8/2/2018 – Another mixed day with the Dow Jones down 8 points (-0.03%) and the Nasdaq up 95 points (+1.24%)
All in all, today was very positive for our overall forecast.
First, the market was able to …… If you would like to find out what happens next, based on our mathematical and timing work, in both price and time, please Click Here.
As we have discussed here over the last few months, Trump’s trade war on nearly everyone is beyond idiotic. He is blaming the wrong people for the trade deficit. In fact, his stance is so wrong that it is equivalent to blaming the Jews for the holocaust during second World War.
The real culprits are the Federal Reserve for distorting our monetary policy to the 10th degree and the American corporations who manufacture overseas and then proceed to import the good into the country. The latter are responsible for 60% of the said trade deficit with China.
Here is another very good look at the subject matter…..
US Trade Policy: Not Only are We Stupid, We are Hypocrites
Three Ways China Can Retaliate
- Let the Yuan slide 25% negating the tariffs.
- Further limit US firms ability to do deals in China
- Halt Rare Earth Exports. Rare earths are 17 minerals used to make cell phones, hybrid cars, weapons, flat-screen TVs, magnets, mercury-vapor lights, and camera lenses.
Option one has capital flight risks for China of course. But US tariffs pose numerous risks to the US and global economy as well.
Option two is a given.
Option three is rarely discussed, but China has at least 80% of the global market.
But wait, it gets worse, much worse. Apparently the race in Washington is on as to who can hit the Chinese the hardest.
Exclusive – David P. Goldman: Tariffs Are Not Enough to Beat China; U.S. Needs to ‘Seize Technological Leadership’
“There’s a very simple reason for it: if you look at what China exports to the United States, it’s overwhelmingly consumer goods, mainly consumer electronics,” he explained. “The biggest item is cell phones. Tim Cook has said Apple cannot produce their top-of-the-line smartphone in the United States because the Chinese have spent the last 30 years developing the specific skills they need to manufacture it there. We just don’t have them. It would take years to bring it back.”
In other words, the fools in power will keep pushing this thing until something breaks. And beaks it will. Throw in a massive stock/bond/real estate market bubbles and we have a real disaster waiting just around the corner.
If you would like to find out exactly when this disaster will hit, based on our timing and mathematical work, in both price and time, please Click Here.
