What's China Biggest Worry About the Trade War and Stock Prices Here

[william the wie]

China has to keep the Hong Kong dollar in lock step with the US Dollar or it violates at least some, probably most, contracts with non-US buyers to some unpleasant extent. Then there is the question of whether the Hong Kong dollar will stay a trusted currency. The Politboro shot themselves in the foot. With a lot of dual Hong Kong/Canada citizenship cases ready to leave Hong Kong before it goes completely in the tank. The cause of this last problem is the extradition treaty with the mainland. That little jewel repeals at least some civil rights the Hong Kong population thought were carved in stone. Beijing is flirting with tanking Hong Kong and that's dumber than being a TDS case.

Dumping US treasuries will hurt China more than the US because of the Hong Kong/US dollar link. The Chicoms won the last change of dynasty because of stupid stunts like this by the nationalists. It will take inflation in the double or even triple digits to stave off civil war if playing with the Hong Kong dollar causes a major crunch. I have no idea how China will stay solvent if another round of tariffs hit. Any ideas?

 

[Likkmee]

How many people on Earth ?
How many In the US ?
How many people need tennis shoes ?
Insert line one. Subtract line two.
Get it ?

 

[william the wie]

Wow, even RCP had an editorial today about China screwing the pooch on Hong Kong and the tariffs.

 

[Picaro]

China's biggest worry is that Wall Street won't have enough pull to keep their racketeering solvent and they will face the U.S. building its domestic economy back up. They can't compete here without massive tax breaks and subsidies from the American govt. to corporations who think they have a 'right' to slave labor.

 

[Picaro]

Losing Hong Kong's special status will cut them off from a lot of technology transfers and income they need; they use American satellites for their military, for instance, and if they lose Hong Kong or crack down on it they lose access to modern satellite tech, just for one thing. They do a lot through Hong Kong.

 

[Picaro]

WSJ Journal reports companies moving plants out of Red China to other Asian countries. Next will come a boom lowering on Red Chinese investments in U.S. domestic companies. Might be worth watching those; they're spread over a range of industries and real estate.