Create Account



The Jungle is self-supported by showing advertisements via Google Adsense.
Please consider disabling your advertisement-blocking plugin on the Jungle to help support the site and let us grow!
We also show significantly less advertisements to registered users, so create your account to benefit from this!
Questions or concerns about this ad? Take a screenshot and comment in the thread. We do value your feedback.
China Trade War - Explained

#1
(This post was last modified: 08-05-2019, 03:12 PM by HURRICANE!!!.)

This guy is really good at explaining the US-China Trade War as well as other things like what caused Venezuela's economic crash.  
**Spoiler Alert -- he actually favors the position Trump is taking on the trade war.**


"US China Trade War Explained -Who Needs Who?"

https://www.youtube.com/watch?v=DxN12jzHrqI
Reply

We show less advertisements to registered users. Accounts are free; join today!


#2

It's a pretty good video and a fairly good explanation regarding this current trade war.  I wish he would have explained about China devaluing their currency.  In the short term these latest developments are going to be painful and could hurt some people which is surprising since we will be soon heading into election season.  In the long term however China has much more to lose than we do.


There are 10 kinds of people in this world.  Those who understand binary and those who don't.
Reply

#3

China fixed their currency after being called out by their daddy. Step off the ledge Hurricane!
Reply

#4

thanks for video really good breakdown I even went and watched some of his other videos
[Image: 5_RdfH.gif]
Reply

#5

(08-06-2019, 07:01 AM)StroudCrowd1 Wrote: China fixed their currency after being called out by their daddy. Step off the ledge Hurricane!

How did they fix it?   It's still 7.02 Rmb to the dollar, versus 6.88 to the dollar two weeks ago.
Reply

We show less advertisements to registered users. Accounts are free; join today!


#6

I’m waiting for a Democrat to advocate for the Chinese because Trump.
Reply

#7

(08-06-2019, 07:01 AM)StroudCrowd1 Wrote: China fixed their currency after being called out by their daddy. Step off the ledge Hurricane!

It's still way over valued when considering their debt.
[Image: Ben-Roethlisberger_Lerentee-McCary-Sack_...ayoffs.jpg]
Reply

#8

(08-15-2019, 08:11 AM)homebiscuit Wrote: I’m waiting for a Democrat to advocate for the Chinese because Trump.

I think a lot of people are rooting for a recession.
Reply

#9
(This post was last modified: 08-15-2019, 12:17 PM by homebiscuit.)

(08-15-2019, 12:11 PM)The Real Marty Wrote:
(08-15-2019, 08:11 AM)homebiscuit Wrote: I’m waiting for a Democrat to advocate for the Chinese because Trump.

I think a lot of people are rooting for a recession.

Yeah, wealthy liberals who won’t struggle to provide for their families. All in the name of compassion, of course.
Reply

We show less advertisements to registered users. Accounts are free; join today!


#10

(08-15-2019, 08:45 AM)B2hibry Wrote:
(08-06-2019, 07:01 AM)StroudCrowd1 Wrote: China fixed their currency after being called out by their daddy. Step off the ledge Hurricane!

It's still way over valued when considering their debt.

Actually, they devalued their currency in order to counter the tariffs.

What we are seeing in the financial world is the fact that China is hurting because of the tariffs, and that is affecting the global economy.  Many countries have lowered their prime interest rate to the point where some are even in negative territory.  That essentially means that buying treasury bonds from those countries means that you get charged for loaning your money to the government rather than being paid a dividend.  We saw our stock market take a major hit over the last couple of weeks because a lot of foreign investors are pouring money into our treasury bonds because they still offer a positive rate of return (not much right now).

Because of all that the yield on a 10 year treasury bond fell below the yield on a 2 year note (aka an inverted yield).  When this happens it is typically considered to be an indicator of a recession.

The thing is, all other indicators still point to a strong economy.  Low unemployment numbers, good earnings data from retailers (Walmart had a good report today), etc.  I think that the market will bounce back eventually from this, but it will remain volatile over the next couple of weeks.

The other problem for China right now is the chaos in Hong Kong.  Should the communist Chinese military use force to quell the protests in Hong Kong it could get really ugly not only for our markets, but the global economy overall.


There are 10 kinds of people in this world.  Those who understand binary and those who don't.
Reply

#11

(08-15-2019, 04:31 PM)jagibelieve Wrote:
(08-15-2019, 08:45 AM)B2hibry Wrote: It's still way over valued when considering their debt.

Actually, they devalued their currency in order to counter the tariffs.

What we are seeing in the financial world is the fact that China is hurting because of the tariffs, and that is affecting the global economy.  Many countries have lowered their prime interest rate to the point where some are even in negative territory.  That essentially means that buying treasury bonds from those countries means that you get charged for loaning your money to the government rather than being paid a dividend.  We saw our stock market take a major hit over the last couple of weeks because a lot of foreign investors are pouring money into our treasury bonds because they still offer a positive rate of return (not much right now).

Because of all that the yield on a 10 year treasury bond fell below the yield on a 2 year note (aka an inverted yield).  When this happens it is typically considered to be an indicator of a recession.

The thing is, all other indicators still point to a strong economy.  Low unemployment numbers, good earnings data from retailers (Walmart had a good report today), etc.  I think that the market will bounce back eventually from this, but it will remain volatile over the next couple of weeks.

The other problem for China right now is the chaos in Hong Kong.  Should the communist Chinese military use force to quell the protests in Hong Kong it could get really ugly not only for our markets, but the global economy overall.

Agree with most everything here. This is an unusual market and susceptible to the tiniest bit of news. With that said, all signs point to a very strong economy with strong consumer confidence with no signs pointing to deflation. There is only one historical indicator pointing to a recession, and it has been wrong exactly one time before. I think this is another one of those times. Perhaps the Feds should not wait until Sept. to implement additional policy for more long term correction? If just a trickle of news comes out saying a China/U.S. deal is imminent, the market will explode!
[Image: Ben-Roethlisberger_Lerentee-McCary-Sack_...ayoffs.jpg]
Reply

#12
(This post was last modified: 08-20-2019, 08:32 PM by EricC85.)

I don' t understand why a country would devalue their currency. I know there's some economic answer it just baffles me, how is making your currency less valuable an advantage?
[Image: 5_RdfH.gif]
Reply

#13
(This post was last modified: 08-22-2019, 03:25 PM by mikesez.)

(08-20-2019, 08:32 PM)EricC85 Wrote: I don' t understand why a country would devalue their currency. I know there's some economic answer it just baffles me, how is making your currency less valuable an advantage?

It means that your stuff gets cheaper for other countries to buy, but stuff that you get from other countries gets more expensive for you.
This seems bad for average people, but, from a government planning perspective, your workers get busier, but you don't have to rely on those same workers to buy the stuff they're making. 
There are other reasons to do it. One could be that the government, or people who influence the government, are deeply in debt.
For the average Joe on the street, prices for things that are produced and consumed locally stay the same, but prices for things that have a large import/export market go up. The average Joe also will be steered towards purchasing things that are produced domestically.
My fellow southpaw Mark Brunell will probably always be my favorite Jaguar.
Reply

We show less advertisements to registered users. Accounts are free; join today!


#14

(08-14-2019, 08:22 PM)EricC85 Wrote: thanks for video really good breakdown I even went and watched some of his other videos

Yes, I did the same thing.  I actually came across his video related to the Economic Downfall of Venezuela Explained and then it lead me to this China Trade War and others as well.
Reply

#15

(08-20-2019, 08:32 PM)EricC85 Wrote: I don' t understand why a country would devalue their currency. I know there's some economic answer it just baffles me, how is making your currency less valuable an advantage?


You know when you see that gas station that has prices 10 cents lower than all the others and it has cars lining up in the lot? 

Something like that.
Reply

#16

(08-22-2019, 01:29 PM)Senor Fantastico Wrote:
(08-20-2019, 08:32 PM)EricC85 Wrote: I don' t understand why a country would devalue their currency. I know there's some economic answer it just baffles me, how is making your currency less valuable an advantage?


You know when you see that gas station that has prices 10 cents lower than all the others and it has cars lining up in the lot? 

Something like that.

Somewhat.

To answer Eric's question in a nutshell.

Devaluing their currency means that their exports are less expensive, therefor they are more attractive to other countries.  At the same time imports to that country become more expensive.  It also reduces the burden of the country's debt.  As an example, an interest payment of $1 million dollars becomes worth $500,000 if the country reduced the value of their currency in half.

This article explains it pretty well in layman's terms.


There are 10 kinds of people in this world.  Those who understand binary and those who don't.
Reply




Users browsing this thread:
1 Guest(s)

The Jungle is self-supported by showing advertisements via Google Adsense.
Please consider disabling your advertisement-blocking plugin on the Jungle to help support the site and let us grow!
We also show less advertisements to registered users, so create your account to benefit from this!
Questions or concerns about this ad? Take a screenshot and comment in the thread. We do value your feedback.


ABOUT US
The Jungle Forums is the Jaguars' biggest fan message board. Talking about the Jags since 2006, the Jungle was the team-endorsed home of all things Jaguars.

Since 2017, the Jungle is now independent of the team but still run by the same crew. We are here to support and discuss all things Jaguars and all things Duval!