the huge stimulus to the US economy you keep yammering about.
I do not see how this is bad news. Raise tariffs even more and force them to even dump their currency. That will do a hit on their military and revenues while we get the cheapest deals on Chinese goods ever, at the same time funding our national debt with tariffs.
Maybe Vietnam or Mexico will not be able to export as much, who gives...
Yammering? LOL! Telling the truth more like it.
We need to import better economists. Ours suck shit.
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.