Trump's trade war with China

Discussion in 'Politics' started by Sandy Shanks, Aug 14, 2019.

  1. Sandy Shanks
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    Sandy Shanks VIP Member

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    "If anyone had doubts that trade was the thing hanging over the market, today seals it," said Bill Stone, chief investment officer with Avalon Investment & Advisory.

    Tariffs on popular consumer goods like clothing, shoes, computers, and cell phones cause higher prices. Even Trump admitted that yesterday. Higher prices cause inflation. Inflation causes less demand. Less demand causes unemployment. Tariffs cause recession, Econ 101.

    When Americans suffer investment losses it causes permanent loss of principle, fourth grade math. Millions of Americans permanently lost more of their principle in investment accounts today.

    As things stand now, the Dow has lost over 575 points, the Nasdaq over 200 points, and the S&P over 65 points. The reason: Stocks plunged on Wednesday, giving back Tuesday’s solid gains, after the U.S. bond market flashed a troubling signal about the U.S. economy, a recession warning.

    There have been five such warnings of the 2-year and 10-year yields since 1978 and all were precursors to a recession.

    Dow tanks 800 points in worst day of 2019 after bond market sends recession warning

    Today, the Dow is at 25,690. On March 15, the Dow was 25,440. Because of Trump's trade war with China, the market has been treading water for five months. Stock Market News For Feb 15, 2019

    I have been a student of current political history for over a half century, and I am a retired columnist. Never in my 50 years have I seen a U.S. President repeatedly harm our economy and cause investment losses. The current President is doing that very thing. The past three weeks prove it.

    We are reminded that Trump was Putin's personal choice to become our President.
     
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  2. Sandy Shanks
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    Sandy Shanks VIP Member

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    Here is an update on those figures. Matters are far worse than my earlier report.

    The Dow is down 800 points, the Nasdaq is down 242 points, and the S&P is down 86 points. The Dow is currently at 25,480, 40 points higher than it was five months ago.

    Naturally, Trump and Trump's Democrat, Peter Navarro, the architect of the trade war with China, are both blaming the Fed, according to the Trump Network, otherwise known as Fox News.

    “This is basically the Federal Reserve’s problem,” Navarro said. “They are causing this because when Jay Powell got in this chairman he proceeded to rein in interest rates by at 100 interest points, too far too fast. Even though the Trump economy is rock solid, it slowed us down a bit because of those higher interest rates.”

    Trump joined the chorus, tweeting, "The Fed has got to do something! The Fed is the Central Bank of the United States, not the Central Bank of the World."

    This, of course, is good for my health. If Trump ever accepted blame for his screwed up policy and apologized, I might have a coronary.

    What Trump and his Democrat are saying is meant for his base. They are gullible enough to believe it. No one else will.

    Let's take a look at the facts. On August 1, Trump announced a 10% tariff on $300B of Chinese goods that are popular with American consumers, clothing, shoes, computers, cell phones, etc. That precipitated the worst week of the year for the stock market. The following Monday, August 5, Trump's announcement caused the worst day of the year. The Dow plunged 760 points.

    On August 12, the Dow lost 391 points, but then on August 13 The US Trade Representative announced a delay of Trump's tariffs on several categories of Chinese-made consumer goods until December 15. Those goods include cell phones, laptop computers, video game consoles, certain toys, computer monitors, and certain items of footwear and clothing, and the Dow shot up more than 400 points.

    Tariffs on popular consumer goods cause higher prices. Even Trump admitted that yesterday. Higher prices cause inflation. Inflation causes less demand. Less demand causes unemployment. Tariffs cause recession, Econ 101.

    Today, August 15, the stock market set another record. Now it is the worst day of the year. The reason, recession fears. The Times reports, "Trade-war worries hammered financial markets again on Wednesday as data from Germany and China showed trouble for manufacturing-reliant economies, while the bond market renewed fears of an American recession."

    But our President thinks the Fed is to blame. The complete lack of comprehension on the part of our current President never ceases to amaze me.

    "If anyone had doubts that trade was the thing hanging over the market, today seals it," said Bill Stone, chief investment officer with Avalon Investment & Advisory.
     
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  3. Rambunctious
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    Rambunctious Gold Member

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    CHILL....the market will come roaring back....the tariffs are a necessary evil we must support and endure for future economies...this drop today was a result of several things that have popped up.....and the fact that the hate Trump media are trying to bring on a recession.....or the fear of one....
     
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  4. Thinker101
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    Thinker101 Gold Member

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    So...did Mr. Bill suggest you withdraw all your investments?
     
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  5. C_Clayton_Jones
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    C_Clayton_Jones Diamond Member

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    Trump's trade war with China is a failure, as is Trump's 'presidency.'
     
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  6. Staidhup
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    Staidhup Gold Member Supporting Member

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    America can least afford to become China’s dumping ground not less allow them to hold intellectual property as a bargaining chip required in accessing their market. To some this is not a problem to others it is. China is playing their hand in the attempt to force trump to fold granting them full control. In the event Trump folds the US economy will eventually collapse, unemployment will escalate, manufacturing grind to a halt.
     
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  7. sparky
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    sparky Gold Member

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    China could care less about 3% of their economy

    ~S~
     
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  8. FA_Q2
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    FA_Q2 Gold Member

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    This assumes that communist China is more efficient than capitalist USA.

    I would argue that capitalism has proven far more efficient and effective at bringing a product to market than socialism.
     
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  9. Crepitus
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    Crepitus Gold Member

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    1 year ago the dow was 25,162.41, today it ended at 25,497.42

    Pretty much flat for the whole year.
     
  10. Sandy Shanks
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    Sandy Shanks VIP Member

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    Trump has been saying that for two years. Matters are worse now than they ever have been. Wall street has been treading water for five months.

    Funny thing about Trump. With him all the good stuff is always in the future. He has accomplished nothing. He has only harmed the economy, the Iranian problem is worse, our allies do not trust him, his deranged rhetoric inspired three killers, and he continues to set record lows on Wall Street.

    What do you like about him?
     
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