{"id":46184,"date":"2019-05-17T06:54:26","date_gmt":"2019-05-17T11:54:26","guid":{"rendered":"https:\/\/olduvai.ca\/?p=46184"},"modified":"2019-05-17T06:54:29","modified_gmt":"2019-05-17T11:54:29","slug":"prepare-for-trench-warfare","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=46184","title":{"rendered":"Prepare for Trench Warfare"},"content":{"rendered":"\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/dweaay7e22a7h.cloudfront.net\/wp-content_3\/uploads\/2019\/05\/trade_deal_china_usa.jpg\" alt=\"Prepare for Trench Warfare\"\/><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><a href=\"https:\/\/dailyreckoning.com\/prepare-for-trench-warfare\/\">Prepare for Trench Warfare<\/a><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">What if China isn\u2019t half so desperate for a deal as the president believes?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Are we in for an extended siege of economic trench warfare?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Today we explore possibilities\u2026 and their implications.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">We first direct our gaze to Wall Street.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Investors came crouching from their shelters this morning\u2026 as if expecting an aftershock to the quake that drove them underground yesterday.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">With Monday\u2019s 617-point battering \u2014 piling atop last week\u2019s losses \u2014 three months of stock market gains have vanished into the ether.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The S&amp;P 500 endured its 15th-largest decline in history yesterday. It has shed $1.1 trillion since May 5 alone.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Markets Bounce Back<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But the Earth held today. And investors cleared away some of yesterday\u2019s wreckage.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Dow Jones rebounded 207 points.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The S&amp;P reclaimed 23 of the 70 points it lost yesterday. The Nasdaq gained 87.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Markets were encouraged by President Trump\u2019s comments that he will strike a deal with China \u201cwhen the time is right.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">He will have an opportunity at the G20 summit in late June. There he will meet China\u2019s Xi Jinping, for whom his \u201crespect and friendship is unlimited.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But is China sweating dreadfully for a trade deal as Trump assumes?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>China Braces for Escalation<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">China does \u2014 after all \u2014 ship some $500 billion of products to these shores each year.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It cannot afford to sit on them like a broody hen.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But you might have another guess, says the director of monetary policy at the People\u2019s Bank of China:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p><em>As for the change in the domestic and external economic environment, China has sufficient leeway and a deep monetary policy toolkit, and so has full ability to deal with [economic] uncertainties.<\/em><\/p><\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">But here we cite a government mouthpiece, a marionette in human form. You no more trust his word than you would trust a dog with your dinner.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&nbsp;\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Prepare for Trench Warfare What if China isn\u2019t half so desperate for a deal as the president believes? Are we in for an extended siege of economic trench warfare? Today we explore possibilities\u2026 and their implications. We first direct our gaze to Wall Street. Investors came crouching from their shelters this morning\u2026 as if expecting [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[15378,130,11023,1849,860],"class_list":["post-46184","post","type-post","status-publish","format-standard","hentry","category-economics","tag-brian-maher","tag-china","tag-daily-reckoning","tag-financial-markets","tag-wall-street"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/46184","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=46184"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/46184\/revisions"}],"predecessor-version":[{"id":46185,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/46184\/revisions\/46185"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=46184"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=46184"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=46184"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}