How the Chinese will respond to Trump's trade actions
Hold on to your butts.
Trump maybe teflon with his base, but the same can't be said about congress people. They will bear the political brunt of China's retaliation. At this point, i'm like
The government will make it right
Hold on to your butts.
Trump maybe teflon with his base, but the same can't be said about congress people. They will bear the political brunt of China's retaliation. At this point, i'm like
Trump is teflon to social problems that used to wipe out other politicians.
But I don't think he is teflon to the thing that always trump everything else, the economy. If we go into a recession on his watch or a large enough of his supporters lose their jobs under trump, his Trump shine is going to disappear and these people will not cape for him I believe. I may be naive, but I think this is one area where no politician has invulnerability.
Its very hard to root "MAGA! GO TRUMP" while standing in the unemployment line and your mailbox is pilling up with unpaid bills.
CurrencyChase
Banned
I get what you mean but we been living in bazaaro world since Trump ran for president. He's good at bringing out the worst in uneducated, racist white people. Im starting to believe that these people are ready to the full hit from his stupidity and they will smile and blame everyone but him. I wouldn't be surprised if they want to go to war against minorities in this country before accepting that it was their fault.
https://www.globalresearch.ca/the-u...-using-the-yuan-as-a-reserve-currency/5642417
Far-reaching trade policies and sanctions against China are envisaged, According to Reuters:
The United States said on Tuesday that it will continue pursuing action on trade with China, days after Washington and Beijing announced a tentative solution to their dispute and suggested that tensions had cooled.
By June 15, Washington will release a list of some $50 billion worth of Chinese goods that will be subject to a 25 percent tariff, the White House said in a statement. The United States will also continue to pursue litigation against China at the World Trade Organization.
In addition, by the end of June, the United States will announce investment restrictions and “enhanced export controls” for Chinese individuals and entities “related to the acquisition of industrially significant technology,” it said.
In mid-May, China agreed to increase purchases of U.S. Commerce Department told lawmakers it had reached a deal to put Chinese telecommunications firm ZTE Corp back in business.
While the announcements eased worries about the possibility of a trade war between world’s two largest economies, U.S. President Donald Trump also said last week that any deal between Washington and Beijing would need “a different structure,” fueling uncertainty over the talks.
Trump has threatened to impose tariffs on up to $150 billion of Chinese goods to combat what he has labeled unfair trade practices on the part of Beijing. Meanwhile, China has warned of equal retaliation, including duties on some of its most significant U.S. imports, like aircraft, soybeans and vehicles. (Reuters Report)
***
PressTV: What do you make of this so-called Trade War between the US and China?
Peter Koenig: It’s like almost everything by Trump – “on again, off again…” – Will these threats be materialized or just remain threats for propaganda, for public consumption?
The same with the long-sought head-to-head meeting between Trump and Kim Jong-Un on 12 June in Singapore – it was on, then off and now – maybe.
Iran – after 9 years of hard negotiations the 5+1 Nuclear Deal was singed in July 2015 – Trump comes in – of course highly influenced by Netanyahu – the deal is off. But he doesn’t like that the other four will stick to it.
Same with China and the so-called Trade War. China certainly will not like tariff “punishment”. But, I’m sure if it happens, China has many avenues to circumvent dealing and trading with the US. But once that happens, China may be lost for good for the US market. And Trump knows it – hence, a little bit the on-and-off game. He wants to test the waters; see who reacts how.
PressTV: You say China has many avenues to circumvent the US sanctions or retaliate. What can China do?
PK: China can of course also levy import duties on US goods. China doesn’t depend on US imports. China is self-sufficient and has, as it is, a huge trade surplus vis-à-vis the US.
China also controls the Asian market – having over taken the US already a couple of years ago.
But what I really suspect is that Trump wants to discourage the world from using the Yuan as a reserve currency, since as such, it lowers not only the value of the US dollar, but it replaces the US dollar as the de facto reserve currency in the world.
Only 20 years ago, or so, the US dollar figured to 90% as reserve currency in treasuries around the globe. Today that percentage has shrunk to below 60%.
As you know, the Yuan has become an official IMF reserve currency about a year ago. That established worldwide trust in the Chinese currency, especially since the Yuan is backed by the Chinese economy plus by gold. Whereas the US dollar has no backing whatsoever; it’s pure and simple FIAT money.
Plus, the US is broke. Everybody knows it. The US has a current debt of about 110% of her GDP, more than the Greek debt was in 2008.
And if counting what the US General Accounting Office calls, “unmet obligations” or “uncovered liabilities” – the US debt is about 7 ½ times the US GDP.
Of course, such figures do not go unnoticed by the treasurers of the world.
So, Trump’s trade war with China – or the Propaganda for a Trade war, might as well be a Propaganda against the Yuan, diminishing its reputation – so as to deflect from every country’s golden opportunity to use the Yuan to replace the dollar as reserve currency.
*
Peter Koenig is an economist and geopolitical analyst. He is also a water resources and environmental specialist. He worked for over 30 years with the World Bank and the World Health Organization around the world in the fields of environment and water. He lectures at universities in the US, Europe and South America. He writes regularly for Global Research; ICH; RT; Sputnik; PressTV; The 21st Century; TeleSUR; The Vineyard of The Saker Blog; and other internet sites. He is the author of Implosion – An Economic Thriller about War, Environmental Destruction and Corporate Greed – fiction based on facts and on 30 years of World Bank experience around the globe. He is also a co-author of The World Order and Revolution! – Essays from the Resistance.
Far-reaching trade policies and sanctions against China are envisaged, According to Reuters:
The United States said on Tuesday that it will continue pursuing action on trade with China, days after Washington and Beijing announced a tentative solution to their dispute and suggested that tensions had cooled.
By June 15, Washington will release a list of some $50 billion worth of Chinese goods that will be subject to a 25 percent tariff, the White House said in a statement. The United States will also continue to pursue litigation against China at the World Trade Organization.
In addition, by the end of June, the United States will announce investment restrictions and “enhanced export controls” for Chinese individuals and entities “related to the acquisition of industrially significant technology,” it said.
In mid-May, China agreed to increase purchases of U.S. Commerce Department told lawmakers it had reached a deal to put Chinese telecommunications firm ZTE Corp back in business.
While the announcements eased worries about the possibility of a trade war between world’s two largest economies, U.S. President Donald Trump also said last week that any deal between Washington and Beijing would need “a different structure,” fueling uncertainty over the talks.
Trump has threatened to impose tariffs on up to $150 billion of Chinese goods to combat what he has labeled unfair trade practices on the part of Beijing. Meanwhile, China has warned of equal retaliation, including duties on some of its most significant U.S. imports, like aircraft, soybeans and vehicles. (Reuters Report)
***
PressTV: What do you make of this so-called Trade War between the US and China?
Peter Koenig: It’s like almost everything by Trump – “on again, off again…” – Will these threats be materialized or just remain threats for propaganda, for public consumption?
The same with the long-sought head-to-head meeting between Trump and Kim Jong-Un on 12 June in Singapore – it was on, then off and now – maybe.
Iran – after 9 years of hard negotiations the 5+1 Nuclear Deal was singed in July 2015 – Trump comes in – of course highly influenced by Netanyahu – the deal is off. But he doesn’t like that the other four will stick to it.
Same with China and the so-called Trade War. China certainly will not like tariff “punishment”. But, I’m sure if it happens, China has many avenues to circumvent dealing and trading with the US. But once that happens, China may be lost for good for the US market. And Trump knows it – hence, a little bit the on-and-off game. He wants to test the waters; see who reacts how.
PressTV: You say China has many avenues to circumvent the US sanctions or retaliate. What can China do?
PK: China can of course also levy import duties on US goods. China doesn’t depend on US imports. China is self-sufficient and has, as it is, a huge trade surplus vis-à-vis the US.
China also controls the Asian market – having over taken the US already a couple of years ago.
But what I really suspect is that Trump wants to discourage the world from using the Yuan as a reserve currency, since as such, it lowers not only the value of the US dollar, but it replaces the US dollar as the de facto reserve currency in the world.
Only 20 years ago, or so, the US dollar figured to 90% as reserve currency in treasuries around the globe. Today that percentage has shrunk to below 60%.
As you know, the Yuan has become an official IMF reserve currency about a year ago. That established worldwide trust in the Chinese currency, especially since the Yuan is backed by the Chinese economy plus by gold. Whereas the US dollar has no backing whatsoever; it’s pure and simple FIAT money.
Plus, the US is broke. Everybody knows it. The US has a current debt of about 110% of her GDP, more than the Greek debt was in 2008.
And if counting what the US General Accounting Office calls, “unmet obligations” or “uncovered liabilities” – the US debt is about 7 ½ times the US GDP.
Of course, such figures do not go unnoticed by the treasurers of the world.
So, Trump’s trade war with China – or the Propaganda for a Trade war, might as well be a Propaganda against the Yuan, diminishing its reputation – so as to deflect from every country’s golden opportunity to use the Yuan to replace the dollar as reserve currency.
*
Peter Koenig is an economist and geopolitical analyst. He is also a water resources and environmental specialist. He worked for over 30 years with the World Bank and the World Health Organization around the world in the fields of environment and water. He lectures at universities in the US, Europe and South America. He writes regularly for Global Research; ICH; RT; Sputnik; PressTV; The 21st Century; TeleSUR; The Vineyard of The Saker Blog; and other internet sites. He is the author of Implosion – An Economic Thriller about War, Environmental Destruction and Corporate Greed – fiction based on facts and on 30 years of World Bank experience around the globe. He is also a co-author of The World Order and Revolution! – Essays from the Resistance.
Globalresearch? 
you see some of the craziest sites link here.
anyway this trade war needs to get going. all this bluster is lame, start acting.
you see some of the craziest sites link here.anyway this trade war needs to get going. all this bluster is lame, start acting.
I found Koenig's take interesting.Globalresearch?
anyway this trade war needs to get going. all this bluster is lame, start acting.
It is a fact that the share of dollars as the reserve currency has gone from 90% to 60%
I doubt Trump is knowledgeable or sophisticated to keep the dollar as the world's reserve currency... pulling out of the Iran deal effectively hurts that goal.
The weirdest industry shift I've heard from this is pistachios. Basically he's killing our exports to China (world number 1 importer) and giving that market to Iran. If he so loathes Iran, why is he giving them the keys to a multi billion dollar industry, while killing our own?
brick james
John piffington
What scares me is that it becomes even easier to blame immigrants when you're standing in the unemployment line. Im scared for America if what these farmers and blue collar workers take from Trump's awful economic choices is that he didn't go far enough.
Jhoon
Spontaneous Mishaps and Hijinks
Immigrants were going to get the blame regardless of the topic. Typical of the pull up strings crowd.
Jhoon
Spontaneous Mishaps and Hijinks
He doesn’t understand economics on any level. He’s being propped up by the check book on the dining room table crowd.
Futuristic Eskimo
All Star
In a world of Central Bank driven financial insanity, I'm not so sure that the idea of a reserve currency is as necessary as it once was. Japan is basically monetizing its debt directly and the market is pricing it as risk free.
How long this can last is up for debate but the importance of petrodollar recycling and having the reserve currency might be a bit antiquated. That's not to say that i support this idiot accelerating its demise in any way, though.