He has a shady reputation and a questionable agenda. It is true he has highlighted some trends in globalization that has resulted in a shift in manufacturing and the resulting adverse impact on the blue collar working class. But it seems to me that he is exploiting these issues for his own nefarious ends.
Last edited by Coolboy; 28-08-2019 at 11:27 AM.
Trumpâ€™s New Trade War Tool Might Just Be Antique China Debt
The Trump administration has been studying the unlikely prospect of reviving century-old claims on Chinese bonds sold before the founding of the communist Peopleâ€™s Republic.
The Hukuang Railway bond is a thing of beauty. Printed with an ornate border and carrying a large chop, the debt was sold in 1911 to help fund construction of a rail line stretching from Hankou to Szechuan.
The U.S. once referred to the money that flowed into China at the turn of the 20th century as â€œdollar diplomacyâ€â€”a way of building relations with the country (and its massive untapped market) by helping it industrialize.
â€œThe Peopleâ€™s Republic of China dismisses its defaulted sovereign obligations as pre-1949 Republic of China debt, but doing so contradicts the PRCâ€™s claim that it is sole successor to the ROCâ€™s sovereign rights,â€
She argues that China is in selective default, having paid out on bonds held by British investors in 1987 as part of the Hong Kong handover deal negotiated by former Prime Minister and â€˜Irony Ladyâ€™ Margaret Thatcher. If China doesnâ€™t pay out, she says, it should be blocked from selling new debt in international markets. By Biancoâ€™s reckoning, China now owes more than $1 trillion on the defaulted debt, once adjusted for inflation, interest, and other damagesâ€”a sum roughly equivalent to Chinaâ€™s holdings of U.S. Treasuries.
â€œWhatâ€™s wrong with paying China with their own paper?â€ says Bianco.
I have always thought the trade war was meant to pressure China politically not necessarily for any trade deal. Why boost a country who ultimately is your enemy? This is classic Bolton and Bannon thinking. AND THEY ARE NOT WRONG. Now the Orange one is getting cold feet because of losing Midwest heartland support. More failure due to the democratic process. Ultimately just pander to the voters. No balls.
Last edited by jonastainine; 11-09-2019 at 12:30 PM.
Trump may also have been angered by almost stumbling into a full-blown war with Iran, something which he does not want in an approaching election year. It was Bolton who championed the hardline regime change approach to Iran by advising Trump to shred the nuclear arms deal. So Trump may have blamed Bolton for the Iran fiasco.
Bottom line, the election may decide Trump's approach to China than any one adviser.