{"id":35317,"date":"2018-06-21T06:03:55","date_gmt":"2018-06-21T11:03:55","guid":{"rendered":"http:\/\/olduvai.ca\/?p=35317"},"modified":"2018-06-21T06:05:08","modified_gmt":"2018-06-21T11:05:08","slug":"trade-end-game-scenarios-boycott-treasuries-vs-yuan-devaluation","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=35317","title":{"rendered":"Trade End Game Scenarios: Boycott Treasuries vs Yuan Devaluation"},"content":{"rendered":"
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Trade End Game Scenarios: Boycott Treasuries vs Yuan Devaluation<\/a><\/h3>\n<\/div>\n
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Since there is no longer any reasonable debate about a trade war having started, let’s investigate how it ends.<\/section>\n<\/div>\n<\/header>\n
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End Game Analysis<\/strong><\/p>\n<\/div>\n<\/div>\n<\/div>\n

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The end-game retaliation comes via a global boycott of the Treasury auctions. Foreign entities fund half the US fiscal deficit, which is set to double. Imagine the locals funding their own budget gap!<\/p>\n

This forces the savings rate up at the expense of spending. Recession follows.<\/p>\n