MAGAthon Continues................................................................................................................... 3rd Quarter U.S. GDP Growth Revised Upward, Durable Goods Orders Increase, New Home Sales Increase 31.6% Year-over-Year... . . More signs the U.S. economy is very strong show up today as several key economic indicators defy prior economist predictions. Staring with a significant upward revision by the Bureau of Economic Analysis for the third quarter GDP growth from 1.9% to 2.1%: **The revision to GDP reflected upward revisions to inventory investment, business investment, and consumer spending. The increase in consumer spending reflected increases in both goods (notably recreational goods and vehicles as well as food and beverages) and in services (led by housing and utilities as well as food services). (link) https://ift.tt/2soICgm Additionally, the commerce department released data showing U.S. core capital goods orders increased 1.2% in November, the largest gain since January; and more data on home sales shows a whopping 31.6% increase year-over-year. U.S. consumers and home buyers are benefiting from low inflation and significant blue collar wage gains that are an outcome of a growing economy and a very strong jobs market. The most significant wage growth is in non-supervisory positions. The economic strength is broad-based and the U.S. middle-class is confident. . . . . . https://ift.tt/2DmLwo2 . . . . . PRESIDENT TRUMP CHINA STRATEGY: DEATH BY A THOUSAND PAPER CUTS.... The New York Federal Reserve made a quiet admission two days ago that was missed by almost all financial media. In the NY Fed economic blog they admitted everyone was wrong, President Trump's 2017 tariffs against China did not lead to increased U.S. consumer prices [Read Here]. The Fed also said imports of the Chinese products affected by U.S. tariffs have fallen by an annualized $75 billion. That's a huge chunk of business U.S. purchasers have shifted to Japan and other Southeast Asian countries. . . . Within this dynamic lays the real reason why Beijing cannot wait for a 2020 election hoping that Biden or Bloomberg can stop their bleeding. Before going into more depth, this brief explainer from Charles Payne will help establish a framework. WATCH: What Payne outlines is correct; however, the internal Chinese 'tariff-offset' dynamic is actually even a little deeper. Overlaying the NY Fed research we can see that Beijing has attempted to offset the Trump tariffs in four majority ways: **A devaluation of their currency by roughly 10% since the tariffs were implemented. This makes the dollar a higher value when purchasing. The U.S. dollar purchases more stuff. **Direct subsidies by the communist control authority. That is a direct payment to the exporting Chinese company to offset the drop in prices they may need to be competitive. **Indirect subsidies. Remember, China is a communist system. Beijing can tell a province to cancel the electricity bill to a company within that province. Beijing absorbs the cost. **Incentives for enhanced end-product delivery. As Payne noted in the video the Chinese company just give the purchaser more stuff at the same price. That additional stuff offsets the tariff cost. This free stuff shows up in new contract terms. All of this is an effort by China to diminish the impact of U.S. tariffs against their exports. However, all of this cumulative effort, while small in the individual pieces, when added up is a big economic cost to Beijing. Thus the overall economic loss is starting to snowball as the accumulation of offsets is beginning to aggregate. They cannot continue indefinitely. Chinese State Councillor Wang Yi: "There is no way out for the zero-sum games of the United States. Only win-win cooperation between China and the United States is the right path." China is suffering a slow death by a thousand paper-cuts. The bleeding of cash in combination with the direct loss of $75 billion in annualized exported products that U.S. companies have now sourced from alternative ASEAN nations is biting hard. . . Continue Reading..... https://ift.tt/2QZXrzZ Beijing Global Supremacist Bullies are very angry about how a U.S. President is disrupting a new world economic order that China has so artfully manipulated for the past two decades. . . . . .
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