US trade war with China

[NewCreation435]

Washington D.C. (CNN Business)"The Trump administration on Monday designated China a "currency manipulator," after the country's central bank allowed its currency to weaken amid the ongoing trade dispute.
The move comes hours after Trump accused Beijing of depreciating its currency on Twitter, adding later that such measures have been used to "steal our business and factories, hurt our jobs, depress our workers' wages and harm our farmers' prices. Not anymore!"
The People's Bank of China allowed its currency to fall below 7 yuan to the American dollar, which is considered to be a psychologically important marker, for the first time in a decade. The move was seen as a retaliatory measure following Trump's threat to slap a 10% tariff on $300 billion of Chinese goods"

https://www.cnn.com/2019/08/05/business/china-currency-manipulator-donald-trump/index.html

The Dow dropped about a thousand points with this news today. What do you think the long term effects of this will be? Recession?
Trade Agreement?

 

[Josiah]

Trump was elected* because he was NOT Washington, would NOT act like politicans, would NOT act like political insiders..... He was elected because he never held a political office, was not part of the "swamp".... He was elected because people saw him as a "straight shooter", because he was a successful BUSINESSMAN who would act like a BUSINESSMAN and not like world politicians. IMO, they probably got what they voted for.

I've never read the book, but I've heard repeatedly (including in my MBA classes) that if you read "The Art of the Deal" you totally "get" Trump. He DOES exactly what he teaches in that book. Yes, it SURE throws off the political leaders (and not just of the USA) but he makes the progress he hopes for. I've been told (more than once) that any business exec understands exactly what he's doing. But there are none running the world's "news" media (they tend to be pansies of the liberal politicians) or the politico who understand a businessman's approach to "deals"


I CAN tell you this: Often, "sides" come to the table because they both NEED and/or WANT a deal to happen. BOTH come with bold positions ("If you aim low, you get what you want") and present it as what must happen. Then the discussion happens.... lots of things get said softly.... both need to leave being able to tell their "side" they they got a good deal, but almost never is that the position they came with.



As for the stock market, things swings are caused by day traders..... people who ride the daily waves..... they create those waves and they make money by the movement. Unless the Market drops 20% or more and this dive PERSISTS for weeks, I wouldn't pay it any attention. Most who invest in the Market pay no attention to the "surfers" who live by creating crisis; they invest in the economy - and stay put. OVER AND OVER, they tend to do well. I have a significant portfolio - and frankly, I never pay ANY attention to the DOW on any given day; none. I meet regularly with my investment guys.... and I have done extremely well (yes, and that includes under Trump).


My $0.01


- Josiah




* not by me

 

[psalms 91]

On this I agree with Trump, China has taken advantage of us in this area for far to long and while it is painful it is also necessary

 

[tango]

I can't help thinking trade wars are unlikely to benefit very many, and it's a bit rich to call China a "currency manipulator" given the way most western economies have played fast and loose with their own currencies and economies.

 

[NewCreation435]

On this I agree with Trump, China has taken advantage of us in this area for far to long and while it is painful it is also necessary

For at least 30 or 40 years that I am aware of they have been taking advantage of unfair trade practices and after Clinton it only got worse. So, your right on that.