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Washington DC and The Holy Land>Trade Wars are good and easy to win. Dow drops 950 points.
Lex Luthor 01:51 PM 08-05-2019
Thanks Donald!

Originally Posted by :
Dow plunges more than 950 points after China devalues its currency

The Dow tumbled more than 950 points and global stocks were in disarray on Monday after China escalated the trade war with the United States.

The Chinese government devalued the yuan to fall below its 7-to-1 ratio with the US dollar for the first time in a decade Monday. A weaker currency could soften the blow the United States has dealt China with its tariffs.

The weak yuan ignited fear on Wall Street that a currency war has begun or that the United States would respond with even higher tariffs, prolonging the standoff with China and potentially weakening the global economy. Investors are particularly concerned that the Trump administration could try to devalue the dollar, sparking a currency war that could weaken Americans' purchasing power.

"Risks of Trump intervening in foreign exchange markets have increased with China letting the yuan go," wrote Viraj Patel, FX and global macro strategist at Arkera, on Twitter. "If this was an all out currency war - the US would hands down lose. Beijing [is] far more advanced in playing the currency game [and has] bigger firepower."

President Donald Trump once again called China a currency manipulator on Monday, saying the yuan devaluation was a "major violation." Trump has long attacked China for its currency policy, even though the Treasury has refrained from officially labeling the country a currency manipulator.

China announced Monday its companies have halted purchases of American agricultural goods. That helped to drive stocks even deeper into the red.

US stocks were sharply lower, with the Dow (INDU) falling more than 950 points, sinking below 26,000 points for the first time since June. The Dow was on pace for its third-worst point drop in history.

The S&P 500 (SPX) traded 3.7% lower, and could post its worst day of 2019. The Nasdaq Composite (COMP) fell more than 4%, its biggest decline since October 24, 2018. If the Nasdaq closes lower Monday, it will have logged its longest losing streak since November 2016, when it fell for nine-consecutive days in the lead-up to the presidential election.

The S&P 500 is on track for six consecutive down days for the first time since October, while the Dow is on track for its longest losing streak since March. Last week, the S&P 500 and the Nasdaq Composite logged their worst week of the year last week.

Hit particularly hard were tech stocks. Apple (AAPL), Intel (INTC), Microsoft (MSFT), Nvidia (NVDA) and Advanced Micro Devices (AMD) were among the biggest losers on Monday.

The VIX (VIX) volatility index soared more than 30% to a seven-month high. The CNN Business Fear & Greed Index is indicating "Extreme Fear."
Asian markets all fell more than 1.6% Monday, and Hong Kong's Hang Seng closed down 2.9% as protests continue in the region. In Europe, London's FTSE 100 finished down 2.5%. Germany's DAX and France' Cac 40 closed 1.8% and 2.2% lower, respectively.

US government bonds rose and yields fell as traders looked for safe investments. The 10-year Treasury yield declined to 1.7413%. The yield curve — the difference between shorter and longer-term bond yields — grew the widest since April 2007. That inversion of the yield curve has predated every past recession.

Escalating the trade war

The yuan weakened sharply after the People's Bank of China set its daily reference rate for the currency at 6.9225, the lowest rate since December. The central bank said in a statement that Monday's weakness was mostly because of "trade protectionism and new tariffs on China." President Donald Trump threatened a new round of tariffs on the country last week.
Devaluing the yuan is one way China has of retaliating against the tariffs. A weaker currency helps Chinese manufacturers offset the costs of higher tariffs.

Analysts at Capital Economics said the move showed that Beijing has "all but abandoned" hopes for a trade deal with the United States.

In US economic data, the non-manufacturing index for July from the Institute of Supply Management undercut consensus expectations, which didn't help matters.
https://www.cnn.com/2019/08/05/inves...day/index.html
[Reply]
Lex Luthor 01:53 PM 08-05-2019

When a country (USA) is losing many billions of dollars on trade with virtually every country it does business with, trade wars are good, and easy to win. Example, when we are down $100 billion with a certain country and they get cute, don’t trade anymore-we win big. It’s easy!

— Donald J. Trump (@realDonaldTrump) March 2, 2018


[Reply]
lawrenceRaider 01:54 PM 08-05-2019
Lex loves China dongs.
[Reply]
digger 01:57 PM 08-05-2019

[Reply]
Bowser 01:58 PM 08-05-2019

via GIPHY


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Lex Luthor 02:00 PM 08-05-2019
From May of 2018, prior to Trump's latest display of economic buffoonery:

Originally Posted by :
Each Word of Trump's Tariff Tweets Wiped $13 Billion Off Stocks

It was a total of 102 words that erased about $1.36 trillion from global stocks this week.

Equity markets across the world were roiled by President Donald Trump’s tweets Sunday that he would boost tariffs on Chinese goods. Not only did they spark losses, but volatility came roaring back with a vengeance, with the Cboe Volatility Index rising 50 percent in two days to breach 20 for the first time since January.



Risks surrounding U.S.-China trade relations -- which were not on investors’ radar as late as last week -- came flooding back. Markets had been lulled into a state of complacency in recent weeks as confidence grew the trade discussions were going well, major central banks were dovish and U.S. corporate earnings were coming in better-than-expected.

“The latest shift adds a new dimension of uncertainty to what most market participants were assuming was a done deal,” said Eleanor Creagh, Sydney-based Australia market strategist at Saxo Capital Markets. “Something shifted over the weekend, and it could be wishful thinking to keep drinking from the glass half full.”

All 102 words that shook global markets:







Depending on who you talk to, the events of the last two days are only a speed bump that gave back a fraction of this year’s market rally or have raised a valid question of whether the bull market can continue.

Kerry Craig, a global market strategist at JPMorgan Asset Management, still believes a trade deal can be reached, but it could take longer than expected. “The pull back in markets was due given how hard global equities had rallied and investors may have been looking for an excuse to take some profits,” he said.

Given the slump in shares, it’s clear some investors are repositioning.

“My feeling is that investors are lightening their portfolios as a precaution,” said Jeffrey Halley, senior market analyst at Oanda Asia Pacific.

Halley sees a “middle path” for markets with an underlying sentiment that a deal will get done. And, sparks of activity could lift growth and earnings expectations -- “I wouldn’t abandon the equity markets,” said JPMorgan’s Craig.

Furthermore, the dovish central bank pivot means its a different market now than last year when both the U.S. and China were tightening policy, according to Alex Wong, Hong Kong-based director of asset management at Ample Capital Ltd.

“Even if no deal could be reached, the impact won’t be that severe,” Wong said in a telephone interview. “I’m not that worried.”

Everything now depends on what happens this Thursday and Friday when negotiations between two of the world’s largest economies meet in Washington.

“This sets us up for a potentially very emotional week,” Oanda’s Halley said.
https://www.bloomberg.com/news/artic...ion-off-stocks
[Reply]
Msmith 02:01 PM 08-05-2019
Why China’s falling yuan could be good for U.S. stocks: strategist

“It could be good for U.S. stocks in two ways,” Colas said. “First, yields will decline as global investors seek out safe-haven assets like Treasuries. That helps valuations. Second, it accelerates the move out of global equities (especially emerging markets) and into U.S. stocks.”

The 10-year Treasury yield (^TNX) moved lower on news of the yuan devaluation, dropping to 1.782%, marking its lowest level since October 2016.

In terms of areas of the market that may benefit the most, Colas pointed to yield plays.

“The usual yield plays will work first: Utilities, Consumer Staples and Real Estate,” he said. “Probably in that order.”

Link:https://finance.yahoo.com/news/china...132255907.html
[Reply]
BleedingRed 02:04 PM 08-05-2019
Lmao and then tomorrow will happen.
[Reply]
Prison Bitch 02:06 PM 08-05-2019
Lex didn’t mind Obummer tariffs. Just Trump ones.
[Reply]
alpha_omega 02:08 PM 08-05-2019
Originally Posted by Lex Luthor:
Thanks Donald!
.....
Superstar!
[Reply]
Lex Luthor 02:08 PM 08-05-2019
The problem is that Trump doesn't understand who pays for tariffs.

Originally Posted by :
Fact check: Trump says China is paying for his tariffs. He's wrong.

President Donald Trump told an Ohio audience Thursday that China is footing the bill for the massive tariffs he's slapped on foreign goods coming into the United States.

“Don’t let them tell you, the fact is — China devalues their currency, they pour money into their system. Because of that, you’re not paying for those tariffs. China’s paying for those tariffs,” the president said, hours after announcing the new set of tariffs on Chinese goods. “Until such time as there is a deal, we will be taxing the hell out of China.”

But economists say that's not how tariffs work, and that Americans are the ones footing the bill so far.

The facts

Trump has long championed his methods — last year he dubbed himself "Tariff Man" — as righting wrongs inflicted on the U.S. by other countries. But most economists agree a trade war hurts the economy and consumers alike.

Tariffs are taxes on goods coming in to the U.S., paid by the importer. The exporter — in this scenario, China — doesn't pay a thing.

"All of the U.S. tariffs have been passed to U.S. importers, U.S. retailers, U.S. consumers,” said Stephen Redding, a Princeton University economist and author of a recent study analyzing the effects of Trump’s trade war in 2018. “Somebody in the U.S. is paying higher prices.”

Trump's suggestion Thursday that China’s currency devaluations are paying for tariffs doesn't hold water either, Redding said.

"Although there has been a small devaluation of the Chinese currency, that’s just too small to make any difference," he said.

Tariffs are designed to make foreign-made goods more expensive, boosting domestic producers or, sometimes, forcing international exporters to slash prices to stay competitive. But there's no evidence China is cutting prices to accommodate Trump’s tariffs.

Instead, Americans are footing the bill, Redding and his colleagues concluded after analyzing 2018 customs data. Americans are paying an additional $832 each year per household, the researchers found.

A second study with a different methodological approach that was published in the National Bureau of Economic Research in March found that 100 percent of the cost of the 2018 tariffs were passed on to U.S. consumers.

This wasn't exactly what researchers expected, Redding added.

“In traditional economics, the tariff would be shared by consumers in the U.S. and Chinese exporters,” he said. “But when we went into the data, so far the entire tariffs have been passed through” to Americans.
https://www.nbcnews.com/politics/don...-he-s-n1038751
[Reply]
Lex Luthor 02:11 PM 08-05-2019
Originally Posted by Msmith:
Why China’s falling yuan could be good for U.S. stocks: strategist

“It could be good for U.S. stocks in two ways,” Colas said. “First, yields will decline as global investors seek out safe-haven assets like Treasuries. That helps valuations. Second, it accelerates the move out of global equities (especially emerging markets) and into U.S. stocks.”

The 10-year Treasury yield (^TNX) moved lower on news of the yuan devaluation, dropping to 1.782%, marking its lowest level since October 2016.

In terms of areas of the market that may benefit the most, Colas pointed to yield plays.

“The usual yield plays will work first: Utilities, Consumer Staples and Real Estate,” he said. “Probably in that order.”

Link:https://finance.yahoo.com/news/china...132255907.html
Kudos for being the only person who responded with an intelligent attempt at a rebuttal. The rest of the responses have been exactly what I would expect from Trump supporters.
[Reply]
patteeu 02:30 PM 08-05-2019
Originally Posted by Lex Luthor:
The problem is that Trump doesn't understand who pays for tariffs.



https://www.nbcnews.com/politics/don...-he-s-n1038751
Trump's statement is more nuanced and sophisticated than the explanation in this article. The administration's argument is that China is lowering prices and devaluing their currency so that the cost impact to end consumers is close to zero. If that's true, then even though the tax is collected from the importer, the price he pays to China for the product is lowered enough (by China's cost absorbing actions) to make up for it and China ultimately bears the burden of the tariff.
[Reply]
SuperBowl4 02:34 PM 08-05-2019
WAR PIGS - BLACK SABBATH
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Marcellus 02:37 PM 08-05-2019
Originally Posted by BleedingRed:
Lmao and then tomorrow will happen.
I would say I cant believe these dumb motherfuckers fall for this shit every time but then again look who it is.

Dow closes down, Lex sprints to the computer to post a thread about it full well knowing it will be back up again before long.

Fucking morons rooting against the country on a daily basis.
[Reply]
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