Some of you may remember my "worthless dollar" post
I suggestd buying chinese stuff and sending them worthless dollars
MM quickly reeminded me of treaties that did not alloww such a practice if it rsulted in currency manipulation I am now aware the treaty is amongst the G20
Well:
It seems Trump has the same thoughtss i did about treaties and China is very concerned, warning of all out currency wars
China of course says they would win such a war, but experience tells us when china gets vocal, they are worried
Well: Trrump might be willing to call their currency bluff, with the Fed almost forced to come to his aid
Trump seems willing to break with the G20 treaty and any other currency treaties, and engage in a currency war with china, having a very sizable war chest to fight such a battle
And the Fed would be forced to engage with QE
China would see the Yuan or remenbi go up and the USD down in value. China would also see a capital flight, something that would cause a loss of face, which I have said before is very important to china
Now I am not the expert so if I said up when down should be the word or vice versus please forgive me as this is very confusing to me
The bottom line is Trump seems to have accepted the fact a straight up trade war with tarriffs can not be won, with china, and has changed course to a currency war which I sort of suggested, with worthles dollars. Worthless is a bit extreme but worth less would be the best description vs chinese currency. Yuan and remenbi means main land vs off shore currency so don't sweat the use of one or the other, it is essentially the same currency.
I posted Trump would never win a trade war with china
I posted Trump had to do some thing different
He is not buying stuff, as I suggested, he has gone directly to the bottom line and decided to wage a currency war, which seems to me a much better option
He isn't doing exactly what I suggested, but close
He would be going a step further and I think a win able decision
If it isn't a good decision, for Trump, then why is china so vocal about warning Trump to not engage in currency wars
One final thing
If china never honoured a contract, why would Trump abide by a treaty?? He has ripped up so many, a couple more is no big deal.
Trump has not pulled the pin just yet but he could and I hope he does
The currency market is positioning as if he will pull the pin, which is also not helping china
Best of all, Trump has decided beating your head against a brick wall and hoping for good things to happen, might be insanity
I posted something different had to happen and by golly, something different might happen
Wayne,
It's China that's been devaluing their currency not the US.
Since the tariff war started the value of the dollar has been going up, not down.
Golly Mike
Give Trump some credit for thinking
Of course the Yaun has gone down
The USD has gone up
All you did was post the obvious as of today and previous days
Do you think Trump doesn't know this
Do you think Trump knows a tariff was will not be won by the USA
This means something different has to happen
Do you really think Trunmp would do some thing to make the situation worse
You play chess. You know a player thinks several moves ahead
Do you think it possible Trump is thinking about what happens in a currency war.
Trump knows he will not win the trade war with the same ole same ole. He has already pulled back on some tariffs.
Golly Mike
Give Trump a bit of credit
Do you even understand what Trump wants to do
what happens in the days ahead will tell the story.
Trump could win a currency war
You would know that if you understood Trumps plan
Hey Wayne,
So the Buck is tanking a bit after Powell spoke at Jackson Hole an hour ago.
Do you think the Donald had a "speak" with him yesterday?
John