This just proves that China just won the trade war. I have said this over amd over. China will win this trade war and that's exactly what is happening. All talk and no action is what the president made this trade war to be. Trump knows China is too powerful to mess with that's why he is giving them what they want. NO TARIFFS. its exactly what I said. I knew he from day 1 that these tariffs wouldn't last and here we are today with tariffs being dropped. Weak weak weak. Weak weak. China has won this trade war!!!!!!! Dow futures jump 100 points after China says it has agreed with the US to remove existing tariffs PUBLISHED 3 HOURS AGOUPDATED AN HOUR AGO Sam Meredith@SMEREDITH19 KEY POINTS At around 04:00 a.m. ET, Dow futures rose 135 points, indicating a positive open of more than 119 points. Futures on the S&P and Nasdaq were both higher. On the data front, the latest weekly jobless claims will be released at around 8:30 a.m., with consumer credit figures for September due to be published later in the session. https://www.cnbc.com/2019/11/07/sto...-in-focus-amid-us-china-trade-deal-hopes.html
China is not powerful. They stand to lose a lot. China is the world's cheap manufacturing. If they lose the US they need to make it up in other ways, which they are doing by building infrastructure for others on a consignment basis. But this will not filter down to the people as well as status quo and so the Chinese will see unrest and high unemployment for at least some time if there is no trade deal. US politicians do need to be smarter about things not just give in to the Chinese if Trump is voted out. But that's an oxymoron, sort of like smart retard. So in the end, China will win but can they last six more years with ever increasing tariffs?
How long will the balloon in the US last on the other hand? Skyhigh government debt, a crippling infrastructure, total dependence of US tech companies on foreigners (cannot produce enough talent on its own), a consumer deeply in debt, companies that have just reported the best earnings possible, a central bank that can't raise rates because it would bankrupt most corporations that have loaded up on debt to their limits, they can't cut rates because they are close to zero. Washington DC that is deeply divided. A society that is deeply divided as well and where there is no healing in sight. US corporations by large majority output mediocre products and services, there are pockets of top quality and innovation but generally, quality standards lie far below the ones of countries like Switzerland, Germany, Sweden, Holland, Japan,... How long will the US last?
China isn't powerful? Hahaha. Stand to lose alot? Who are you kidding. Without china this world is Nothing. The US made China a powerhouse, this never would have happened if the US just kept the jobs here in the US instead of outsourcing. This has been a slow change the last 50+ years. Now it's too late to turn back, made in America is gone forever. The cost to manufacture here is sky high. Should have never sent the jobs away but now too late to bring them back as china is now the leader and will always be the leader in this area. Oh well. And if china slows down the global economy will go deep into recession, no way around it. China is the world. You may not believe it but it's so very true.
There's no such thing as too late. Might be an adjustment period but it makes no sense to continue to support the Chinese anymore. That's the big stick the US has. The supply chain will adjust. It is in the best interest of the Chinese and others to engineer political division. I'm not sure how much "USA #1" is relevant when it comes to trade wars. Aside from China, all those countries you cite are tiny in comparison to the USA. Trump just has to decide the Chinese are not interested in a deal and operate accordingly. That would fuck the Chinese in the short term. The US has mobilized in a unified manner before when it was necessary, I'm sure they can do it again. As for debt, most of the debt is owed locally, the USG could just decide to default on local debt. The problems you cite will have nonstandard solutions but the underlying motivation will be to protect the American way of life (TM), whatever that is perceived to be. Edit: BTW, did you guys notice the Hong Kong stuff is less in the news now that "phase 1 may at some point in the future be considered to be signed"
China is dropping tariffs https://www.cnbc.com/2019/11/07/chi...cel-existing-tariffs-in-different-phases.html
I've been saying this for a while but Trump has backtracked on previous "agreement reached" news. Odds Trump pulls out/back tracks as he's done before?
As long as market continues to have great volatility, we don't really bother about who win the battle. We will be very worried if market is not moving. Anyway, always read news with a pinch of salt. Or read news with eyes and mind closed. News keeps on changing and we don't know if it is 1% truth, 50% truth, 99% truth or true truth.