August 8, 2019
China retaliated against the United States with some fairly serious economic measures earlier this week. This story has been somewhat lost in the news cycle because of the Jewish media’s fixation on mass shootings and White supremacist terrorism.
With the news cycle so heavily focused on the two mass shootings that occurred over the weekend, there hasn’t been nearly as much attention paid to the big economic news out of China.
On Monday, the Chinese announced a number of fairly significant economic measures targeting the United States. The most noteworthy of which was their announcement that they’d be halting the purchase of American agricultural products while further devaluing their currency.
Chinese companies have stopped buying U.S. agricultural products, China’s Commerce Ministry said on Tuesday, a blow to U.S. farmers who have already seen their exports slashed by the more than year-old trade war.
China may also impose additional tariffs on U.S. farm products, the Ministry said, raising the barrier to future trade that further targets rural states that supported U.S. President Donald Trump in the 2016 election.
Trump said on Thursday that Beijing had not fulfilled a promise to buy large volumes of U.S. farm products and vowed to impose new tariffs on around $300 billion of Chinese goods, abruptly dimming prospects of a trade deal.
China on Monday also let the yuan weaken past the key 7-per-dollar level for the first time in more than a decade. The United States responded by designating China a currency manipulator.
Wall Street did not respond favorably to the news and we’ve seen a substantial decline in the stock market.
We’ve also seen gold and bitcoin rise in response to the news. Gold has surged from around $1,400 to $1,500 and bitcoin has gone from around $10,500 to around $11,750.
Comically, the United States Treasury decided to label China as a currency manipulator as a result of their decision to weaken their currency. It’s really quite the joke to do this, because the term has no meaning. Every central bank including the Federal Reserve is by its very function a currency manipulator. They all arbitrarily set interest rates which determines the value of currency.
The Jewish media is framing this story as just another aspect of the ongoing trade war between the United States and China. But there’s more to the story than just trade. It is doubtful the Chinese would have retaliated with such stiff measures if it wasn’t for American intelligence stirring up riots and causing chaos in Hong Kong. The Chinese have even come out accusing American intelligence assets of being behind the unrest. This entire fiasco has derailed promising trade negotiations and invited this angry economic response from China.
Despite that, Donald Trump has been correct to enact tariffs and tough trade policies against the Chinese. All sorts of manufacturing jobs have been shipped over to China while they were allowed to sell their products in the United States with no financial penalty. It was a totally unfair situation as shown by the enormous trade deficits the United States has had with China. But these measures were supposed to be the means to which a fair trade deal could be struck.
Unfortunately, all this chicanery in Hong Kong has ruined any good will Trump may have had with the Chinese. It is now much more difficult for him to strike a deal that is mutually beneficial to both parties. The Chinese either view Trump as untrustworthy or someone who has little if any control over the government he is allegedly in charge of.
As a result, it would not be a surprise to see China enact even stiffer economic measures against the United States moving forward. And they still have some cards to play. China holds over $1 trillion in US Treasury Bonds and they could create some fairly substantial economic problems for the United States if they decided to start dumping them into the open market.