I have been warning people for months that Trump’s baseless and pointless trade war will eventually do massive damage to the US Economy and the stock market. Yet, not even I couldn’t have foreseen the latest stunt.
Trump seeks curbs on Chinese investment in U.S. tech firms, exports to China
President Donald Trump, already embroiled in a trade battle with China, plans to ratchet commercial tensions higher by barring many Chinese companies from investing in U.S. technology firms, and by blocking additional technology exports to Beijing, said people familiar with administration plans.
The twin initiatives, set to be announced by the end of the week, are designed to prevent Beijing from moving ahead with plans outlined in its “Made in China 2025” report to become a global leader in 10 broad areas of technology, including information technology, aerospace, electric vehicles and biotechnology.
That is about as stupid and reckless as it gets. And I am not the only one who thinks that way.
Things Just Went Nuclear In Our Trade War With China, And A Giant Shockwave Is About To Hit The U.S. EconomyIt is difficult to find the words to describe just how serious America’s trade war with China is becoming. As you will see below, the two largest economies on the entire planet are on a self-destructive course that almost seems irreversible at this point. The only way that this trade war is going to come to a rapid conclusion is if one side is willing to totally submit and accept an extremely bitter and humiliating defeat on the global stage, and that is not likely to happen. So in the short-term, and probably beyond that, we are going to experience a tremendous amount of economic pain.
In fact, if one wanted to create a recipe for economic disaster, it would be hard to beat having the Federal Reserve dramatically raise interest rates at the exact same time that the U.S. government is starting trade wars with all of the other major economic powers simultaneously. Unless something drastically changes in the very near future, there is no way that the U.S. is going to be able to get through this without experiencing severe pain.
Simply put, this is a disaster in the making when your country relies on Chinese Treasury buying to sustain its highly speculative and leveraged economy. Throw in extremely overpriced stock market, rising interest rates and the FED tightening cycle……. and, well, you have a recipe for an explosive disaster.
Our mathematical and timing work tends to agree, if you would like to find out what the stock market will do next and/or when it craters, please Click Here