01-11-2016, 12:25 PM
This doesn't make much sense:
Donald Trump’s solution is to get tough on China by imposing steep new tariffs on products made in China. The Republican presidential candidate told the New York Times recently that he’d levy a 45% tax on Chinese imports. The idea is to make Chinese goods more expensive so that American producers who pay their workers more can gain a competitive edge.
Donald Trump wants you to pay more for smartphones, TVs and a lot else - Yahoo Finance
Is Trump aware that, rather than manipulating the yuan downwards, the Chinese are spending an inordinate amount of their foreign currency reserves in order to keep the yuan from falling? Last month alone forex reserves dwindled by a whopping $108B and are now at $3.3 trillion, significantly off the high of $4 trillion just a year ago.
The funny thing is, if the Chinese would stop manipulating their exchange rate, the yuan would drop significantly..