"The Currency of the Elite is Gold & Silver Don't sell your Gold don't sell Your Silver " Pastor Lindsey Williams

Tuesday, September 3, 2019

Can Trump survive the Trade war with China !?







What I think is dearly underestimated in the U.S. press is the severity of the punch China had to receive with the whole prompted up Huawei affair. If Trump’s goal is to eliminate all U.S. businesses contacts with China this surely has sent the message loud and clear. If the ultimate scenario off the U.S. Indeed is cutting all business ties with China how will China react to all this? China decided to halt further tariffs of their own making which seems like a very wise decision because tariffs are stupid anyways since they take away purchasing power from your own civilians. And with a lower Yuan already that doesn’t do any good. If China is denied a big of the piece of the global market pie China could decide to do the same thing with the U.S. That is China’s biggest trump card, it’s massive consumer potential. An eye for an eye could mean denying Apple access to the Chinese consumer market. That’s more nuclear than China has done so far. But China plays with their best cards close to the chest and very wisely so. An other trump card could be rare earth metals . China denying the U.S. industry it’s precious rare earths would be a big blow to them. The often point missed is that America is already so much entangled in global trade, also with China, that untangling that is a logistical nightmare nobody would seriously consider before but now they somehow do? As I’ve said many times before, the Chinese will wait out the elections first without acting over dramatic, they leave that part for Trump while considering their further options. Trump as to have a trade deal before the elections, the Chinese however do not! That’s maybe why we see Trump in full ADHD mode, very restless and impulsive. And now the Chinese are playing Trump like a Piano throwing him a bone by halting their own tariffs on U.S. products while Trump’s tariffs on Chinese goods together with a strong dollar are hurting U.S. companies and consumers. So the pressure is building up on Trump not only from farmer’s side but also from a lot of U.S. biggest, bigger and smaller companies because they are about to loose their biggest customer or supplier. And I think it’s there where the rubber hits the road. I think that Trump has hung himself with this trade war because in the end if U.S. companies are not happy, wall street won’t be happy even if the Pentagon thinks it’s a good idea like all wars, with their professional deformated military view on the world. And so Trump has put the pressure on himself by thinking he could walk this tight time frame with the Chinese which is of course a big mistake knowing the Chinese a little. The economy is tanking faster and faster and Trump will be faced with a big market crash at the end or beginning next year. That will cost much of Trump’s credibility. If Trump’s survival hangs on a a trade deal he has to come with something really significant on the table or the Chinese will turn their backs. But the changes on that happening are slim. In addition even with the FED backing Trump the real economy is going down with or without a trade deal but it can’t be denied that without the trade deal that process is hastening it’s pace as we speak with the pressure of corporate America and Wall Street building. So what could this all mean for Trump’s re-election changes? A lot I would say ! .


LINDSEY WILLIAMS BLOG
LINDSEY WILLIAMS BLOG