iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
18,854 Blog Posts

China Retaliates Very Weakly Against Trump’s Bigly Tariffs

REMINDER: This is not a trade war. This is not a trade war. This is not a trade war. This is not a trade war. This is not a trade war. This is not a trade war. This is not a trade war. This is not a trade war. This is not a trade war.

In retaliation against Trump’s steel tariffs and the $60 billion in levies affixed to IP technology, China targeted 128 US products with taxes for a grand total of $3b.

REMINDER: We hold all the cards. We hold all the cards. We hold all the cards. We hold all the cards. We hold all the cards. We hold all the cards. We hold all the cards. We hold all the cards. We hold all the cards. We hold all the cards.

The Chinese-US trade deficit came in at a record last year — upwards of $375 billion — up 8% during Trump’s first year in office. ¬†Overall, US deficits rose to a 9 year high of $566 billion, in a transfer of wealth for the ages. While China might pretend to have muscles in this ‘trade war’ against the US, they have the most to lose. The US dollar is still currency reserve and because they’re totally dependent on US markets to keep their factories running and pitched forks at bay, they must maintain their large treasury holdings and bid for the dollar, whenever it should fall.

In other words, we have China by the short hairs. There is literally nothing they can do other than posture. Should they truly engage in a tit for tat trade war with man child Trump, they might see their fixed economy unglued, leading to a repatriation and currency crisis, redux 2016, which would cause their economy and debt burdens to bubble to the surface and completely wreck their piece of shit economy.

Dow futures are -150, Nasdaq -56. Gold and WTI are very strong and Bitcoins are being ransacked.

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6 comments

  1. acehood

    Set trippin.

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  2. bob smith

    Question: Where are the BTC, XRP, etc. fans now? Answer: still in their mom’s basement, where they will dwell until their mom’s Credit Card is paid off… a long, long time from now…

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  3. roundwego

    Vix to the moon

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  4. sarcrilege

    All wars are banksters’ wars. Banksters love war. Any war. War on trade deficit is great. It should help with getting inflation going because that’s the amerikan way. First, banksters rob the people by charging them negative interest on their savings and once they have no savings gubermint ransacks their income with runaway price increases. Awesome.

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  5. soupbone

    The chart tells all and is the founding reason zirp was tried for so long. I suppose the Eurozone chart is the same or worse.

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    • 0 Deem this to be "Fake News"