China does NOT blink in its economic fact off with Trump….
The US Stock Market is down almost 600 lints as I write this….
(It’s been dropping for days)
The US Fed interest move will have NO effect ….
Trump’s unexpected throw down to put a 25% MORE China import tax on Chinese goods is rattling world markets and economies….
The trade war between the United States and China may be about to enter a more dangerous phase, one that could saddle the global financial system with new risks at an already turbulent time.
China’s currency weakened past the psychologically important point of 7 to the American dollar for the first time in more than a decade, a move that reflects the growing severity of the trade warwith the United States and that could indicate Beijing’s growing desire to find ways to retaliate against President Trump.
That prospect shook world markets on Monday, as nervous investors looked for safe places to park their money. On Wall Street, shares tumbled more than 2 percent at the start of trading, after benchmark indexes in Asia and Europe fell 1 to 2 percent. Yields on United States Treasuries, which fall as prices rise, dropped as investors sought safety in government-backed bonds.
The question now is whether Beijing will fully weaponize its currency, allowing it to significantly weaken in value versus the American dollar. Such a move could prompt further retaliation by the Trump administration, which has already warned China against manipulating its currency and is planning to tax nearly all Chinese imports on Sept. 1.