U.S. labels China a currency manipulator; China halts U.S. farm purchases

Quite frankly, Trump's in over his head.

While the US and China might have similar levels (if differing types) of 'ammo' for this war, Trump's a weekend warrior paintball player going up against experienced Special Forces.

What's he going to do next, complain that he's being treated 'unfairly?'

@ David Varnes, you hit the nail on the head. China owns so much US treasury debt that they're jamming it down Trump's throat. And if he thinks he can win this currency war, he's got the IQ of an ant.

Trade wars are easy to win. 

Health care is easy to fix. 

Mexico will pay for the wall. 

I'm the only one who can fix it. 

Had enough yet, America?

So much for “trade wars are easily won”.

China clearly just had enough of these stupid threats and games. Xi’s style is not to jump on twitter and sprout bs. He just stops importing US produce and drops the yuan.

@ David Varnes, you hit the nail on the head. China owns so much US treasury debt 

Treasury debt is the Achilles heel of the US.

Trade wars are easy to win. 

I remember that one.

Has he added another “Who knew?” yet?

Quite frankly, Trump's in over his head.

This is true. He's a wannabe master negotiator, they actually are master negotiators. If he had competent advisors, and knew how to listen to them, it wouldn't be so much a problem that he's in over his head. But his advisors got him into this, and his ineptitude has made it worse, and the just keeps trying to wield the only tools he knows - rhetoric and tariffs.

The problem is, he's actually right about China on a lot of things. They've already been on a war-like tear economically, taking steps to make their economy the dominant one, with everyone dependent upon them. Realistically, that's coming, particularly with Trump removing America from it's place in the world. Other countries would be well off to look at their agreements with China with more of an eye to their national security, and support America in some ways. But America needs to put someone competent in place to do this on America's part. Trump is just messing it up.

The problem is, he's actually right about China on a lot of things. They've already been on a war-like tear economically, taking steps to make their economy the dominant one, with everyone dependent upon them. Realistically, that's coming, particularly with Trump removing America from it's place in the world. Other countries would be well off to look at their agreements with China with more of an eye to their national security, and support America in some ways. But America needs to put someone competent in place to do this on America's part. Trump is just messing it up.

The content of this statement should be a truism by now.

Trump promptly took to Twitter to denounce the move as "currency manipulation." 

Twitter diplomacy again. Trump’s in so far over his head. But that’s to be expected from a person whose knowledge of business was limited to real estate. He was a serial bankrupter (sic) who failed in other ventures. (Trump U? Vodka? Steaks, etc.) His wealth (has anyone seen his current tax info) was inherited. He’s needed armies of high paid lawyers, accountants and fixers (where’s Michael Cohen now?) to bail him out while he was out playing golf and chasing porn stars. 

He’s been unable to get the best business and economics minds to work for him. Instead he’s only been able to get sycophants from questionable backgrounds who’ll go along with him.

While he’s playing golf on the taxpayer’s dollars. He’s also kept busy looking out for Ivanka, Inc. and his brand name around the globe.

The real question is, how will he react when his so-called booming economy collapses? That's been the only thing he and his Trumpets have been able to rely upon - 'but the economy is booming'. What will they switch to when it isn't?

What will they switch to when it isn't?

"bout time China had some freedom!!" maybe?

I'll quote one of the best economists of our time, Peter Schiff, who tweeted on this news the following:

Trump claims China pays the tariffs by weakening the yuan. Yet the yuan is only down about 2% since he become president, a small fraction of the tariffs. He then complains when the yuan weakens, which is how the burden of paying the tariffs shifts from Americans to the Chinese!

The Chinese yuan is down far more against the euro and the yen today than it is against the dollar. So if anything China would increase exports to those regions rather than the U.S, so no tariff offset. Also why aren't Europe and Japan accusing the U.S. of currency manipulation?

American Farm Bureau Federation president Zippy Duvall

Duvall said the aid would help, but urged the administration to resume talks with Beijing. "We urge negotiators to redouble their efforts to arrive at an agreement, and quickly. Exports ensure farmers will continue to supply safe, healthful and affordable food for families here and around the world.”

Thank god they’re still pushing the President to not give in. With all the socialists that have zero answers or care about the flyover states, now they care, these farmers are not stupid and China hopes that one of these fools will get nominated to fall back into the typical status quo and continue to screw the farmers more and more, slowly, but methodically. If Trump wins (more than likely) re-election then China really has very little choice but to come back and deeply pursue talks to make a deal.

With all the socialists that have zero answers or care about the flyover states

Do you socialist think that Trump socialist was socialist wrong to socialist say that winning a trade war socialist would be socialist easy to win?

@bas4f With all the socialists that have zero answers

What happened to the capitalist's 'let the market determine without government interference.' Is the 'temporary socialism' (alt right term), i.e. taxpayers funding farmers hurt by Trump's measures, OK? Or is it the start of some domino effect; something else feared by the alt right.

the USA will come out ahead in the end. Then all the liberals will claim they never said the USA wouldn’t win, then move on to the next talking point.

China got enough other options than relying on the US.

And they are using those options smartly!

Not in the long run and China knows this un-smartly.

https://youtu.be/-ubtJhhTYyg

https://www.msn.com/ja-jp/news/opinion/cramer-remix-china-needs-us-more-than-we-need-china/vp-AAAZ8Cy

Yup.

i remember when liberals were complaining that Trump didn’t “call out” China for currency manipulation.

You can add that to the “promises kept” list now.

Good luck commies. China’s pig population is dying. Things will change once Xi rolls the tanks into Hong Kong.

What happened to the capitalist's 'let the market determine without government interference.'

What? Are you serious? Lol! I’m not even going give that a dignified response.

Is the 'temporary socialism' (alt right term), i.e. taxpayers funding farmers hurt by Trump's measures, OK?

This is different from “cradle to grave” of government entitlement for millions of people funded by the tax payer

Or is it the start of some domino effect; something else feared by the alt right.

Not at all, but the alt leftists desperate mumblings that temporary subsidizing these farmers until a deal with China can be made. It’s in the word temporary compared to the socialists that want a lifetime commitment from the tax payer. As always, nice try. Lol

Which liberals will also support once Trump is against it.

Things will change once Xi rolls the tanks into Hong Kong.

Well, it's official. China is now a "currency manipulator", according to the US.

Prepare for some tariffs China, you asked for it!

Trump people, the market is falling. Trump is running the USA like his casinos. I understand you don't want a Hillary socialist, but Trump is worse with multiple bankruptcies. If you wanted a real billionaire businessman to run the USA should have elected Bill Gates. Again the market is falling and failing like NO OTHER PRESIDENT. Bill Gates has better experience with MARKET GAINS

@blacklabe Which liberals will also support once Trump is against it.

Someone's 'liberal' obsessed. LOL

How about that? China has trade weapons other than tariffs at its disposal. Who knew?

Someone's 'liberal' obsessed. LOL

Sorry, I find few things to laugh about the near total collapse of the American right into stupidity and madness

Stocks plunge on Wall Street over escalating trade war

(News source)

This would not be happening if a competent billionaire like Bill Gates were president. This is on Trump's watch and a recession is coming with the racist president who can't even profit from a casino that his daddy bought for him (unlike Bill Gates who is self made and many 10s of billions richer)

This is a blow to Trump's reelection hopes. He largely won because of the backing from the rural voters in America. Now, even farmers and their families are losing confidence and are feeling the effect of losing their markets. Trump's so-called assistance package is simply a Band-aid and will not help solve farmers' problems one bit.

We're in an economic war which originally had its base on stolen technology among other factors. If the US & other economies are suffering, it pales to the melt down in China which for reasons of news blackout laws we hear nothing. Hong Kong is Kids game compared to the social unrest in the bamboo curtain. It's a war. We must expect these losses. The implosion under Xi is taking place as we read and write.

An entirely predictable result.

So, the US labelled China a "currency manipulator". And ?

Does anyone know what that does ?

Stock market goes down one day and liberal glee can’t be contained. Just overjoyed at all those “rich people” losing money! Socialism rules!

Trump's so-called assistance package is simply a Band-aid

Sounds like socialism to me.

Like I said, a deal has to be made where both sides save face. It's the only way that a deal can get done. One side dictating terms to the other is not a workable approach.

Trump's only solution is to try to create a grand deal with China that can change the conversation entirely. His approach isn't salvageable at this point anymore.

Thank god they’re still pushing the President to not give in.

Another cite that undermines your position. Hilarious. If the farmers were pushing Donny to hold strong, the farmers wouldn't be urging "negotiators to redouble their efforts to arrive at an agreement, and quickly. Exports ensure farmers will continue to supply safe, healthful and affordable food for families here and around the world.”

Rhen again, it's socialistically probable that this socialist's socialist is interpreting English through s socialist lens. Whatabout the Dems? But, but Obama.

The Democrats would have nothing on China. Can you image the soft, sleepy Biden or Warren trying to negotiate with China's cutthroats? Hilarious!

I have lots invested. Trump economy is making me more money than I ever expected and helping my business grow.

Can you image the soft, sleepy Biden or Warren trying to negotiate with China's cutthroats?

Erm, yes. Warren in particular actually knows things. Trump doesn’t know his arse from his elbow and has turned socialist to bail out those getting screwed by his stupidity.

Black: I'm glad the economy Donny inherited from Obama is helping a business in Japan grow.

I have lots invested

Better read those statements again. You are losing money now. But please don't mistake retirement pensions and social security for the stock market. When you open that envelope with that government check it is not a stock investment.

Also

my business grow.

Just like people who brag about their valor as retired SEAL TEAM SIX members are 99.999% liars, it's the same who brag about wealth.

more money

By the way, I took my billions out and put it in cash to protect myself. I'm a money smart billionaire who knows how to protect my money from the bad Trump economy.

Oh yeah, here come the "thanks Obama" brigade again. Give it a rest by now.

Dem 2020 hopefuls just got done destroying the Obama "legacy* last week on stage.

I won money on Trump election, making money in several countries, even won money on the fight last week when Colby Covington won. Get off the tracks when the train is coming.

Blacklabel: I have lots invested. Trump economy is making me more money than I ever expected and helping my business grow.

No, you don't. And no, it isn't.

yeah cause that wouldnt match your "narrative" of the Trump supporter.

Remember, I voted for Obama, not once, but twice.

ThePBotToday  08:37 am JST

Well, it's official. China is now a "currency manipulator", according to the US.

Prepare for some tariffs China, you asked for it!

Oops, forgot to put "/s"

Article missing important point: China wanted to renegotiate the deal that they already agreed upon.

No, you don't. And no, it isn't.

You don’t know that.

Black: I'm glad the economy Donny inherited from Obama is helping a business in Japan grow

He inherited a sluggish 2% GDP economy, pathetic. Thankfully, the President created a robust strong economy on steroids, if Dems want to make that stupid Obama Pinocchio, they’ll lose on that alone, I hope and dare them to use that in next years election.

Bass:. You don’t know that.

Of course I do. Sure, there's always a chance that a seni-literate Trump fan here is wildly rich.....but two?

 If Trump wins (more than likely) re-election then China really has very little choice but to come back and deeply pursue talks to make a deal.

everybody said that when the trade war started 3yrs later, still nothing. China and its leadership will still be around in 1~5yrs , Trump won't. The longer this trade war goes on the more likely the US will have a recession. Chinese government doesnt lose votes in a recession. Next POTUS whoever it may be won't be able to do any worse than Trump. Make no mistake both the US and China will suffer in a prolonged trade war, politically the US will suffer far more

he President created a robust strong economy on steroids

And imagine if Bill Gates were president. Compared to Bill Gates Trump barely can be compared to a used care salesman and Bill Gates is a self made man while Trump got daddy's money (and still went bankrupt). Also, stock market is down under Trump.

Of course I do.

No, you really don’t, but if you do, prove it.

Sure, there's always a chance that a seni-literate Trump fan here is wildly rich.....but two?

you are right, but with money and lots of it you have achieved something that others have not and you use your knowledge to beat the others. Lol

Make no mistake both the US and China will suffer in a prolonged trade war, politically the US will suffer far more

Not really, given the very large poor population in China. You still have more poor people than rich people, they will greatly suffer more than anyone in the US, just by the sheer numbers of poor people that they have.

Not really, given the very large poor population in China. You still have more poor people than rich people, they will greatly suffer more than anyone in the US, just by the sheer numbers of poor people that they have.

Do you really think the Chinese government cares about their own poor people? In that way, Trump is similar. And in that sense, you seem to care more about Trump winning than for the American poor and farmers. But hey, Trump probably feels the same. As long as he wins and his ego is appeased, nothing else matters.

Trump will have to increase the size and budget of his socialist farming policy if he's to maintain his farming base vote

And to keep his big energy vote, Trump the socialist (national?) will have to keep subsidizing big energy.

United States Spend Ten Times More On Fossil Fuel Subsidies Than Education

https://www.forbes.com/sites/jamesellsmoor/2019/06/15/united-states-spend-ten-times-more-on-fossil-fuel-subsidies-than-education/#538ed71c4473

Then will you add the subsidies for the big war industries to protect global big oil, it looks like the US is a socialist (national?) nation.

Liberals always give up when policy gets tough. Stay the course Pres. Trump

@8T Stay the course Pres. Trump

Do you think Ivanka Inc and others in the Trump syndicate doing business in China are at risk of getting financially hurt if Trump 'stays the course'?

I have lots invested. Trump economy is making me more money than I ever expected and helping my business grow.

Good for you. But millions are suffering from the trade war. I don't think the "I'm alright, Jack" attitude is much of a comfort.

Incidentally, why do Americans boast about how much money they have? It's a rather vulgar and curious affectation. Money can't buy one class, you know.

China halts U.S. farm purchases

All the more for other countries. China's loss. A lot of Chinese people want U.S. farm products. Maybe we'll see some protests. Probably not though.

Quite frankly, Trump's in over his head.

Quite frankly, that's not true.

Trade wars are easy to win. 

Health care is easy to fix. 

Mexico will pay for the wall. 

I'm the only one who can fix it. 

Had enough yet, America?

No new wars

U.S. troops leaving Afghanistan

Trump makes history by becoming the first U.S. president to walk into North Korea in the interest of peace, God forbid

Mexico doing more to help secure the U.S. southern border than the Democrats

Booming economy, record low unemployment

We the People: Please stop, Mr. President, we can't take all this winning!

Trump: "No, no, we have to keep WINNING!"

A lot of Chinese people want U.S. farm products. Maybe we'll see some protests. Probably not though.

Two logical fallacies here:

Chinese people are brainwashed as much as Americans. They support their government even more than you support Trump. It's doubtful many want American stuff. We wouldn't see protests in China either way - it's China. They aren't allowed to protest unless the government organizes it.

And #2 is the reason why Trump can't win the trade war, because as much as he wishes he was, he's not running a dictatorship.

Incidentally, why do Americans boast about how much money they have? It's a rather vulgar and curious affectation. Money can't buy one class, you know.

Not only Americans, I hear people from all over the world that have money boast, especially in my business, I don’t have a problem with that, you work hard you have the right to brag if you want, nothing wrong with it.

Quoting from Economics Nobel Laureate Paul Krugman, in the May 7, 2019 New York Times:

"So if you're trying to make sense of what's happening on trade, you should start with the basic point that Trump has no idea what he's doing, that there isn't any coherent U.S. policy goal.

......One thing is certain, however: If we do get into a full-scale trade war, for whatever reason, it will be very hard to end it, and the world economy will never be the same."

And what business are you in today, eh? Rhetorical question, I'm not actually interested.

Whichever business being in will support his position.

@serranoBooming economy, record low unemployment

Trump inherited a solid economy built on reasonable economic measures and then boosted it using voodoo measures. History has shown economic growth fluctuates.

It's vulgar and boorish. People who do so have no class.

Posters who pride themselves on being disrupters frequently resort to fabrications to attract attention to their avatars. Some have admitted to being OCD.

Chinese people are brainwashed as much as Americans. They support their government even more than you support Trump.

In my experience in China and working with Chinese people, many Chinese people will support the CCP as long as they keep delivering what is most important - economic growth and unity. There is of course brainwashing at work but no worse than the ‘send them back’ whooping boneheads at a Trump rally.

I get the sense that the Fox News brainwashed types who repeat the word ‘socialist’ like Sean Hannity pull-toys are actually tougher nuts to crack when it comes to looking at objective truth.

It's not Trump F'''ing up, it's your poor judgment in gambling on the stock market.

Pretty much every rich person out there plays the stock market. Please tell us Serrano, why should I take your opinion that playing the stock market is poor judgement, over that of successful people?

Trump makes history by becoming the first U.S. president to walk into North Korea in the interest of peace, God forbid

Yeah, right. PR stunt. NK is sending missiles out and Trump calls them beautiful. Nothing to worry about. NK probably working on their nukes too. Meanwhile under Trump SK and Japan are in full on trade war. He has done nothing to stop that.

Clearly, as with most deluded republicans, you cannot tell the difference between a PR stunt and a massive failure. Trump, just like with Russia, is aiding and abetting our enemy NK via his PR stunts.

http://www.koreaherald.com/view.php?ud=20190802000103

This is a case of the pot calling, the kettle black. Mind yr own business trump. middle class americans are in proverty and u are wasting tax payers money and precious time. Pls stop blaming China, blame yr own incompetence. U want to take Chinese money when U have nothing to give except nonsense ???.

Beijing needs to buy USDs to hedge their Yuan/Renminbi. When the Chinese trades with Merica, they carry the return USDs as a peg against their weak Renminbi/Yuan. Get rid of the USDs flow (in order to lessen exports) and China will begin to exhaust out of strong fixed currency.

What's going on currently isn't much different from explicit devaluation by Beijing; relatively, the Chinese central bank is purposely authorizing the Yuan/Renminbi to decrease in value, in order to deliberately neutralize the imposed tariffs as well as more significantly reduce export prices.

At the same time, China is internally allocating by burning massive of cash, to maintain their from already fragile diminishing economy as evident on the recent macro data side of perspective. China's Renminbi/Yuan cash-burning rate is extently higher than the inflow of greater valued USDs needed to retain their position.

Red Dragon cannot and will not continue this stance continually.

Here's a solid perspective from Gerald Storch on how the currency manipulation by China to devalue their currency actually points to having much reduce prices for American consumers. This video interview emphasizes the point of American consumers are not paying for the tariffs against Beijing which is melodramatically embellished.

https://www.youtube.com/watch?v=J75N65fT1Hc

Regardless of Trump's tariffs, China distinctly states that they'll keep decreasing the Yuan/Renminbi's value to retain the flow of cut-rate, marked down manufactured goods made in China flowing back to America. Concurrently, China need the higher yielding valued USDs to supplement and reinforce their own dwindling Yuan/Renminbi.

https://www.youtube.com/watch?v=SnmTnpDuVoc

Dow futures up today. There goes liberal recession hopes. Probably just up because Obama put out an anti Trump statement. Thanks Obama.

Hey how do you feel about business opportunities in the Trump economy? How do you feel about what China is doing with their own economy and currency?

are there any indications that the recession you are begging for is coming? Does Trump finally take over the “Obama economy” on the exact day that starts?

nothing. Just insults and dumb catchphrases.

Also Monday, China's official Xinhua news agency reported that Chinese companies have stopped buying U.S. farm products - a direct shot at Trump supporters in rural America.

It is not the China government fault if companies do not want to buy import stuff.

For better or for worse China is the number one economy in the world right now and they have all the right to ask that the Renmibi will become the IMF's back-up currency replacing the Dollar.

It is not the China government fault if companies do not want to buy import stuff.

Surely you jest. Important business decisions in China require government input and direction.

Prepare for some tariffs China, you asked for it!

this what people fail to understand, Chinese exports to the US account for only about 4% of its economy. so while it may hurt economic growth it certainly not the end all for China as Trump and his minions seem to think, far from it. Chinas playing the long game and economic downturns dont equal lost votes unlike the US

For decades Americans were told by their politicians something along the lines of that if America helps China become more prosperous they would become "more like us." That was a lie. While I am not a Trump supporter, Donald could be the first POTUS not to tell Americans that, and the reckoning must come in some form. China is an enemy of freedom and a growing threat, yet they are fragile because they are a rigid, top-down society.

yet they are fragile because they are a rigid, top-down society.

and American politics isnt rigid!? Doesn't matter if you like or loath the Chinese political system, fact remains their system of government isnt as susceptible to change as economic downturns or political climates, trade wars etc. They know their power will be unchallenged and unchanged compared to the American political climate, so when you look at both systems its easy to see which one is more stable. Freedom well thats debatable since 1% of American population has or is incarcerated and that being the highest of any 1st 2nd world country in the world, including China, then you have violence in society Id warrent a guess it more dangerous for your health living in the US than in China regardless of politics and weath classes. Yes there are over 100 democratically elected free countries in this world we live, freedom certainly isnt a trait America are best at far from it.

"Until now, economists had expected the People's Bank of China, the Chinese central bank, to intervene and put a floor under the currency if it threatened to breach the seven-to-the-dollar level."

So far from "manipulating" the currency, China chose to let market forces work.

That's about the opposite of being a currency manipulator. You got it wrong, U.S. Treasury Department!

Dirk T is spot on.

I also dont agree with all of Trumps doings, but he is the man to set America straight. There is going to be allot of pain, but thats the consequence of previous buffoons in charge who had no idea or could care less about the policies they made.

@wtfjapan

No, the USA is not a rigid, top-down society like China. If you think it is, then your understanding of China and America is sorely lacking. China is fragile, according to Nassim Nicholas Taleb, because of its "continuity, concentration and monolithism" as is Saudi Arabia.

@TheLongTermer

I am not as positive about Trump as you, not at all. But Americans were lied to about China by POTUS after POTUS.

On another note, it is said that the Uyghur Muslim sources journalist have relied on have vanished. Not only that, China is arresting Han Chinese who speak to Western journalists about China's repression of Uyghur Muslims. How is that for a rigid, top-down society?