Remember when Theresa May told that nurse there was no magic money tree? It's amazing how much money has been found by the Conservative government lately and even more amazing how much has been wasted.
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Remember when Theresa May told that nurse there was no magic money tree? It's amazing how much money has been found by the Conservative government lately and even more amazing how much has been wasted.
Traders Brace for Full-Blown Currency War as China's Yuan Sinks: https://www.bloomberg.com/news/artic...sinks-jyxvuznc
China joined in the "let's devalue our currency" fun and games overnight after Britain and the Yanks beat them to it last week. World trade is sinking fast as the big economies try to maintain their piece of an ever shrinking pie.
The Donald predictably hasn't taken kindly to China manipulating its currency in response to his country doing the same.
Donald J. Trump
✔
@realDonaldTrump
China dropped the price of their currency to an almost a historic low. It’s called “currency manipulation.” Are you listening Federal Reserve? This is a major violation which will greatly weaken China over time!
29.1K
1:12 PM - Aug 5, 2019
Yeah, he's crackers, AKA cognitive dissonance in more polite circles. Tell me, Cyril, serious question - do you suspect, as I do, this spat is all scripted?
I would not be surprised if there was a little choreography in the background in that the bigger the crisis looks the shinier the knight's armour when he rides in on his white charger. It might suit China to make whatever relatively meaningless victory Trump claims at the end look like that if they think it's in their interests for him to serve a second term.
That said I don't see the win-win here. Trump has singled out China, (Pompeo is circling the globe threatening "allies" over trade and Huawei) to make his America First Stand. I get the sense that Xi, who has no fear of the fragility of democracy, is in a far stronger position in the next couple of years as Trump needs good economic metrics to have any chance of reelection. It makes me laugh when you see headlines of Chinese growth suffering because of a trade war when their burst bubble is still three times greater than the US currently and over four times the UK.
Ta for that. :thumbup:
I had to take to the settee to lie down with a wet flannel resting on my forehead at 6pm yesterday as so much was going down it was a case of information overload. Then when I recuperated the Yanks announced officially that the Chinese had become a currency manipulator, and I had to immediately resume my position on the settee as it one again proved too much for me to process.
This morning it's reported North Korea has lobbed two 'unidentified projectiles' into a nearby sea and China might be poised to send its army into Hong Kong to ensure the ructions on the streets that took place there yesterday aren't repeated.
New Zealand, Thailand and India cut their interest rate today as the global economic shite storm gathered speed, and the ragged pound is down to 1.08 versus the euro.
The Yanks declaring China a currency manipulator two days back, which was the first time in 25 years they'd accused any competitor of such skulduggery, alerted the world that no end is in sight to their trade war and when the world's two biggest economies go toe-to-toe then everyone else feels the slowdown.