/biz/ - Business & Finance

>>9566470
>pic related
why are you here?

>>9566482
Saying I told you so

>>9566496
Don't you have an Alex Jones video to watch?

>>9566530
>I source Vox
>You tell me to go back to Alex Jones

Are you autistic or something?

Truth hurts doesn’t it bears?

>>9566470

The US-China situation was a thing long before Trump took office.

The US has been enjoying cheap imports from China for a long time because China has deliberately de-valuing the yuan to keep trade going. The way in which they've been keeping the yuan low is by buying US treasury bonds with the dollars they make with their exports, essentially making the US become indebted to China. Paradoxically the cheap US imports are in a large part supported by loans from the country they are importing from. It's a huge cyclic dependency that, if left unchecked, will collapse catastrophically, making the 2008 housing market crash look pretty tame. What Trump is trying to do is uncouple the dependency, which is the correct move. But the situation is very delicate and one wrong move could bring the whole thing tumbling down. My bets are that Trump is not the delicate type.

>>9566796
>enjoying cheap imports
Does anyone actually enjoy the garbage we import from China?

>>9566796
Source?

>>9566939

I bet pretty much every toy you had growing up had a little label somewhere saying "Made in China". On top of that electronics like TV's, CD players, up until recently iPhones etc. I'm talking like, for the last 30 years this has been happening.

>>9566942
Economic text books, google, anything reporting on Trump on China. The problem is the information is all there, but very few people actually understand it and what the implications are.

Here's Trump recently talking about the US-China 'trade deficit' - Trade deficit is when one country exports to another while there is little trade going back. Normally these things self-correct, but China is artificially maintaining the imbalance to ensure they have a trading partner.
https://www.cbsnews.com/news/trump-says-china-trade-deficit-shouldve-been-fixed-years-ago/

Here's a great article about US-China debt, parts to note;
>China is also responding to accusations of manipulation.
>China had to lower the yuan to remain competitive
>Owning U.S. Treasury notes helps Chinas economy grow by keeping its currency weaker than the dollar
>China would not call in its debt all at once. If it did so, the demand for the dollar would plummet like a rock

https://www.thebalance.com/u-s-debt-to-china-how-much-does-it-own-3306355

If you're genuinely interested in learning more, read a book called Naked Money. It's very enlightening

>>9567197
Given China artificially manipulating Yuan value do you think it might lead to hyperinflation in China?

>>9567253

Honestly, i have no idea, I'm not an economist. I suppose it all depends on how the 'trade war' unfolds and how China responds. They'd have to make radical changes to their monetary policies to avoid it though.

>>9567380
I know you put it in quotes but in all honesty the idea of this being a trade war is just a media invention (hence why I called it a meme) and that just makes it so that it shouldn’t really be called that when addressing it in a serious matter.