Capital flows to china
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Started by wglassfo - May 11, 2020, 11:52 p.m.

Trump has made several threats against china.

He has mused about defaulting on chinese ownership of treasuries, he wants a major retirement fund to pull some 50 billion out of chinese equity markets, he has threathened to stop the flow of capital into china

So what has happened.

The yuan has depreciated greatly as china show no ssigns of vigoursly defending the value of the yuan. Mean while the USD is very strong

So, that means china can sell on intn'l markets while the USA buys with pieces of paper. That sounds good, so long as those pieces of paper have the confidence of the world investment community. But with the deficit exploding with no end in sight. Pelosie wants the next stimulas bill to be much larger, so where and when does it end.

 The Fed is buying almost every asset within easy distance of their buying arm, If the Fed does or not is a guess at this point, but never has the world seen so much debt. And who has fed this debt machine. Why the ECB, Japan, and the americian Fed. Mean while the americian manufacturing industry has been decimated, with pieces of paper being printed to buy what we used to produce. Will we print more pieces of paper and continue to pay workers to not work and industry to not manufacture or just let the economy stay shut down while we print pieces of paper. Yes we can re-open but if people choose to not work, what do you do. Employers pay 13.00/hr while people receive 115.00/hr to stay home. Will Pelosie want a bigger stimalas bill and then another stimalas bill with no end insight as the unemployment numbers are so large, that we simply can not turn our back on unemployed people.

I know any sane person would say this is crazy but do you think Pelosie and the left will want the unemployed to suffer when votes are the end game. Once a gov't program is started do you think it will be so easy to just shut it down???  Who would risk the stories from MSM of people being evicted from their home because of no money to pay the rent, utilities shut off, no food on the table etc etc

So what is the end game?? Does the Fed embark on an endless game of printing pieces of paper, does the deficit really matter all that much. As I said the USD is very strong.

Mean while Argentina has seen their currency devalue greatly but guess what. Argentina is selling hand over fist to china with cheap grain and meat

So who is the winner in this battle of world trade and currency wars

What will a lb. of hamburg cost a yr from now. Will your income increase an equal amount???

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