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Isn't Chinese Yuan depreciation caused by Trump's relentless tariff, just like Mexican Peso's depreciation when Trump threatened tariff early this year? I'm co

by datumy 7y ago

Isn't Chinese Yuan depreciation caused by Trump's relentless tariff, just like Mexican Peso's depreciation when Trump threatened tariff early this year? I'm confused who is manipulating the market & currency.

internet_user 7y ago
No. It's caused by China's central bank printing currency in response to tariffs, essentially using currency as a weapon.
- seanmcdirmid 7y ago
  It’s caused by the Chinese not having enough dollars to prop up the yuan. There is no evidence that they are running the printing presses.
- datumy 7y ago
  OK. tariffs => printing money, so tariff is the root cause, no?
  - aianus 7y ago
    There are plenty of good reasons why China deserves tariffs, why not start there as the root cause? Protectionism, IP theft, banning or heavily restricting US tech firms from operating in (aka exporting to) China, the list goes on.
    - simonh 7y ago
      And if that was the real reason, you’d expect the US to be coordinating with other countries that have the same beef with China. Instead, the US is antagonising them as well. Trump has been very clear the tariffs are mainly about boosting US manufacturing. It’s not going to work, but that’s what he keeps saying. If it really was about the issues you list, there are plenty of ways to address them in a much more coordinated and effective manner with like minded allies. Instead the US keeps their demands very vague and keeps changing the criteria, to avoid the chance of an actual agreement. Contrast with the renegotiation of NAFTA. Clear, specific demands in areas they knew would be open to negotiation. In the end, fairly minor updates and a workable deal.
      - busymom0 7y ago
        > It’s not going to work, but that’s what he keeps saying. So far it has worked very well for the US and China has been suffering. US has been able to create 6 million jobs with 2 million manufacturing jobs alone created since his election. China has lost a lot of manufacturing jobs and a lot of manufacturers are moving away from China and either coming back to US or moving to places like India where IP theft isn't a huge problem. US economy is also doing very well, GDP growth has beaten all expectations and what not.
        astronautjones 7y ago
        > So far it has worked very well for the US and China has been suffering. US has been able to create 6 million jobs with 2 million manufacturing jobs alone created since his election. this is nonsense. in what sectors?
        busymom0 7y ago
        Why would you call a stat nonsense? Here's sources. Note that they are from few months ago and the number has been growing since then: > The Trump Scoreboard shows that 5.4 million new jobs have been created under the 45th president. https://www.marketwatch.com/story/trump-scoreboard-shows-acceleration-in-jobs-growth-even-with-unemployment-rate-at-new-lows-2019-05-03 https://www.marketwatch.com/story/trump-scoreboard-shows-acc... https://www.forbes.com/sites/chuckdevore/2019/02/01/manufacturers-added-6-times-more-jobs-under-trump-than-under-obamas-last-2-years/#adb26485635a https://www.forbes.com/sites/chuckdevore/2019/02/01/manufact... https://www.forbes.com/sites/chuckdevore/2019/03/11/trumps-policy-magic-wand-boosts-manufacturing-jobs-399-in-first-26-months-over-obamas-last-26/#317ba99520a6 https://www.forbes.com/sites/chuckdevore/2019/03/11/trumps-p... https://www.wsj.com/articles/u-s-december-nonfarm-payrolls-grew-by-312-000-jobless-rate-rose-to-3-9-11546609016 https://www.wsj.com/articles/u-s-december-nonfarm-payrolls-g... https://www.wsj.com/articles/u-s-july-nonfarm-payrolls-grew-by-164-000-11564749103 https://www.wsj.com/articles/u-s-july-nonfarm-payrolls-grew-... https://www.cnsnews.com/news/article/terence-p-jeffrey/479000-under-trump-manufacturing-jobs-hit-highest-level-obama https://www.cnsnews.com/news/article/terence-p-jeffrey/47900... https://www.investors.com/politics/commentary/trumps-economy-creating-manufacturing-jobs/ https://www.investors.com/politics/commentary/trumps-economy...
Synaesthesia 7y ago
It should not be forgotten who initiated the tariff wars! It was Trump’s administration.

by datumy 7y ago

internet_user 7y ago

No. It's caused by China's central bank printing currency in response to tariffs, essentially using currency as a weapon.

seanmcdirmid 7y ago
It’s caused by the Chinese not having enough dollars to prop up the yuan. There is no evidence that they are running the printing presses.
datumy 7y ago
OK. tariffs => printing money, so tariff is the root cause, no?
- aianus 7y ago
  There are plenty of good reasons why China deserves tariffs, why not start there as the root cause? Protectionism, IP theft, banning or heavily restricting US tech firms from operating in (aka exporting to) China, the list goes on.
  - simonh 7y ago
    And if that was the real reason, you’d expect the US to be coordinating with other countries that have the same beef with China. Instead, the US is antagonising them as well. Trump has been very clear the tariffs are mainly about boosting US manufacturing. It’s not going to work, but that’s what he keeps saying. If it really was about the issues you list, there are plenty of ways to address them in a much more coordinated and effective manner with like minded allies. Instead the US keeps their demands very vague and keeps changing the criteria, to avoid the chance of an actual agreement. Contrast with the renegotiation of NAFTA. Clear, specific demands in areas they knew would be open to negotiation. In the end, fairly minor updates and a workable deal.
    - busymom0 7y ago
      > It’s not going to work, but that’s what he keeps saying. So far it has worked very well for the US and China has been suffering. US has been able to create 6 million jobs with 2 million manufacturing jobs alone created since his election. China has lost a lot of manufacturing jobs and a lot of manufacturers are moving away from China and either coming back to US or moving to places like India where IP theft isn't a huge problem. US economy is also doing very well, GDP growth has beaten all expectations and what not.
      - astronautjones 7y ago
        > So far it has worked very well for the US and China has been suffering. US has been able to create 6 million jobs with 2 million manufacturing jobs alone created since his election. this is nonsense. in what sectors?
        busymom0 7y ago
        Why would you call a stat nonsense? Here's sources. Note that they are from few months ago and the number has been growing since then: > The Trump Scoreboard shows that 5.4 million new jobs have been created under the 45th president. https://www.marketwatch.com/story/trump-scoreboard-shows-acceleration-in-jobs-growth-even-with-unemployment-rate-at-new-lows-2019-05-03 https://www.marketwatch.com/story/trump-scoreboard-shows-acc... https://www.forbes.com/sites/chuckdevore/2019/02/01/manufacturers-added-6-times-more-jobs-under-trump-than-under-obamas-last-2-years/#adb26485635a https://www.forbes.com/sites/chuckdevore/2019/02/01/manufact... https://www.forbes.com/sites/chuckdevore/2019/03/11/trumps-policy-magic-wand-boosts-manufacturing-jobs-399-in-first-26-months-over-obamas-last-26/#317ba99520a6 https://www.forbes.com/sites/chuckdevore/2019/03/11/trumps-p... https://www.wsj.com/articles/u-s-december-nonfarm-payrolls-grew-by-312-000-jobless-rate-rose-to-3-9-11546609016 https://www.wsj.com/articles/u-s-december-nonfarm-payrolls-g... https://www.wsj.com/articles/u-s-july-nonfarm-payrolls-grew-by-164-000-11564749103 https://www.wsj.com/articles/u-s-july-nonfarm-payrolls-grew-... https://www.cnsnews.com/news/article/terence-p-jeffrey/479000-under-trump-manufacturing-jobs-hit-highest-level-obama https://www.cnsnews.com/news/article/terence-p-jeffrey/47900... https://www.investors.com/politics/commentary/trumps-economy-creating-manufacturing-jobs/ https://www.investors.com/politics/commentary/trumps-economy...

Synaesthesia 7y ago

It should not be forgotten who initiated the tariff wars! It was Trump’s administration.