Wednesday, June 13, 2018

The Economic Battle Between China And The U.S. Will Be The Biggest Market Event Of The Century

CNBC: US-China power struggle will probably be the biggest market event of the century, strategist says

* Over the past few months, the U.S. has imposed new tariffs on Chinese products in an attempt to reduce its trade deficit with the country.
* China has prepared retaliatory measures but both countries have been holding diplomatic talks to try to reach a compromise over their trade links.

The battle between China and the United States to be the world's most powerful nation could be the century's defining moment for financial markets, according to one strategist.

Market players on Tuesday were digesting news of an accord between North Korea and the United States, which aims to work toward complete denuclearization and a lasting "peace regime" on the Korean Peninsula. The historic agreement is being scrutinized by analysts and traders to understand what this moment means to the world and financial markets. But according to Jane Foley, the head of foreign exchange strategy at Rabobank, the wider picture should include China's relationship with the U.S.

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WNU Editor: U.S. and China will not be the only big market event of the century. The emerging markets in Africa, the Indian subcontinent, and South America cannot be ignored. From my vantage point, we are heading into a multi-market conflict, and countries/regions will be taking sides.


Michael Feldhake said...

Not enough information yet to make predictions, only conjecture. Economies are always in play. However I think the South China Sea issue IS the defining issue of our time right now. Far too many dollars travel through this region.

Anonymous said...

Yeah well I've been hearing the China rise myth for decades.

1) they managed to alienate almost all of their neighbours. Infants on the diplomatic stage is what describes it best, who try to bully everyone. .even when compared to a Trump-run America, as people so readily like to point out, China is embarrassing itself left and right and is now encircled
2) The Chinese are becoming more authoritarian by the day. No more elections, a social point system, crackdown and torture of party critics. ..this will result in brain drain and money leaving China - as we've seen so many times before

3) china's gdp turns out to not catch up to the US this decade as was foretold for nearly 30 years. Instead turns out China overhypes their gdp by up to 30% (see satellite study a few months back) AND even if you use official government data, the US is now nearly twice as big.. nearly 10 trillion ahead! !'s unbelievable American power..with just 350mn people. China needs 4x as many people and still cannot catch up by a long shot
4) China is still getting away with playing unfairly. Stealing trillions. The US will want some of that back.

If this decade has shown (which was supposed to be the rise of the dragon)..we saw China failing, embarrassing themselves, lying about gdp growth, making enemies left and right and showing they cannot be trusted (eg violation of Hong Kong status as agreed with UK)...

Bye bye myth of China. And this is at the height of Chinese national pride. ...even then 1.5bn barely manage to compete with the US''s 350mn people. And the US is almost done with its aging issues. That's yet to come for China. And what even will happen next decade when China falls back to normal growth. Mass unemployment. Revolts. Xi is not going to be president for life. If you think it was a power move, you're misreading the situation. He'll be lucky to still serve 10 years from now

Anonymous said...

Anon readily dismisses China, but I have friends who work in China and from what they tell me, China's airports, trains, roads, infrastructure shames much in the West, esp. the US.