Loading ...Obviously there’s an element of destroying, or at least reducing, China’s manufacturing base – and everybody else’s. That’s Trump’s stated intention of tariffs, to bring manufacturing back to the US. A new tyre factory in the US means less manufacturing in China. But why the 90 day suspension of tariffs on all the good children who brought teacher an apple today? How does that fund the abolition of income taxes and recreate America’s industries? This, together with extra tariffs for China, means he is trying to force them to the table. What if they still don’t come, but retaliate through other means – like rare earths, selling their remaining treasuries or devaluation? And what happens at the end of 90 days? Isn’t that just building more uncertainty? So much can happen in 90 days. He hasn’t been president that long yet!
And that supposedly stellar 10yr auction, where the directs caught even ZH out by missing their expectation of a poor ~7% by coming in at an atrocious 1.4%? The auction was only a stellar success (at a yield of about 10% higher than it was on Monday) because of foreign buyers. I’d love to know whether the Belgians were a significant purchaser like they were in previous crises.