Donald Trump insults mainland China today; will it have any effect on markets on Monday?
CaptHenway
Posts: 32,144 ✭✭✭✭✭
Today Donald Trump took a congratulatory phone call from the President of Taiwan. No U.S. President, and darn little else of the U.S. government, has done so since 1979. The People's Republic of China is furious.
Will the PRC retaliate by cashing in some of its U.S. bonds, or at least refusing to buy any more? Will the recent rise in the U.S. dollar abruptly reverse itself? Will the recent drop in gold reverse itself?
Numismatist. 50 year member ANA. Winner of four ANA Heath Literary Awards; three Wayte and Olga Raymond Literary Awards; Numismatist of the Year Award 2009, and Lifetime Achievement Award 2020. Winner numerous NLG Literary Awards.
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Comments
Another not so subtle political thread.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
Agreed, to think a phone call would affect the markets is a pretty big stretch. I just googled it and I didn't see any articles mentioning that China is furious...?
it may or may not be in the news, but the Chinese won't like it.
I don't see much risk to the markets as the Chinese need someplace to park their money and our market is one of the big places.
the biggest risk is to Taiwan. The Chinese told the UK they'll have HK back or else. It was the same with Portugal and Macao. While there is no one holding Taiwan, and few countries even recognize it as a country (USA does not), they could always do or else. However, many Taiwanese businesses moved to China for cost reasons. About all that Taiwan has is a large foreign currency collection and the business' headquarters. (some fishing and earthquakes, too. I almost forgot the mudslides and high humidity plus dirty buildings.)
http://www.nytimes.com/2016/12/02/us/politics/trump-speaks-with-taiwans-leader-a-possible-affront-to-china.html?smid=fb-nytimes&smtyp=cur
No mention of China being insulted or furious, it talks about potentially but China hasn't commented yet.
Although it was a minor blimp.
I see it does mention the sale of 1.8 billion in weapons sale from 2015
Careful there Capt, we'd miss you
Liberty: Parent of Science & Industry
Welcome to Jerry Springer world
PCGS does not equal politics....
Another report:
https://www.theguardian.com/us-news/2016/dec/03/trump-angers-beijing-with-provocative-phone-call-to-taiwan-president
My wife worked for the State Department for over 25 years. She understands how the Chinese would react to something like this, and they ain't happy no matter what they might or might not have said...yet.
China has been so wonderful! Building new "reefs" in the South China Sea, testing new hypersonic missiles and debuting war tech after war tech , all stolen from us.
Why would we doing anything to anger our beautiful masters???
You have forgotten how real power works after 8 years of Mom Jeans. How about we pick up the phone from anyone we damn well please?
Loves me some shiny!
Who hasn't he insulted?
Was he supposed to ignore the call??? I would wager the current administration takes calls as well.... perhaps they just do not get publicized.....Hmmm publicized.... yep, looks like the media is making sure any potentially negative news gets visibility..... Cheers, RickO
The U.S. State Department scrupulously avoids any official contact with Taiwan. I have a friend I grew up with who went to work with the State Department after college. When he was up for a tour of duty in Taiwan in the 1980's, he had to formally resign from the State Department, work there four years as a private civilian, and then after he returned to Washington D.C. formally apply to be rehired. These are the rules of the game.
the US State Department scrupulously avoids saving the lives of Americans when those lives are threatened by muslim criminals. So perhaps the DOS can go pound sand?
The Capt chastises for political posts. Payback?
This topic certainly has gotten off he market impact talk.
Market impact - none. All they did was file a complaint.
@CaptHenway...Who paid your friend's wages?? That seems very strange... sort of a cover up.... Cheers, RickO
I remember when Obama kept his Blackberry phone against the advice of the state department. Then the stock went from $138 to under $8.
.
Let's hope Chinese food drops in price like that.
Americans continue to buy Chinese made products by the cartload.
the same country who allows knock off coins to enter our market. Anger away mfers.
Tempest in a teapot.... Chinese tea at that....
Cheers, RickO
http://www.express.co.uk/news/world/739482/China-official-complaint-Donald-Trump-Taiwan-phone-call
I think this is small now but with the capacity to affect metals prices hugely.
China owns a lot of gold and even MORE US debt.
If Trump decides to tweak the Chinese, all the gold pooh-pooh'ers on here are going to be TRYING to liquidate dreck to buy bullion.
Or so I firmly believe.
When I saw that in the news yesterday, it reassured me of the desirability of having an enormous stash of bullion AND .....good coins.
Nowadays,,,,,EVERYTHING is political and don't you forget it.
Sounds like the beginning stage of a negotiation to me. Trump's bold position - "sure, I'll take the phone call."
I knew it would happen.
Political threads disguised as being pertinent really suck.
People just can't get politics, and wanting to push their views, out of other people's lives......
I've been told I tolerate fools poorly...that may explain things if I have a problem with you. Current ebay items - Nothing at the moment
China responds to Trump's threat to end "One China Policy."
http://www.aol.com/article/news/2016/12/12/serious-concern-in-beijing-at-trumps-threat-to-end-one-china/21625890/
probably quit buying US debt. . . oops, they already did that.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Current "One-China" Policy:
1: Don't SAY anything to upset them. The list is long an complex.
2: Don't DO anything to upset them. The list is long an complex.
3: The U.S cannot just call just anyone they please. Check with China consulate BEFORE dialing.
4: China will hack who and what they please! Your getting your big political donations as promised so keep your pie hole shut.
5: China will steal state and corporate secrets as they please. You sold your soul to save a few bucks on gadgets, so it's not like we believe you really care ("look over here...Pokemon!")
I hope Trump rains down uncertainty and fear on a militant, inflated and arrogant Chinese ego. And I hope that spurns them to buy SILVER!
Loves me some shiny!