During the last few days, the Donald has gone stark raving mad on the trade front. Yet the bozos on Wall Street are already sounding the “all clear”, claiming this is some kind of brilliant Trumpian 3D chess maneuver or that it’s just a skirmish and it will all soon blow over.
Indeed, the over night rally in equity futures was pegged on a reed so thin as to be truly pathetic. According to one Irene Cheung, a purported “FX strategist” at ANZ bank, there’s nothing to sweat:
“China’s stronger-than-expected yuan fixing should help to calm the market and the visit of the North Korean leader to China suggests that perhaps there is room for trade negotiations” she added.
Really?
The Donald has declared a tariff war on 91% of China’s exports to the US ($450 billion out of $505 billion). Yet without its massive export earnings the Red Ponzi would collapse under its $40 trillion of unpayable and unsupportable debt, and its communist ruling party would find itself high and dry.
So one night’s FX fixing is supposed to prove that Beijing’s rulers are going to come trundling to Washington tin cup in hand?
More importantly, this morning Trump’s dangerously foolish trade advisor, Peter Navarro, published a 35-page screed that is an unhinged outburst of anti-Chinese bellicosity.
Entitled “How China’s Economic Aggression Threatens the Technologies and Intellectual Property of the United States and the World”, it is a testimony to sheer economic ignorance and a nasty form of Big Government nationalism.
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