August 27, 2018
Have their schemes been defeated once and for all?
Chinks may be full of plots and tricks, but there’s one thing they don’t have.
They just don’t know about WINNING.
Winning, as it turns out, is Trump’s specialty.
He just wins, and wins, and wins…
So China never really stood a chance, did they? They should have chosen a battlefield more suited to their strengths.
Like a dog-eating contest or whatever.
China’s central bank altered how it manages the country’s currency, signaling that authorities have no intention of using the yuan as a weapon in the ongoing trade war with the United States, analysts said.
The Chinese are bowing down!
“We stop chinkey protting now. We bow to Donard Trump. Much sorry.”
The yuan has come under intense pressure in recent weeks on concerns about the outlook for the Chinese economy, the world’s second largest, in part resulting from the ongoing tariff conflict with the U.S. On Friday, the People’s Bank of China appeared to respond to that pressure, announcing that it was reintroducing a calculation method it called a “counter-cyclical factor” to keep the yuan’s daily midpoint fixed to a relatively stable value.
Basically, if the Yuan is stable, then the Chinese can’t devalue their currency in order to gain a trade advantage over the United States. This was a major talking point of Trump’s during the elections.
Well, they ain’t doing that anymore.
There can be absolutely no doubt that this is a direct response to Trump’s rhetoric – meaning that getting China to stop manipulating their currency can be counted as one of Trump’s achievements, and the fulfillment of one of his campaign promises.
In this case, Beijing is poised to fight the traders dragging the yuan’s value lower against the dollar. The currency, also known as the renminbi, is fixed daily by Chinese authorities against the U.S. dollar at a midpoint from which it can move as much as 2 percent in either direction, with a basket of other major currencies also a factor.
Mizuho Bank said that the “counter-cyclical factor” does not inherently include a directional bias for the yuan and is instead meant to keep it relatively stable against other currencies.
The yuan’s value against the dollar has factored into the trade war because its decline has lessened the impact of American tariffs on Chinese products. U.S. President Donald Trump latched onto that point, accusing Beijing of unfair practices on the foreign exchange front.
“I think China’s manipulating their currency, absolutely,” Trump told Reuters last week.
In general, a weaker currency can help a country’s export performance by making its products cheaper to those in other countries and thus more competitive in global markets.
The PBOC’s move could be “seen as a coded signal for a CNY strengthening policy,” Mizuho said in a note on Monday, using an abbreviation for the Chinese yuan.
Importantly, the Japanese bank said that the step underscores that the yuan weakness “is not a weapon” in the trade conflict.
This is a complete capitulation on the part of the Chinese, and can be interpreted as them begging for mercy.
A billion chinks wept as their currency was savagely locked down to a fixed value.
Well, at the very least, they’re starting to take negotiations very seriously. They understand that Trump isn’t bluffing, and is willing to ravage their economy if a fair deal isn’t worked out.
The era where China rode on an America-sponsored gravy train has come to an end.
A new era is dawning – an era of deals, and of WINNING.