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  • Trade Wars

    https://www.msn.com/en-us/money/mark...cid=spartandhp

    'Stocks fell sharply Monday as a trade war between the world’s largest economies intensified with China retaliating against President Donald Trump’s latest move.'

    'The Dow plunged more than 800 points, while the S&P 500 dropped 3.1% and Nasdaq sank 3.7%. The Nasdaq was on track to fall for a sixth straight session, which would be its longest losing streak since late 2016. The S&P 500 also headed for a six-day losing streak. The Dow was set to fall for a fifth straight day.'

    'The major indexes were headed for their worst day of 2019 and have also fallen more than 5% from record highs set last month.'
    We are not now that strength which in old days
    Moved earth and heaven; that which we are we are; One equal temper of heroic hearts
    Made weak by time and fate but strong in will
    To strive to seek to find and not to yield.

  • #2
    So you don't approve of Trump being a toady of Putin/Russia but are okay with him being a toady and in service to the People's Republic and Worker's Paradise of China ???



    Stocks do tend to flux, it's likely these will go back up in short order.

    Comment


    • #3
      More information on the stock market:

      https://www.cnn.com/2019/08/05/inves...day/index.html
      'A dramatic escalation of the trade war between the United States and China sparked a worldwide sell-off in markets on Monday. The
      Dow
      closed down 767 points, and the
      Nasdaq Composite
      'a proxy for the technology companies that will be most harmed by a trade war' suffered its longest losing streak since November 2016.'
      We are not now that strength which in old days
      Moved earth and heaven; that which we are we are; One equal temper of heroic hearts
      Made weak by time and fate but strong in will
      To strive to seek to find and not to yield.

      Comment


      • #4
        Talking to some friends last weekend while camping, they know that China is getting the worst end of this trade war. These are people that travel to China for work, as their companies have manufacturing partnerships there. They're not working on opening new factories in Vietnam.

        One thing they pointed out, in China, the companies don't pay for factories, the state does. So they don't have to have the markups to cover those costs, either for the existing factories, or new ones that they need.

        Also, they go with cheap equipment. a) it's more important to employee people the being efficient. b) the state will pay for the replacements as long as they keep people employed. c) they don't care it in 2-3 years they have to replace everything.

        Not even getting into the intellectual property theft.
        Matthew 25:14-30. Jesus tells that it is not sufficient merely to maintain things as they are. Those who await should make good use of the gifts that God has provided them.

        Comment


        • #5
          Speaking of cheap equipment... Chinese machine tools are, putting it nicely, crap. Most of their machines have a lot of slop in them so they don't hold tolerances very well It's pretty common to find the steel they're made from is really poor quality so on parts that move or experience things like vibration the machined surfaces soon get out of tolerance.
          Their bearings are crappy too. Not only do they wear out quickly, they often are not precise in rotation so you get more slop.

          Yea, their stuff is cheap to buy and if you don't need more than say 1950's tolerances and are willing to replace the equipment every couple of years, their stuff is probably for you. Otherwise, buy used US or European equipment. It's far better.

          I don't trust Chinese tooling either. The threaded parts wear out like yesterday. Things like cutting tools are of indifferent and questionable quality and materials. Welding wire and rod is often really crappy giving off lots of smoke and splatter.

          For high quality and precision the Chinese would have to go to the US or European manufacturers to get something that works.

          Comment


          • #6
            https://www.cnn.com/2019/08/05/econo...uan/index.html

            The US-China trade war has always been serious. Now it's starting to get scary.


            'China allowed its currency to drop sharply on Monday to the weakest level in more than a decade. And China announced its companies have halted purchases of American agricultural goods.'

            'The Trump administration escalated tensions even further late Monday by taking the historic step of labeling China a currency manipulator. This comes after US President Donald Trump vowed last week to impose tariffs for the first time on a wide swath of US consumer goods from China.'

            'The trade conflict has reached a new level of seriousness that will be difficult to reverse. The risk is that the trade war is approaching the point at which it causes a severe economic slowdown or even a recession.'
            We are not now that strength which in old days
            Moved earth and heaven; that which we are we are; One equal temper of heroic hearts
            Made weak by time and fate but strong in will
            To strive to seek to find and not to yield.

            Comment


            • #7
              https://www.msn.com/en-us/money/mark...cid=spartandhp

              'President Donald Trump recently escalated his trade war with China, threatening to impose a 10% tariff on the remaining $300 billion of untaxed Chinese imports.'


              'If the new tariff goes into effect in September as promised, virtually all Chinese exports to the U.S. would be subject to levies ranging from 10% to 25%. China retaliated by letting the value of its currency fall to the lowest level in more than a decade and halting all crop imports.'

              'Many Americans like me are now wondering: Is there any end in sight?'
              We are not now that strength which in old days
              Moved earth and heaven; that which we are we are; One equal temper of heroic hearts
              Made weak by time and fate but strong in will
              To strive to seek to find and not to yield.

              Comment


              • #8
                Originally posted by G David Bock View Post
                So you don't approve of Trump being a toady of Putin/Russia but are okay with him being a toady and in service to the People's Republic and Worker's Paradise of China ???



                Stocks do tend to flux, it's likely these will go back up in short order.
                No one in the US really has anything to lose from standing up to Putin – except maybe the Trumps personally – in fact, the US has more to lose from NOT standing up to Putin, even if the Trumps personally gains.

                China is a different kettle of fish. Everyone has an interest in standing up to China. But Trump isn't interested in cultivating his natural allies in this, preferring unilateral US trade war with China. But the thing is that everyone loses from a trade war like that.

                It might be that the US loses less than China (while still losing more than those not engaged in a trade war with China). But everyone is losing on a trade war that amounts to a confrontation with China, but one that might have been more efficient if Trump didn't have a zero-sum-game view of both politics and business, and if he was working alongside others. He doesn't understand trade, that's for sure. (We'll see how his trade war with the EU pans out.)

                In the end US consumers are paying the costs of Trump's trade war. And US citizens the costs of his sucking up to Putin.

                Comment


                • #9
                  Well done.

                  We are not now that strength which in old days
                  Moved earth and heaven; that which we are we are; One equal temper of heroic hearts
                  Made weak by time and fate but strong in will
                  To strive to seek to find and not to yield.

                  Comment


                  • #10
                    Originally posted by Massena View Post
                    Well done.

                    The view from across The Pond...

                    Comment


                    • #11
                      https://www.cnn.com/2019/08/06/inves...day/index.html

                      'Dow futures rose Tuesday morning, as US stocks are preparing to rebound after China took steps to ease the budding currency war with the United States.'


                      'China priced the yuan's reference rate at 6.9683 to the dollar, a hair above the key 7:1 ratio to the US dollar. Although that was the weakest level for the yuan in 11 years, many Wall Street investors feared China would price the yuan below that psychological 7:1 barrier.'

                      'The managed yuan continued to slide Tuesday, but the pace of its decline slowed. One dollar last bought $7.0167 yuan in China, and 7.0467 yuan in the offshore market, where the currency trades more freely.''
                      We are not now that strength which in old days
                      Moved earth and heaven; that which we are we are; One equal temper of heroic hearts
                      Made weak by time and fate but strong in will
                      To strive to seek to find and not to yield.

                      Comment


                      • #12
                        What's your advice as the all knowing big kahuna?
                        Continue our previous approach of the past three administration's and allow China to steal our intellectual property, manipulate the market by devaluation of the yen and using capitalism to finance the rise of the Chinese influence and military with the ultimate goal of using military threat to subjugate all of Asia?
                        Or take some kind of action as the UN refuses to do a damn thing about China's manipulation and violations of human rights?
                        Dispite our best intentions, the system is dysfunctional that intelligence failure is guaranteed.
                        Russ Travers, CIA analyst, 2001

                        Comment


                        • #13
                          All I did was post information without comment, along with agreeing with another poster. So, please take your insults somewhere else. If you can't deal with that, then I cannot help you.
                          We are not now that strength which in old days
                          Moved earth and heaven; that which we are we are; One equal temper of heroic hearts
                          Made weak by time and fate but strong in will
                          To strive to seek to find and not to yield.

                          Comment


                          • #14
                            Originally posted by Johan Banér View Post
                            No one in the US really has anything to lose from standing up to Putin – except maybe the Trumps personally – in fact, the US has more to lose from NOT standing up to Putin, even if the Trumps personally gains.

                            China is a different kettle of fish. Everyone has an interest in standing up to China. But Trump isn't interested in cultivating his natural allies in this, preferring unilateral US trade war with China. But the thing is that everyone loses from a trade war like that.

                            It might be that the US loses less than China (while still losing more than those not engaged in a trade war with China). But everyone is losing on a trade war that amounts to a confrontation with China, but one that might have been more efficient if Trump didn't have a zero-sum-game view of both politics and business, and if he was working alongside others. He doesn't understand trade, that's for sure. (We'll see how his trade war with the EU pans out.)

                            In the end US consumers are paying the costs of Trump's trade war. And US citizens the costs of his sucking up to Putin.
                            The only one's I see sucking up to Putin is the EU, specifically the Germans and Merkel.
                            Matthew 25:14-30. Jesus tells that it is not sufficient merely to maintain things as they are. Those who await should make good use of the gifts that God has provided them.

                            Comment


                            • #15
                              Agricultural products are a commodity much like oil or gold. If China isn't buying them, somebody else will, and they might end up selling the US food products indirectly to China. China has a lot of people to feed and if they can't produce what they needed before this trade war, they can't suddenly produce it now. Additionally, China doesn't have a lot of options about where to go as alternates for their agricultural needs.

                              Comment

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