Looks like we have another escalation today in the US / China trade war
US Treasury designates China as a currency manipulator -
https://www.cnbc.com/2019/08/05/us-t...nipulator.html
Looks like we have another escalation today in the US / China trade war
US Treasury designates China as a currency manipulator -
https://www.cnbc.com/2019/08/05/us-t...nipulator.html
Krugman was quick to comment...
https://twitter.com/paulkrugman/stat...347237890?s=09
As was Bill Bishop....
https://twitter.com/niubi/status/115...234280448?s=09
And Krugman rushed an op-ed ...
https://www.nytimes.com/2019/08/05/o...ina-shock.htmlAnd think for a minute about what would happen to a country with an unmanipulated currency, if one of its major export markets suddenly slapped major tariffs on many of its goods. You’d surely expect to see that country’s currency depreciate, just as Britain’s has with the prospect of lost market access due to Brexit.
In other words, the Trump administration in its wisdom has managed to accuse the Chinese of the one economic crime of which they happen to be innocent. Oh, and what are we going to do to punish them for this crime? Put tariffs on their exports? Um, we’ve already done that.
So how does this all end? I have no idea. More important, neither does anyone else. It looks to me as if both Trump and Xi have now staked their reputations on hanging tough. And the thing is, it’s hard to see what would make either side give in (or even to know what giving in might mean.)
At this rate, we may have to wait for a new president to clean up this mess, if she can.
I have a vested interest in the RMB staying high, but personally think that it losing a big chunk of its value would be great. Less money for the CCP to throw around and bully smaller countries, less money for this B&R stuff, less annoying Mainland tourists
Trump already said this. Lol.
Unlike the bold tag.Original Post Deleted
Am I showing my age if I remember the day and age when countries were trying to prop up their currencies?