Market reaction to Trump's China tariffs? DOW crashes over 700 points!!!

As you wrote, market moves are often irrational. Yet you then go on by working quite hard to rationalize them, and point a likely biased finger. That's a bit irrational.

The only way to get "trade partners" back to the bargaining table in order to renegotiate the pathetic deals our neophyte trade representatives worked out over the years is to rattle the cage.

The US is the most dynamic economy in the world. No trade partner is going to walk away from it. When other countries have been ripping us off, there comes a time to hammer the table, and start the process on a different tack.

 

But we gonna have 5% GDP!!!

 

http://abcnews.go.com/Business/wireStory/stocks-sink-investors-fear-us-china-trade-tensions-53932709

Asian shares slump on fears of trade war between US, China

Clueless trump haters assume that a trade war will only hurt the US

But china stands to lose also

 

I'd post the Chinese market / currency reaction, but why bother? Xi Ping will request a meeting to negotiate a solution within days. It's jittery liberal day traders who's "feelings" trigger these sell offs and cause the volatility. Funds seem to panic everytime the Fed looks poised to raise rates. Took less than a week, less than a month ago, for the market to recover from -700 pts.

 

In what way is that good!

 

Its good in the sense that for all its tough talk china may with to reach a compromise instead of a trade war that hurts them more than us

 

What compromise can be reached? China are not going to buy your exports which can be bought cheaper from other countries. You will continue buying Chinese goods as long as they are cheaper than you can buy from other countries. You need to face the facts that your exports are too expensive. Your manufacturing base is producing goods that can be produced cheaper elsewhere. Your current government has gone backwards towards promoting high tech goods that could have captured the market.

 

“My exports?”

Are you another foreigner butting into American topics that are none of your business?

Assuming for the moment you are legit my reply is that China does not have to buy our stufff

Its their choice

And we do not have to continue the $350 bil annual trade deficit with them either

We can stop funding the chinese military buildup by keeping that money in America where it belongs

 

Nobody wins a trade war.

 

Then lets not have one

Trump will put tariffs in place that reduce the trade deficit with china

but will not kill trade entirely unless china chooses to go for broke

 

Trump is the one creating the trade war. Like I said, he is the villain here.

 

Yes my friend, it's high time for some countries other than USA to bend over and grab the ankles. A little trade war may be a good thing now and then.

 

First off, Trade Wars hurt both sides. That's irrefutable.

That said, China has needed some push back for a long time. Maybe this will be the short term pain for the long term gain? I dunno, but (and as it pains me to say this) I think that this might be what is necessary to make the Chinese pause.
Then again, if you are going to war on trade with an economy like China's, you'd need the subsequent diplomatic arm of things going on the offensive as well. Stick and Carrot. Unfortunately the US's carrot team has been decimated.

 

It depends who's playing, and what are the stakes.

 

Occupy Wall Street is finally having some effect -- redistribution of wealth to Main Street and Manufacturing Meadows.

 

You overlook the $350 billion trade deficit

 

No, I just realized that a trade deficit is not the signs of a trade war. Nor is it a bad thing like that simplistic moron Trump seems to believe.

 

Not until 2015 did they exceed what they were in 2007.

 

Oh we're not? What was the largest non-communist country in land mass and population?

 

India, at least in terms of population.

Canada in terms of land mass.

 

Simple explanation...

Putin wants to knock the US out of the position as the world economic power. Trump is doing his bidding....

-start trade war with China
-balloon the deficit to pay a trillion dollars a year in interest
-add to the separation between economic classes
-drop NAFTA and get out of world trade agreements
-allow the Chinese to take over alternative energy...solar...wind....we are returning to the 1930s with dependence on fossil fuel.

trump is pushing the US out as world leader. That is his order from Putin.

 

The US had already knocked itself far down the world economic ladder before Trump declared his candidacy -- which is a major contributing factor to Trump's victory.

 

Its not a good thing when we fund the chinese military buildup via the trade deficit

And losing our manufacturing base to china has cost millions of American jobs

 

Please provide EXACTLY how - using unbiased links to facts/data - did China start the trade war. Not generalities or opinions - actual facts and dates as to what EXACTLY China has done to start this trade war.

Not saying you are wrong - but I am asking for proof...to show that you are not just blindly taking Trump's (and other minions of his) word for it.

 

None of thst is true

The rise of china at the expense of the US is bad for for economy and long term national security