“CHINA HAS NO RESPECT FOR OBAMA”
|| By FITSNEWS || GOP presidential frontrunner Donald Trump – who has mercilessly ripped U.S. president Barack Obama‘s crony capitalist Asian trade deal – is now slamming the vacationing chief executive in the aftermath of China’s latest currency devaluation.
“(China) continuously cuts their currency, they devalue their currency,” Trump said during a campaign speech in Michigan. “They’ve been doing this for years – this isn’t just starting.”
According to Trump, China’s monetary manipulation – which artificially lowers prices on its exports (and reduces profits for companies selling within its borders) – makes it “absolutely impossible for the United States to compete.”
“China has no respect for President Obama whatsoever – whatsoever,” Trump said. “They think we’re run by a bunch of idiots, and what’s going on with China, it’s unbelievable.”
The People’s Bank of China (PBOC) set its official guidance rate for the yuan – its official currency – at 6.2298 per U.S. dollar this week, the lowest level it’s been in three years. The two percent devaluation was also the largest single depreciation since 1994 – when China ostensibly pegged its currency to the market.
Its goal? To kickstart a sluggish economy by making its exports less expensive for foreign buyers. Oh, and if you believe the Chinese spin, to introduce a new system of exchange rate management which will allow the yuan to trade more freely in the global currency marketplace.
The problem? China’s move could kickstart a global “race to the bottom,” with countries like India and Russia devaluing their currencies in response.
“This is the start of something big, something ugly,” economist Albert Edwards told The (U.K.) Guardian, saying the Chinese devaluation would send “a tidal wave of deflation” breaking over the global economy.
The move also complicates the secretive U.S. central bank’s desire to raise interest rates – which have been set at zero since December 2008.
The Federal Reserve had hoped to raise interest rates in September – even though job and wage growth have fallen well short of their expectations. But China’s move makes it less likely this rate hike will happen. And if it does, it would only strengthen the existing headwinds against American manufacturers.
Who cares, there are consequences to what China is doing. You reap what you sow.
True. They also, in affect, just made capital investment for their economy more expensive since capital equipment is primarily made in Europe and the US. It will give them an edge in selling more plastic crap in the Third World, but it will negatively impact their economy over the long haul. By restricting purchasing power of a hungry middle class, they’ll dampen domestic growth. Not to mention it will increase the cost of fuel and hurt car sales – an emerging market’s greatest friend.
“Not to mention it will increase the cost of fuel and hurt car sales”
Deciding it was time for a history review, the teacher asked the class, “Who can tell me what historical figure said, ‘I have not yet begun to fight’?”
The little Japanese girl in the front row raised her hand and answered, “John Paul Jones.”
“Very good, Miako. Now, who can tell me who said, ‘I regret that I have but one life to
give for my country”?”
Again the little Japanese girl was the only one to raise her hand, and piped up, “That was Nathan Hale.”
The teacher said to the class, “What’s going on? So far, Miako is the only one to answer any of my questions.”
Suddenly a voice was heard from the back of the room. “Aw, fuck the Japanese!”
“Who said that?” asked the teacher sharply.
Miako’s hand shot up. “Lee Iacocca!” she said brightly.
Well ‘ol Lee did get the Ford Mustang in showrooms
And the rest they say is history.
We’ve had a ’67 ‘Stang “fastback” in the family since my parents bought it back in 1969……………
“I think I’m gonna puke”, said a boy’s voice in the back of the classroom.
“Who said that”, asked the teacher.
“George Herbert Walker Bush”, said the little Japanese girl.
Who’s listening to Trump? Oh yeah, total wing nuts.
Let’s see…Trump’s lost the Hispanic vote, female vote, African American vote, the sensible person’s vote. All that’s left are old white racists. So he should do well in SC.
All he needs is a burning cross and he’ll win the south.
When is he gonna start the UNION bashing? Every real Republican MUST do it!
I can see Due West from my house!
your tears are delicious
Even Trump knows SC isn’t that important. Skipping a SC town hall event. Your tears are delicious.
President Gingrich credited his landslide victory to winning South Carolina, don’t you remember?
VERY GOOD ONE!!!!!!!!!!!!!!!!!!
Once again, the Great State of South Carolina led the nation in picking the president in 2012!!!!!!!
Tomorrow’s headline: “Trump Farts and Sneezes at Same Time” . . . . .
China lowered the Yuan again today after saying it was a one-off event. They said they were going to let market forces decide, but no the Chinese are buying Yuan with dollars to prop the Yuan up. Won’t work. I believe they had to lower the Yuan, but the Chinese are unable to be honest about it.
I thought the the dollar was losing its reserve currency status, yet I the dollar is stronger than ever. China doesn’t peg their currency to the Euro, Pound or Yen. No they choose the Dollar.
“[T]he dollar is stronger than ever.”
Really? I’d like to have some of what you’re taking. You must feel nice.
All currencies have some inflation. When I said stronger than ever, I meant as a reserve currency. Read the paragraph again.
Will recently did a story on inflation, showing the last 15 years CPI. But he falled to compare it to previous 15 year periods. Inflation is usually present but it is lower than historical trends.
If Inflation was constant or increasing, then his chart should have an exponential shape, but his wasn’t. It had a constant slope indicating declining inflation rate.
Looks like that loudmouth coward only hires Caucasian male bodyguards…………
And I’ll bet that cap that dick wears AIN’t American made either
Why am I not surprised…………..
Those bodyguards are the nucleus of Trump’s version of the Waffen SS
You are very very classy. Your mother must be proud.
All comments on FitsNews are “classy” – what kind of site do you think this is anyway?!?!?
Looks like Aunt Flo is here for a visit.