McRocket
Gold Member
- Apr 4, 2018
- 5,031
- 707
- 275
- Banned
- #1
'In what will almost certainly be remembered as one of the most chaotic weeks for global markets in recent memory due to the unceasing flow of trade news, global stocks were back in risk-off mode Thursday after a seemingly offhanded remark by President Trump during a MAGA rally last night doused the sense of optimism that had prevailed earlier in the day.
But with the Chinese delegation having arrived in Washington, more reports published late Wednesday and early Thursday have offered new insights into why Beijing decided to play hardball, and how Washington is planning to show that it means business while stopping short of torpedoing any accumulated goodwill with new tariffs.
Though paperwork filed by the Trade Representative's office on Wednesday suggests that tariffs will almost certainly rise on Friday, the administration has apparently come up with an important caveat that could allow negotiators more time: The new tariff rates won't apply to goods already in transit, which would give negotiators up to a month to work out a deal before the new rates take effect, according to the FT.
WSJ claimed that President Xi and the senior leadership interpreted Trump's attacks on Fed Chairman Jay Powell as a sign that Trump would be ready to compromise.
The reason? It was interpreted as evidence that Trump secretly believed the US economy was more fragile than the official data reflected. Meanwhile, the Chinese economy has stabilized, in part thanks to a massive stimulus program.
Beijing was further emboldened by Trump's professions of 'friendship' with Xi, and his praise for Liu. Then, an April 30 Trump tweet praising Chinese economic policy cemented this view, according to WSJ's sources.
An analyst quoted in the WSJ piece offers an apt summary: "Why would you be constantly asking the Fed to lower rates if your economy is not turning weak?"
That's a great question. We're still waiting for an explanation on that one.'
How Trump's Attacks On Powell Led To Collapse Of China Trade Talks
In other words...Trump blew it.
Any first year investor knows that if you start asking the Fed for lower rates and even QE (both of which Trump openly did), it OBVIOUSLY means that the POTUS is not confident in the economy.
Once again, Trump proved what an amateur he is AND what a big mouth he has.
But with the Chinese delegation having arrived in Washington, more reports published late Wednesday and early Thursday have offered new insights into why Beijing decided to play hardball, and how Washington is planning to show that it means business while stopping short of torpedoing any accumulated goodwill with new tariffs.
Though paperwork filed by the Trade Representative's office on Wednesday suggests that tariffs will almost certainly rise on Friday, the administration has apparently come up with an important caveat that could allow negotiators more time: The new tariff rates won't apply to goods already in transit, which would give negotiators up to a month to work out a deal before the new rates take effect, according to the FT.
WSJ claimed that President Xi and the senior leadership interpreted Trump's attacks on Fed Chairman Jay Powell as a sign that Trump would be ready to compromise.
The reason? It was interpreted as evidence that Trump secretly believed the US economy was more fragile than the official data reflected. Meanwhile, the Chinese economy has stabilized, in part thanks to a massive stimulus program.
Beijing was further emboldened by Trump's professions of 'friendship' with Xi, and his praise for Liu. Then, an April 30 Trump tweet praising Chinese economic policy cemented this view, according to WSJ's sources.
An analyst quoted in the WSJ piece offers an apt summary: "Why would you be constantly asking the Fed to lower rates if your economy is not turning weak?"
That's a great question. We're still waiting for an explanation on that one.'
How Trump's Attacks On Powell Led To Collapse Of China Trade Talks
In other words...Trump blew it.
Any first year investor knows that if you start asking the Fed for lower rates and even QE (both of which Trump openly did), it OBVIOUSLY means that the POTUS is not confident in the economy.
Once again, Trump proved what an amateur he is AND what a big mouth he has.
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