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
23,433 Blog Posts

Report: China is Fully Prepared for Escalated Trade War

The Editor in Chief of the China Globe Times has been making waves on Twitter for his seemingly ‘in the know’ reports on the US-China trade deals. Judging by his recent tweets, the trade war is about to take a turn for the worse.

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14 comments

  1. juice

    the damn Chinese have done their homework and read the Donald’s ‘Art of the Deal’ as well as Sun Tzu’s ‘the Art of War’

    get ready for a whole lot of Art

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  2. teslawasright

    The Le Fly – when is gold going to rip tits to $3000?

    This musical chairs has to come home to roost. Shit celery is $3.99 WTF

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  3. ericbakerbruce
    ericbakerbruce

    The great Oglala Lakota chief Low Dog – “Today is a great day to buy”

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  4. edge

    The same setup that has driven this market for ten years is intact.
    The biggest difference is that manipulation to the upside has increased and both the Chinese and The Turd want to appear more badass than they really are.
    Raise a little cash, maybe a few hedges, but mainly be long.

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  5. tha pirate

    Should the USA allow itself to CONTINUE get bullied & taken advantage of by China as it has the last couple decades justbecause a few greedy pigs on Wall Street can’t stand a pullback of any kind?

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  6. numbersgame

    Fly, thanks for pointing this out.

    OF course, there is no way the editor would be allowed to post this without full consent of the Chinese government. So the real question: for what purpose is the Chinese government sending this message? The obvious purpose is to make it seem like they are fully willing to walk away. I think it is a bluff.

    Think about the conssequences of a no-deal, full-on trade war. For the US it is likely a recession, and Trump will lose about the only reason that Independants have for keeping him in office. But now think about it from the Chinese side.

    They have a President *for Life*, It is not as simple as the party in power switches, because there is only one party. They have a 1,4 billion people that they need to keep reasonably happy. They have very little freedom, but they can still presently survive. China has not developed their internal economy enoguh to go through a major recession without people literally dying. Their debt problem is also bad.

    A Great Recession in the US would not fundamentally change things here. Perhaps it would just shift the baalnce of power between econmic classes more towards the middle again. However, in China it could bring down the goverenment.

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    • numbersgame

      Read this for some background:
      https://qz.com/741931/qza-with-hu-xijin-editor-in-chief-of-global-times/

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    • donkeyboy

      I like your reply. I want more substance for this however: “…there is no way the editor would be allowed to post this without full consent of the Chinese government.”

      Is there any great links that outline this problem? I am obviously aware of history and how communist regimes are generally operated but I would love to be able to leverage actual examples of current Chinese crackdown.

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      • numbersgame

        Well, that was based on my own thinking. Of course, any intelligent person will question their own biases, so I did some resrearch after I posted and found the interview above that seems to have anticiapted your question.

        One clarification: I do think that base on the 2 countires hard-lines stance, ther is very little chance of a trade deal happening this week. Besat case is that Trump postponse th deadline based on improving trade talk progress. That’s the stanadard playbook now, but the market always seesaws anyway.

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    • ferd

      It may be that the Chinese system could tolerate real stress a lot better than you think – – they’ve lived it in the recent past. While we are so soft that we go all vagina hat if someone is rude.

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      • numbersgame

        China’s method of dealing with economic stress is the same as the US: lots of debt propping up zombie businesses. In the long run, sinking money in unprofitable investements is not a constructive, as it only pushes the problem down the road, at the same time magnifyign the negative consequences. China has a huge debt problem as well as the US, but it is more at the “state” level than the federal one. However, it makes no differnce as they’ll still ahve to be bailed out.

        Also, if someoen raped you and nobody gave a shit, then you’s probbaly go “all ass-hat.” For example, rape is sexual intercourse without consent. Federal law states that intoxicated peopel can’t give consent, but in some states like North Carolina, this isn;t the case. Hope you don’t have a daughter going to Duke University…

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        • ferd

          Ah, so that’s what rape is. Thanks.

          But consider not posting answers to the voices in your head in some other forum. Perhaps a therapist.

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  7. awanka

    Ah, Mr. Fly. The chicoms are at our doorstep, and I don’t see either side blinking. I’m guessing trade talks will collapse and everything will rip to new highs, because we’re living in an Alice in Wonderland market.

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