Hooray! Trump and Xi Agree to Do Nothing
Investor's Business Daily reports Trump, Xi Agree To Halt New Tariffs To Contain China Trade War.
U.S. President Donald Trump and Chinese President Xi Jinping agreed to keep their trade war from escalating with a promise to temporarily halt the imposition of new tariffs as the world's two largest economies negotiate a lasting agreement.
The truce between the U.S. and China emerged after a highly anticipated dinner Saturday between Trump and Xi on the sidelines of the Group of 20 summit in Argentina. The leaders agreed to stop the introduction of new tariffs and intensify their trade talks, Chinese Foreign Minister Wang Yi told reporters hours later in Buenos Aires.
The White House called the meeting "highly successful," saying the U.S. will leave existing tariffs on $200 billion of Chinese goods at 10% and refrain from raising that rate to 25% as planned on Jan. 1. In exchange, the U.S. wants an immediate start to talks on Trump's biggest complaints about Chinese trade practices: intellectual property theft, non-tariff barriers and cyber theft.
China gets a delay. So does Trump amidst rising complaints from the automotive and farm sectors.
A delay in stupidity is always a good thing. Hooray!
Tariffs cannot possibly work because they attack the symptom of the problem, not the problem.
Trade imbalances are a symptom of the problem. Attacking symptoms cannot possibly work.
The problem is we have unfettered monetary printing globally, with no controls anywhere. This all started the moment Nixon closed the gold window.
Total; credit market debt was roughly $1.7 trillion when Nixon closed the gold window. At last report, it was $68.6 trillion. The Fed discontinued the total credit market series in the fourth quarter of 2017.
It takes massive amounts of increasing credit to produce relatively trivial increases in GDP.
We have now have unfunded wars, massive deficits, and a stockpile of $21 trillion in debt. The MMT crowd wants still more debt.
If debt fixed the problem we would not have a problem. The US, Japan and Italy prove debt does not fix the problem.
Gold vs Faith in Central Banks
Everything Under Control?
If you don't think so, buy gold.
Mike "Mish" Shedlock