But the China thing is interesting in terms of the negotiations, looking at the China FX chart, it looks like they are VERY risk averse. These guys dont want to have a thing to move up or down quickly. FX is treated pretty much like a Fixed regime with little daily changes. When stocks collapsed last year, they were out there with their Plunge Protection Team buying stocks, halting trading all over the place, even arresting people for selling stocks etc. These guys are scared of volatility. This gives Trump more leverage in the negotiation. I suppose a lot of the people that are running things in China know they are screwed if the dictatorship falls, they might be imprisoned or even worse, executed. Not that hard to get leverage on them
I'm talking about all the QE buddy. How is printing money different from what China does? Seriously, I think of myself as fairly simple on this. Where does a central bank get money to buy securities and stocks/ETFs? It doesn't produce anything, it doesn't sell services. It prints money. So,why is China different?
China accumulated a HUGE reserve during their good years, thats because they kept their currency undervalued and run a big trade surplus. A currency to fall during bad years because of loose monetary policy is fair game, central banks cut rates during recessions and when they cant, they do QE. This is fair game, most economists would agree its the right policy. They have an inflation target after all, if you dont do it, you miss it. But if the US were China, they would be all over trying to hold back the USD now, printing currency, intervening it down, etc. But they are not doing that, they are taking in on the chin
The US isn't within a ghost of it's inflation target for heavens sake Can we get back to Trump's bullshit? That was the original discussion.
You make a case for Trump's bullshit, it's not a hard case to make. However with your own personal story, you outline that being an asshole gets things done for you and how it works well. I think you are missing that many Americans, or people generally, want to do the things Trump does. Sure, I'm taking the Hobbes view of the world, but can you prove that other side is correct?
Please read my shit again. I'm making a case why it DOESN'T work well. I'm not missing anything, I don't give a flying fuck why people generally want what Trump does. Generally, the average IQ has an upside of 110. As far as I'm concerned, that is a fucking idiot I would never have hired even if you paid me to. My point is compulsion ends in failure. Do you get that?
I can tell when someone is having a bad day, and you've posted decent stuff before so I'll let that dog lie. With that said, if you are going to make that claim above. Prove it. You have 1 data point on a personal anecdote. In fact, Trump stands as your anti thesis.
Oh fuck off sunshine. Exactly what data point am I offering? If you are too fucking thick to understand, it is called anecdotal evidence. All I said was compulsion ends in failure. No data there, unless you have your head stuck so far up your arse you can't see daylight, which seems to be the case. Data point? Are you nuts?
Let me ask you this blunt question. Why do you have this compulsion to fuck with me? I was discussing stuff with Daal? Are you Daal's alter ego? Stick to the point about currencies if you wish to continue.
Well, I will give you this, trade is different than real estate because in RE once the deal is done there is no going back. You own it forever, but with trade, if one of the sides feels like they got a bad deal, at some point in the future they might try to reverse it. Thats what Trump is doing with NAFTA. So, its possible that in the future, other countries will try to reverse the 'Trump deals'. Especially if whoever takes over after Trump (whether in 4 or 8 years) shows weakness and lack of tougheness in negotiation