Trump's trade war with China

[Sandy Shanks]

"If anyone had doubts that trade was the thing hanging over the market, today seals it," said Bill Stone, chief investment officer with Avalon Investment & Advisory.

Tariffs on popular consumer goods like clothing, shoes, computers, and cell phones cause higher prices. Even Trump admitted that yesterday. Higher prices cause inflation. Inflation causes less demand. Less demand causes unemployment. Tariffs cause recession, Econ 101.

When Americans suffer investment losses it causes permanent loss of principle, fourth grade math. Millions of Americans permanently lost more of their principle in investment accounts today.

As things stand now, the Dow has lost over 575 points, the Nasdaq over 200 points, and the S&P over 65 points. The reason: Stocks plunged on Wednesday, giving back Tuesday’s solid gains, after the U.S. bond market flashed a troubling signal about the U.S. economy, a recession warning.

There have been five such warnings of the 2-year and 10-year yields since 1978 and all were precursors to a recession.

Dow tanks 800 points in worst day of 2019 after bond market sends recession warning

Today, the Dow is at 25,690. On March 15, the Dow was 25,440. Because of Trump's trade war with China, the market has been treading water for five months. Stock Market News For Feb 15, 2019

I have been a student of current political history for over a half century, and I am a retired columnist. Never in my 50 years have I seen a U.S. President repeatedly harm our economy and cause investment losses. The current President is doing that very thing. The past three weeks prove it.

We are reminded that Trump was Putin's personal choice to become our President.

 

[Sandy Shanks]

As things stand now, the Dow has lost over 575 points, the Nasdaq over 200 points, and the S&P over 65 points.

Today, the Dow is at 25,690. On March 15, the Dow was 25,440. Because of Trump's trade war with China, the market has been treading water for five months.

Here is an update on those figures. Matters are far worse than my earlier report.

The Dow is down 800 points, the Nasdaq is down 242 points, and the S&P is down 86 points. The Dow is currently at 25,480, 40 points higher than it was five months ago.

Naturally, Trump and Trump's Democrat, Peter Navarro, the architect of the trade war with China, are both blaming the Fed, according to the Trump Network, otherwise known as Fox News.

“This is basically the Federal Reserve’s problem,” Navarro said. “They are causing this because when Jay Powell got in this chairman he proceeded to rein in interest rates by at 100 interest points, too far too fast. Even though the Trump economy is rock solid, it slowed us down a bit because of those higher interest rates.”

Trump joined the chorus, tweeting, "The Fed has got to do something! The Fed is the Central Bank of the United States, not the Central Bank of the World."

This, of course, is good for my health. If Trump ever accepted blame for his screwed up policy and apologized, I might have a coronary.

What Trump and his Democrat are saying is meant for his base. They are gullible enough to believe it. No one else will.

Let's take a look at the facts. On August 1, Trump announced a 10% tariff on $300B of Chinese goods that are popular with American consumers, clothing, shoes, computers, cell phones, etc. That precipitated the worst week of the year for the stock market. The following Monday, August 5, Trump's announcement caused the worst day of the year. The Dow plunged 760 points.

On August 12, the Dow lost 391 points, but then on August 13 The US Trade Representative announced a delay of Trump's tariffs on several categories of Chinese-made consumer goods until December 15. Those goods include cell phones, laptop computers, video game consoles, certain toys, computer monitors, and certain items of footwear and clothing, and the Dow shot up more than 400 points.

Tariffs on popular consumer goods cause higher prices. Even Trump admitted that yesterday. Higher prices cause inflation. Inflation causes less demand. Less demand causes unemployment. Tariffs cause recession, Econ 101.

Today, August 15, the stock market set another record. Now it is the worst day of the year. The reason, recession fears. The Times reports, "Trade-war worries hammered financial markets again on Wednesday as data from Germany and China showed trouble for manufacturing-reliant economies, while the bond market renewed fears of an American recession."

But our President thinks the Fed is to blame. The complete lack of comprehension on the part of our current President never ceases to amaze me.

"If anyone had doubts that trade was the thing hanging over the market, today seals it," said Bill Stone, chief investment officer with Avalon Investment & Advisory.

 

[Rambunctious]

CHILL....the market will come roaring back....the tariffs are a necessary evil we must support and endure for future economies...this drop today was a result of several things that have popped up.....and the fact that the hate Trump media are trying to bring on a recession.....or the fear of one....

 

[Thinker101]

"If anyone had doubts that trade was the thing hanging over the market, today seals it," said Bill Stone, chief investment officer with Avalon Investment & Advisory.

Tariffs on popular consumer goods like clothing, shoes, computers, and cell phones cause higher prices. Even Trump admitted that yesterday. Higher prices cause inflation. Inflation causes less demand. Less demand causes unemployment. Tariffs cause recession, Econ 101.

When Americans suffer investment losses it causes permanent loss of principle, fourth grade math. Millions of Americans permanently lost more of their principle in investment accounts today.

As things stand now, the Dow has lost over 575 points, the Nasdaq over 200 points, and the S&P over 65 points. The reason: Stocks plunged on Wednesday, giving back Tuesday’s solid gains, after the U.S. bond market flashed a troubling signal about the U.S. economy, a recession warning.

There have been five such warnings of the 2-year and 10-year yields since 1978 and all were precursors to a recession.

Dow tanks 800 points in worst day of 2019 after bond market sends recession warning

Today, the Dow is at 25,690. On March 15, the Dow was 25,440. Because of Trump's trade war with China, the market has been treading water for five months. Stock Market News For Feb 15, 2019

I have been a student of current political history for over a half century, and I am a retired columnist. Never in my 50 years have I seen a U.S. President repeatedly harm our economy and cause investment losses. The current President is doing that very thing. The past three weeks prove it.

We are reminded that Trump was Putin's personal choice to become our President.

So...did Mr. Bill suggest you withdraw all your investments?

 

[C_Clayton_Jones]

Trump's trade war with China is a failure, as is Trump's 'presidency.'

 

[Staidhup]

America can least afford to become China’s dumping ground not less allow them to hold intellectual property as a bargaining chip required in accessing their market. To some this is not a problem to others it is. China is playing their hand in the attempt to force trump to fold granting them full control. In the event Trump folds the US economy will eventually collapse, unemployment will escalate, manufacturing grind to a halt.

 

[sparky]

China could care less about 3% of their economy

~S~

 

[FA_Q2]

America can least afford to become China’s dumping ground not less allow them to hold intellectual property as a bargaining chip required in accessing their market. To some this is not a problem to others it is. China is playing their hand in the attempt to force trump to fold granting them full control. In the event Trump folds the US economy will eventually collapse, unemployment will escalate, manufacturing grind to a halt.

This assumes that communist China is more efficient than capitalist USA.

I would argue that capitalism has proven far more efficient and effective at bringing a product to market than socialism.

 

[Crepitus]

"If anyone had doubts that trade was the thing hanging over the market, today seals it," said Bill Stone, chief investment officer with Avalon Investment & Advisory.

Tariffs on popular consumer goods like clothing, shoes, computers, and cell phones cause higher prices. Even Trump admitted that yesterday. Higher prices cause inflation. Inflation causes less demand. Less demand causes unemployment. Tariffs cause recession, Econ 101.

When Americans suffer investment losses it causes permanent loss of principle, fourth grade math. Millions of Americans permanently lost more of their principle in investment accounts today.

As things stand now, the Dow has lost over 575 points, the Nasdaq over 200 points, and the S&P over 65 points. The reason: Stocks plunged on Wednesday, giving back Tuesday’s solid gains, after the U.S. bond market flashed a troubling signal about the U.S. economy, a recession warning.

There have been five such warnings of the 2-year and 10-year yields since 1978 and all were precursors to a recession.

Dow tanks 800 points in worst day of 2019 after bond market sends recession warning

Today, the Dow is at 25,690. On March 15, the Dow was 25,440. Because of Trump's trade war with China, the market has been treading water for five months. Stock Market News For Feb 15, 2019

I have been a student of current political history for over a half century, and I am a retired columnist. Never in my 50 years have I seen a U.S. President repeatedly harm our economy and cause investment losses. The current President is doing that very thing. The past three weeks prove it.

We are reminded that Trump was Putin's personal choice to become our President.

1 year ago the dow was 25,162.41, today it ended at 25,497.42

Pretty much flat for the whole year.

 

[Sandy Shanks]

CHILL....the market will come roaring back....the tariffs are a necessary evil we must support and endure for future economies...this drop today was a result of several things that have popped up.....and the fact that the hate Trump media are trying to bring on a recession.....or the fear of one....

Trump has been saying that for two years. Matters are worse now than they ever have been. Wall street has been treading water for five months.

Funny thing about Trump. With him all the good stuff is always in the future. He has accomplished nothing. He has only harmed the economy, the Iranian problem is worse, our allies do not trust him, his deranged rhetoric inspired three killers, and he continues to set record lows on Wall Street.

What do you like about him?

 

[Sandy Shanks]

With reporters Trump has chosen who dare not challenge his many lies, Trump lied his way through another news conference today. This time it appeared he held it on an airport tarmac, not the White House lawn as he usually does. The usual background noise of propeller blades was present, drowning out reporters' questions. We can only assume what the question was based on Trump's shouted deceitful reply.

For example, once again Trump bragged about how his treasury was taking in billions of dollars, not daring to mention that is being paid by the American consumer. He told us how China is losing millions of jobs as manufacturing is moving out of China. He did not say where he got that information, mostly because he just made it up.

The complying reporters did not question his lies. They continued with their softball questions that allowed Trump to make short speeches.

Trump is scared to death of conducting a full-blown press conference in the White House press room with the entire White House press corps. Those reporters are not bashful about asking follow-up questions and revealing lies told by the President.

Which explains why Trump has held only two press conferences in 31 months. The last over a year ago, both were disasters for him, and he will not hold another. There hasn't been a press conference by his press secretary in months.

Trump has become the secret President. He has to hide.

 

[candycorn]

It’s not much of a war. More like a one sided slaughter and we’re on the losing end

 

[Rambunctious]

CHILL....the market will come roaring back....the tariffs are a necessary evil we must support and endure for future economies...this drop today was a result of several things that have popped up.....and the fact that the hate Trump media are trying to bring on a recession.....or the fear of one....

Trump has been saying that for two years. Matters are worse now than they ever have been. Wall street has been treading water for five months.

Funny thing about Trump. With him all the good stuff is always in the future. He has accomplished nothing. He has only harmed the economy, the Iranian problem is worse, our allies do not trust him, his deranged rhetoric inspired three killers, and he continues to set record lows on Wall Street.

What do you like about him?

The economy is too strong for the markets to stay down....that so called inverted curve they say is a sign of recession is not a sign of anything...they are lying to you...its a tool used for buying or selling dividends...nothing more....don't fall for it...

 

[Rambunctious]

CHILL....the market will come roaring back....the tariffs are a necessary evil we must support and endure for future economies...this drop today was a result of several things that have popped up.....and the fact that the hate Trump media are trying to bring on a recession.....or the fear of one....

Trump has been saying that for two years. Matters are worse now than they ever have been. Wall street has been treading water for five months.

Funny thing about Trump. With him all the good stuff is always in the future. He has accomplished nothing. He has only harmed the economy, the Iranian problem is worse, our allies do not trust him, his deranged rhetoric inspired three killers, and he continues to set record lows on Wall Street.

What do you like about him?

60,000 jobs created since 2016...Obama could have done that....but he didn't...why?...Trump made it look easy and he is the first president in my lifetime that is truly working for the little guy...not the rich and connected elites...you I assume are siding with the super connected entrenched wealthy class....I'm siding with blue collar workers that make the economy work...I don't know Trump Sandy...so I can't tell you if I like him...but I like his agenda...Americans and America first....

 

[Harpy Eagle]

CHILL....the market will come roaring back....the tariffs are a necessary evil we must support and endure for future economies...this drop today was a result of several things that have popped up.....and the fact that the hate Trump media are trying to bring on a recession.....or the fear of one....

Trump has been saying that for two years. Matters are worse now than they ever have been. Wall street has been treading water for five months.

Funny thing about Trump. With him all the good stuff is always in the future. He has accomplished nothing. He has only harmed the economy, the Iranian problem is worse, our allies do not trust him, his deranged rhetoric inspired three killers, and he continues to set record lows on Wall Street.

What do you like about him?

The economy is too strong for the markets to stay down....that so called inverted curve they say is a sign of recession is not a sign of anything...they are lying to you...its a tool used for buying or selling dividends...nothing more....don't fall for it...

The DJI opened today below where it was 570 days ago at the start of Trumps trade war.

 

[Harpy Eagle]

CHILL....the market will come roaring back....the tariffs are a necessary evil we must support and endure for future economies...this drop today was a result of several things that have popped up.....and the fact that the hate Trump media are trying to bring on a recession.....or the fear of one....

Trump has been saying that for two years. Matters are worse now than they ever have been. Wall street has been treading water for five months.

Funny thing about Trump. With him all the good stuff is always in the future. He has accomplished nothing. He has only harmed the economy, the Iranian problem is worse, our allies do not trust him, his deranged rhetoric inspired three killers, and he continues to set record lows on Wall Street.

What do you like about him?

60,000 jobs created since 2016...Obama could have done that....but he didn't...why?...Trump made it look easy and he is the first president in my lifetime that is truly working for the little guy...not the rich and connected elites...you I assume are siding with the super connected entrenched wealthy class....I'm siding with blue collar workers that make the economy work...I don't know Trump Sandy...so I can't tell you if I like him...but I like his agenda...Americans first....

60,000 jobs?? Are you sure about that number?

 

[Sandy Shanks]

On August 1, Trump announced a 10% tariff on $300B of Chinese goods popular with the American consumer. That week was the worst week of 2019 on Wall Street. The following Monday, August 5, was, at the time, the worst day of 2019.

Things were getting so bad, on August 13, Trump backed off on the 10% tariff. Stocks rebounded, but not for long. On August 14, the Dow lost over 800 points and that became the new worst day for 2019.

Currently, after a 300 point rally Friday and a 250 point rally today, we are only 425 points higher than we were five months ago. Stock Market News For Mar 15, 2019

As everyone can plainly see, all that took place within two weeks, and every bit of it was caused by Trump's trade war with China and his harsh tariffs, whether they became real or not.

This didn't stop Trump from lying through his teeth about who was responsible. He talks only to his base, and his gullible base believes every word of it.

Denying the reality of the economic setbacks on Wall Street, Trump said, "Our Economy is very strong." Then he immediately changed his tune and hinted at a recession, blaming the Fed for "horrendous lack of vision by Jay Powell and the Fed."

Then he blamed the Democrats. He said, "the Democrats are trying to 'will' the Economy to be bad for purposes of the 2020 Election." He was lying, offering no evidence to support that claim. He just made it up.

While he was at it, Trump then blamed the media. “The Fake News Media is doing everything they can to crash the economy because they think that will be bad for me and my re-election,” Trump tweeted. He made that up, too.

But, if "Our Economy is very strong" what is Trump talking about? I doubt he knows.

Insisting that the world is against him, Trump blames Google for voter fraud.



Donald J. Trump ✔ @realDonaldTrump

Wow, Report Just Out! Google manipulated from 2.6 million to 16 million votes for Hillary Clinton in 2016 Election! This was put out by a Clinton supporter, not a Trump Supporter! Google should be sued. My victory was even bigger than thought! @JudicialWatch

8:52 AM - Aug 19, 2019

:clapping::roflol:

I rest my case. Trump is not a well man. More and more he is sounding like a man with a paranoid psychosis.

 

[Sandy Shanks]

Trump did it again. This is surreal.

President Donald Trump appears to have sent the stock market into a dive with a few flicks of his fingers, as the Dow Jones Industrial Average plunged over 200 points in just five minutes following a series of unhinged tweets attacking China and Federal Reserve Chairman Jerome Powell.

At 10:57 Friday morning, Trump posted a tweet in which he asked “who is our bigger enemy, Jay Powell or Chairman Xi?”

Then two minutes later, Trump posted a series of tweets ranting against China in which he said, among other things, that “We don’t need China and, frankly, would be far better off without them,” and that American companies are “hereby ordered to immediately start looking for an alternative to China.”

https://www.mediaite.com/news/stock...5-minutes-after-trumps-stunning-china-tweets/

We are reminded that Putin wanted this man to become our President. No doubt, Putin is quite happy with his choice.

 

[Sandy Shanks]

These are final results of our day on Wall Street. Trump's precipitated drop on stocks is far worse than earlier. The Dow ended up off 623 points, reducing the Dow to 25,629. that is 81 points below March 15 when Trump started his trade war with China. The Nasdaq was off 240 points and the S&P 76.

What does all that mean? Because of Trump's tweets today, for the fourth time in a month, he cost millions of Americans to permanently lose principle in their retirement investment accounts. There are many doubters of that statement, but here is how that works.

It is really quite simple. It is 4th grade math.

An IRA has $100,000 dollars in it. Because of Trump's announcement the account loses $5,000. So now the account is down to $95,000. Follow me so far?

Due to market changes, at some point the account gains $5,000. So now the account is back up to $100,000. So, the account didn't lose money. Right?

WRONG! If the account had not lost the money in the first place, when market changes caused it to gain $5,000, the account would have $105,000 in it, not $100,000. The $5,000 lost because of Trump is permanent.

Sorry about that. I mean it. I lost, too, but I'm mostly in bonds. Too old to gamble.

Now I know what some are going to say. Some will say that is ridiculous or something similar. Some will lecture me on the stock market and investing. But no will be able to tell me why the 4th grade math is ridiculous or something similar. That's because the 4th grade math is right on.

Some will say, "Nothing is permanent until it is sold." That argument is made to counter selling stocks because of a downward trend. It has nothing to do with loss of principle, which is what I am talking about.

Thank you Mr. President. I look forward to your next tweet. Praise the Lord. It is the weekend. Trump can't do anymore damage until Monday.

 

[Sandy Shanks]

Trump just made matters far worse. To him, this is a zero sum game. He simply doesn't care.




Donald J. Trump ✔ @realDonaldTrump


Replying to @realDonaldTrump
...unfair Trading Relationship. China should not have put new Tariffs on 75 BILLION DOLLARS of United States product (politically motivated!). Starting on October 1st, the 250 BILLION DOLLARS of goods and products from China, currently being taxed at 25%, will be taxed at 30%...



Donald J. Trump ✔ @realDonaldTrump


Replying to @realDonaldTrump
...Additionally, the remaining 300 BILLION DOLLARS of goods and products from China, that was being taxed from September 1st at 10%, will now be taxed at 15%. Thank you for your attention to this matter!

Did Trump forget he postponed the September 1st tariffs until December 15th?

If he imposes what now is a 15% tariff on popular goods like computers, cellphones, sporting gear, clothing, tennis shoes, etc. Trump can kiss his reelection goodby along with several Republican Senators and representatives.

Trump waited until the market closed before sending those tweets.