The Financial Collapse of 2001 Unwinding Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Financial Collapse of 2001 Unwinding

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: elmatador who wrote (1226)	10/16/2018 4:43:33 PM
From: Snowshoe	Read Replies (2) of 13808

I do wonder how much longer Xi can hold it together... How Trump’s Trade War Is Driving China Nuts: Chinese leader Xi Jinping has reacted to American pressure with a level of desperation that is good for neither Washington nor Beijing. politico.com Initially, Xi’s government figured the president was bluffing. Beijing’s calculation was that, sure, Trump might slap some tariffs on Chinese goods, but it’s a mere negotiating tactic – his “Art of the Deal” writ large. After all, past American presidents had often attacked China on the campaign trail—only to make nice while in office. Xi’s men held it together as Trump slapped taxes of 25 percent on steel and 10 percent on aluminum. They figured Trump’s initial attack on $50 billion of Chinese imports in June would satisfy Peter Navarro and other protectionist voices in the White House. Hardly, as Xi’s team is realizing. If the extra $200 billion of levies Trump tossed Beijing’s way in September weren’t reality-check enough, Mike Pence’s Oct. 4 “we-will-not-stand-down” speech suggests 2019 could get even worse for Beijing. ***** A key element of moving China beyond boom-and-bust cycles and making growth more productive is tackling dueling bubbles in credit, debt and property prices. That means increasing transparency, policing an out-of-control $20 trillion shadow-banking sector and dropping support for state-owned enterprises to create a vibrant private sector. Such upgrades will necessitate slower growth -- 5 percent or below. Yet they are now largely on hold. Xi reverting to the stimulus-at-all-costs playbook that got China into financial hot water is a worrisome bookend for the Deng revolution. Xi is ensuring that when China’s debt-excess reckoning comes, what economists call a “Minsky moment,” it will be bigger, more spectacular and more globally impactful. If you thought the “Lehman shock” of 2008 was scary, wait until the No. 2 economy with $14 trillion of annual output goes off the rails.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next