Iguana posted:FC posted:The fact is the gains was not due to Trump as he inherited a very good hand from the Obama administration. True the markets have been up and markets do go up and down. That is nor a revelation to me. My point is this sell off is directly related to Trump’s idiocy in wanting to start a trade war which not only will adversely impact markets but the economy and consumers negatively.
Statments like this "The fact is the gains was not due to Trump as he inherited a very good hand from the Obama administration" diminish you. Certainly administrations build on one another but look at the boom in the market after January 2017 when Trump was sworn in and after the tax cuts. This sort of political pandering is counter productive to any discussion.
You then go on to say "My point is this sell off is directly related to Trump’s idiocy in wanting to start a trade war which not only will adversely impact markets". Idiocy???????? Nothing wrong with America importing close to $500 billion from them while exporting a mere $150 billion to them????????
If you're really worried about impacts on consumers and economy you would be concerned about such a large trade deficit and it's impact on the working people of America, especially Guyanese living in the US who could use the blue collar jobs that are lost.
The Chinese don't consider Trump's position idiocy. They signed an agreement in May 2018 to renegotiate fairer trade deals, details pending. Trump is tightening the screws now to speed up negotiations during the details.
The Chinese markets have LOST value in light of the possibility of losing much of $500 billion in exports. Their markets are at all time lows for the year. They know they have reason to worry and who holds the upper hand while you agitate about a1.5% drop in the Dow after a 30% run up.
Sir, I do not agitate about the 1.5 % drop in the Dow, I do know how to deal with this phenomenon, but rather with the adoption of protectionist strategy by the Trump administration. America is one of the most protectionist country in the world yet they have a trade deficit with China. How come? Because protectionist strategy does not work to reduce deficits. Tariffs have an insignificant impact on exports and trade deficits. The size of trade deficits are determined by macroeconomic forces including savings, investments, government deficits and exchange rates rather than trade conditions with individual countries.
Look, I agree that the trade deficit is a concern but starting a trade war is not going to reduce the deficit.