As the Screw Turns

turning screw

They’re at it again today, manipulating the barbarians.

New York Times, China Signals It Will Continue to Weaken Its Currency as Trade War Rages:

China’s central bank on Thursday set the midpoint of the renminbi’s daily trading range above 7 to the American dollar for the first time in more than a decade. The move in effect tells financial markets that Beijing expects the renminbi to continue to weaken versus the dollar, perhaps well past the 7-to-the-dollar level.

That is likely to provoke more ire from the Trump administration. A weaker currency helps Chinese factories offset the higher costs of Mr. Trump’s tariffs when selling their goods to the United States. …

China’s action suggesting that it expects the currency to weaken further will put more focus on the central bank’s daily midpoint in the coming weeks to see whether China will weaken the currency — perhaps to 7.5 or 8 renminbi to the dollar — to the point at which it would significantly begin to weaken the impact of American tariffs.

Also, They Ain’t Buy-in’ No More American Farm Products

Nada. Rien. Bupkus.

CNBC gives us the happy news that China’s exit from US agriculture is a devastating blow to an already struggling sector. And the Wall Street Journal discloses, China Deals ‘Body Blow’ to Struggling U.S. Farm Belt.

Strategy? We Don’t Need No Stinkin’ Strategy

A pundit observes, “What’s most remarkable about the Wall Street Journal report is the picture it paints of the president. Trump has no ace up his sleeve. He has no plan at all. Trump is flying by the seat of his pants, preoccupied not with long-term strategy but with his own immediate political prospects and media play …”

But We Do Need Some New Pants, Cause the Old Ones be Stinkin’

No wonder, then, that WALL STREET FEARS TRUMP MAY BE TOO DUMB TO END TRADE WAR BEFORE 2020.