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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
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stevieray 04:36 PM 08-05-2019
Originally Posted by Lex Luthor:
The rest of the responses have been exactly what I would expect from blacks, mexicans or jews etc etc.
Exposing Lex's BS.
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LiveSteam 04:41 PM 08-05-2019
Lex

























...





You ignorant slut
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chiefzilla1501 04:46 PM 08-05-2019
Originally Posted by Over Yonder:
I don't know what Trump understands or don't understand (I would bet a nickel you don't either), but I think the average tree stump understands who pays for tariffs. It's the consumer that sells their own country out for cheap goods imported from foreign countries.

I pay zero tariffs on products produced here in America from American made materials. I am weak on the economics side of life, but am I incorrect?
Just because a product was produced here doesn't mean parts weren't produced elsewhere. Even if they don't source foreign, a shock to the supply chain probably impacts you indirectly
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petegz28 04:48 PM 08-05-2019
So the big run up from December didn't happen?
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petegz28 04:49 PM 08-05-2019
I for one put in a lot of buy orders at the end of the day. And will continue to do so as long as the market "tanks"
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chiefzilla1501 04:52 PM 08-05-2019
The problem I have with trumps tariffs is Trump doesn't seem to get that American businesses pay the tariff, just as much if not more than China. His conservative advisors have pushed back on him. So has most of his GOP congress. Even reagan knew that tariffs were a negotiation tool, they are not a punishment in and of itself. Trump actually thinks we're punishing China and collecting tax revenue at the same time. That's flat out wrong. We may be punishing China but any tax benefit has been far offset by the cost of economic damage
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JohnnyHammersticks 04:58 PM 08-05-2019
Ever notice how when the Dow set multiple all-time records in the last month you didn't hear a peep from the libtards (or they credit it to Big Mike's twink husband), but whenever there's a correction they start squealing like Ned Beatty in Deliverance? :-)


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LiveSteam 05:06 PM 08-05-2019
Originally Posted by chiefzilla1501:
The problem I have with trumps tariffs is Trump doesn't seem to get that American businesses pay the tariff, just as much if not more than China. His conservative advisors have pushed back on him. So has most of his GOP congress. Even reagan knew that tariffs were a negotiation tool, they are not a punishment in and of itself. Trump actually thinks we're punishing China and collecting tax revenue at the same time. That's flat out wrong. We may be punishing China but any tax benefit has been far offset by the cost of economic damage
When am I going to feel the tariff impacts?
We've only got 12 years left before the world is uninhabitable
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Titty Meat 05:09 PM 08-05-2019
Why does the OP care about the stock market? Hes a sandwich artist making 8.50 an hr. You dont own any stocks bro
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petegz28 07:51 PM 08-05-2019
China sets its yuan midpoint at stronger than 7 per dollar
https://www.cnbc.com/2019/08/06/chin...er-dollar.html
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petegz28 07:55 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
This guy makes an excellent point. Other things to keep in mind are the US holds all the cards for starters. The Chinese economy NEEDS US $'s. There was a great interview on CNBC today with a guy that broke it all down.

Don't listen to these loudmouths that want to blame Trump. The reality of it all is an Elizabeth Warren Presidency would be twice as harsh on China than Trump is.
[Reply]
petegz28 07:56 PM 08-05-2019
Originally Posted by Titty Meat:
Why does the OP care about the stock market? Hes a sandwich artist making 8.50 an hr. You dont own any stocks bro
My favorite part is he posts a chart showing a 10+ trillion $ gain then cries about a $1 tril loss....:-)
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IowaHawkeyeChief 07:57 PM 08-05-2019
Originally Posted by patteeu:
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.
Correct, and China is doing everything it can to mitigate the potential damage to their economy, long term. Short term, devaluation hurts them, and helps absorb the cost of goods for the consumer, however, it's way better than having the supply chain for goods move to other countries in Asia that don't have tariffs. China has no choice, they are trying to play 4 corners and are hoping Trump loses next fall. They may not be able to wait that long. If he wins, China will be in trouble. If he loses, despite the Democrats being for labor for years, they will most likely fold so they can get a quick sugar high for their new term. We will then be back to China sticking their dick in our ass for another 4 years...
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IowaHawkeyeChief 07:59 PM 08-05-2019
Originally Posted by JohnnyHammersticks:
Ever notice how when the Dow set multiple all-time records in the last month you didn't hear a peep from the libtards (or they credit it to Big Mike's twink husband), but whenever there's a correction they start squealing like Ned Beatty in Deliverance? :-)

and CNN puts the banner in the corner showing the decline, but never the recovery...
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petegz28 08:00 PM 08-05-2019
Here is the interview I heard today..this guy nails it on why China is essentially ****ed!

China’s currency would collapse 30% to 40% if they stopped supporting it
https://www.cnbc.com/2019/08/05/kyle...t-support.html

Hedge fund manager and Hayman Capital Management founder Kyle Bass said on Monday that without state support, China’s currency would plunge.

“What’s happening in China is they have to have dollars to sell to buy their own currency to hold it up. If they were to ever free float their currency, I think it would drop 30% or 40%,” Bass told CNBC’s “Closing Bell.”

“And the reason is they claim to be 15% of global GDP in dollar terms, but less than 1% of global transactions settled in their own currency,” Bass added. “And so, they prop their currency up...everyone calling them a currency manipulator – they are trying to hold this whole thing together.”

Bass’s comments came after the Chinese yuan crossed a closely watched barrier against the U.S. dollar. The onshore Chinese yuan changed hands above 7 against the dollar, the currency’s weakest levels against the greenback since 2008.

The new lows for the yuan came after U.S. President Donald Trump unexpectedly announced fresh tariffs on Beijing last week that are set to take effect from Sept. 1. China on Monday said it could slap tariffs on U.S. agricultural goods that it bought recently, state-run media Xinhua reported.

Bass, known across Wall Street for his prescient bets against subprime mortgages during the financial crisis in 2008, is also a noted China bear. The hedge fund manager has previously admonished American corporations for pushing Trump to strike a deal with Beijing too quickly and told CNBC as recently as June that the U.S. has leverage over China and should pressure negotiators into a better settlement.

In July, Bass criticized the Chinese for failing to honor their promises in trade agreements.

“Every deal that the Chinese have signed up with us since their inception into the WTO since 2001, China never lives up to their promises,” he said on July 25. “At some point in time, one of our administrative officials is going to hold their feet to the fire and this is kind of a battle of cultures because the Communist Party doesn’t want to submit themselves to anything measurable or enforceable.”


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