Economic idiot

US labels China a currency manipulator as trade tensions flare

As I point out elsewhere, the yuan falling is what is supposed to happen:

President Trump is vilely angry that China is manipulating the yuan down in value. This is to undo everything he’s been striving for in the trade negotiations, and how dare they do such a thing? It’s also true that the yuan going own in value is the normal and obvious market response to the various trade tariffs being imposed upon Chinese exports. Blaming people for what ought to happen, blaming people for what would happen even if everyone did nothing, doesn’t seem that great a basis for international politics.

The Donald might be doing good politics but then for me economics always does trump politics.

17 thoughts on “Economic idiot”

  1. We have an official 2% inflation rate target, and a ‘nod and a wink’ for 3% – in other words, it is government policy to devalue Sterling by 2-3% every year.

    Isn’t that currency manipulation too?

  2. The Meissen Bison

    The yuan is not a freely floating currency so markets have nothing directly to do with its value against other currencies.

  3. You clever chaps will know about this stuff: is it true that China has two currencies? The internationally traded yuan, and the domestic yuan.

  4. …but then for me economics always does trump politics.

    In what way? As an area of interest or a belief that economics is more influential than politics?

  5. DJ – ah, thanks

    Edward – My Mum says they’re a very cruel race

    Ironman – Did he do a racism, or something?

  6. I think the currency of China is the Renminbi, whereas the Yuan is the unit of that currency. Something akin to Sterling vs Pound.

    This may be the source of the two currency notion.

  7. Bloke In Westerville

    The Donald might be doing good politics but then for me economics always does trump politics.

    A POTUS – at least one who wishes to be an effective national and world leader – doesn’t have that luxury, now does he?

    If he did, then he’d be an economic idiot.

    But he doesn’t, so the fact of the matter is he isn’t.

  8. Yes because Communist Red China is well known for its freedom loving ways, and its total lack of control of financial markets within its purview……………

  9. Given the Yuan was supposed to be artificially undervalued already then not unreasonable to assume tariff war would not help correct that with it staying still would reduce the artificial gap.
    This is just part of the games, possibly with their state control China has a few more levers to pull than Trump and he’s overlooked this one.

  10. “…China has a few more levers to pull than Trump and he’s overlooked this one.”

    Trump predicted this (counter)move last week. China is probably running out of economic levers and will be increasingly distracted by domestic woes.

    Billions now flowing into US coffers just on the announcement of new tariffs (may not even happen). Plus pressure on the Fed to keep interest rates down, which Trump wants to keep economy booming.

  11. @PJF

    +1

    Trump knows Left, MSM and anti-Trump will never like, vote, credit or thank him no matter what he does/achieves. Thus he ignores them unlike our foolish appeasing Tories.

  12. You don’t know anything about economics though. You think AOC is wrong about the stock market when the federal government literally taxes you less for money lending than it does for actual labor that causes wear and tear on your physical body. You’re a fucking moron. The only thing you “know” about economics is “rich people good.” Dolts like you think trickle down economics is efficient, when metaphorically it’s more similar to placing a heating component in the ceiling rather than the floor. The heat will reach the bottom eventually, but you will waste energy heating the top where it isn’t even needed.

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