US v China Trade War Begins
Human beings huh. We just don't learn from the past.
Imposing tariffs on trade, while it may seem like helping local business on the surface, does more harm than good when you lose the ability to specialise.
Donald Trump restricting trade via the imposition of tariffs will do nothing for the people that he is claiming to protect from the big bad Chinamen and will instead bend them over and fuck them in their own arse.
Now it's not even like we're talking about forgetting things that didn't work for society thousands of years ago or anything, we're talking about just a few decades.
People that lived through this stuff the first time, are actually the ones making the same mistakes in positions of power right now.
It's absolutely mind blowing to me how ridiculously stupid human beings are. It is just that fucking ridiculous to me that I just... can't.
What is Happening to Markets?
Well open up the stock charts app on your phone and have a look.
Red. Down. Burn.
US stocks got pumped as Trump followed up a Fed rate hike by stoking the coals of a trade war fire. I remember being taught in high school economics that monetary policy needed the support of fiscal policy to be an effective tool and hilariously after how bullish on the state of the economy the Fed was just yesterday, the president goes and creates this mess to appease voters in the Midwest of the country who of course don't know shit about economics themselves.
They don't have to though. It's not their fucking job. It is the president and his adviser's job though.
You can forgive voters for being ignorant, but you can't forgive the ones that are in charge.
Well after the US session was a tankfest, Asia followed suit as the Chinese timed in with their own retaliatory restrictions back at the US and just like petty fucking children, adult human being who know they need a globally connected economy for everyone to prosper, were at war with each other.
Have I made it clear how ridiculous I think this entire situation is yet? Because it's fucking ridiculous that we are doing this!
Now I get that the Federal Reserve is independent blah blah blah, but the way that they recklessly, and that's what it was, hiked rates yesterday with this Donald Trump trade war rubbish hanging over the head of the entire economy, was reckless.
There's no other word to use. That's the word.
My opinion is that shit is going to properly, globally hit the fan in the coming months and I'm happy that I'm a short term trader who's invested deeper in crypto than I am in equities.
Human beings within the modern day society that we've created for ourselves are fucking muppets. That's all there is to it.
Peace ✌🏻.
Instagram: @forexbrokr
Website: www.forexbrokr.com
Ugh, this madness drives me bananas. I figured even Trump would be able to see the correlation between talks of tariffs and market downturns, but it appears not...Whether this is a political move to try to shore up support amongst his "disenfranchised" base or not, it's all around unideal for equity markets. FUD, welcome to the U.S. equities markets..
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Exactly man, even if he pleases his so called political base right now, they’re going to get pissed off in the end when everyone is worse off from the ridiculously unnecessary trade war that will ensue. Sigh.
I’ve given you a follow man. Your content is good. Just gotta write more often!
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Much appreciated dude - gave you a follow as well! Hoping to carve out some more time to blog more going forward.
I also honestly am having trouble figuring out what's happening to the markets/certain sectors. I'm not sure I fully understand the beating that Tech has taken over the past few days. Feels like an overreaction given the fundamentals haven't changed that dramatically...
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
As far as i remember it is not just between UAS and China, but more like USA vs World. Steal act hyrs China and Russia now, but from May,1 it will include EU and Canada as well (if Trump will not change it in April). US and Chian are 1st and 2nd place in economics. The trade wars will drug all other countries as well. Is this a way to a new global economic crisis?
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Yep, the risks globally are huge. Just China and the US are the headline acts for now.
We’ll have to see how the story develops...
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
i see it as just a distraction from the fact that interest rates are under pressure to increase while there has not been a huge economic recovery after all of the monetary easing & borrowings.
The interest repayments alone will hurt countries.
If the distraction is going to be trade and tariffs then that is way better than the other normal solution - War.
Although, on trade, I have seen first hand Chinese business "steal", I would say "naively given" Intellectual Property, and then lost the whole market to Chinese business people who had a lower cost of production in combination with tight profit margins.
There also needs to be discussion about fair tariff rates. If some countries are going to impose hefty tariffs to protect their market while other countries are expected to have open doors, it destroys local businesses.
I cannot compete against a multi national who shifts profits overseas through "highly unethical" transfer price arrangements that border on illegal, I say border on, as the Corporations Law in Australia contradicts itself vs its Related Party Section and the Tax Method of calculating margins.
The issue in the media is not addressing the deeper issues.
Trump brings up some good points, but does them in a typical, over the top way. Global trade, taxation, transfer pricing, multinationals, local taxation etc needs to be discussed and addressed.
Grand standing is just the distraction from the Obama fed debt (from 9 trillion to 19 trillion), Trumps blustering, while spending, & the increase in the 10 year bonds (@2.88%) - remember that the 2008 GFC got loans at 0% on alot of money - alot of that is maturing now and needs to be refinanced - that's alot of interest!
Just saying, it is complicated.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
It’s complicated of course. I agree he had to do something to shake up a domestic and global economy that was leaning far too politically left. But... imposing tariffs like this and stoking a trade war with China is just downright stupid.
Thanks for taking the time to comment like that man. Appreciated.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Yes, happy to contribute. Listening to the radio news and how they assess it, is just so frustrating.
They refuse to look at how we got to this point.
If they love Trump, or they hate Trump - they just tie together a narrative that "seems" to make sense, if you only look at a select group of recent facts.
Thanks for posting and let's keep the ideas turning.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
These two giant economies need to clean up their act for a more prosperous world... or by preserving just their own countries interests would really mess up all the other economies.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
But we’ve learned that tariffs don’t even preserve your own country. They make everyone worse off in the end.
So frustrating to watch!
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
greetings to all...¡¡ I agree with you but I think we can take a little advantage this week selling eur/usd.. my friends, you can check and comment my signals and forecast for eur/usd this week here: https://steemit.com/forex/@t0rn4d0/forex-forecast-for-the-eur-usd-week-from-03-26-to-03-30
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
well the price volatility is an opportunity for us to grab quick profits and big pips! i love it when that happens.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit