U.S. President Donald Trump meets with China's President Xi Jinping at the start of their bilateral meeting at the G20 leaders summit in Osaka, Japan, June 29, 2019. REUTERS/Kevin Lamarque/File Photo/File Photo
Reuters: Trump 'not ready' for China trade deal, dismisses recession fears
WASHINGTON (Reuters) - U.S. President Donald Trump and top White House officials dismissed concerns that economic growth may be faltering, saying on Sunday they saw little risk of recession despite a volatile week on global bond markets, and insisting their trade war with China was doing no damage to the United States.
“We’re doing tremendously well, our consumers are rich, I gave a tremendous tax cut, and they’re loaded up with money,” Trump said on Sunday.
But he was less optimistic than his aides on striking a trade deal with China, saying that while he believed China was ready to come to an agreement, “I’m not ready to make a deal yet.”
He hinted that the White House would like to see Beijing resolve ongoing protests in Hong Kong first.
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WU Editor: Both sides are not ready for a trade deal because both sides believe it is in their interest to prolong this dispute. As for recession fears. The media narrative for the past week was that a recession may come in the next year or two. I do not share that point of view. China's real GDP growth is now near zero (contrary to Beijing's clam that it is over 6%), and the EU economies are experiencing negative growth. But the U.S. economy is still growing and unemployment is still at near record low numbers. U.S. personal debt levels are still high, but like I said, everyone is still working.
4 comments:
Private sector in the US is doing excellent and they have a lot of savings. Don't confuse with public sector! Apple alone has hundreds of billions in savings. Compare this to the largest in China who have debt, debt, debt.
Chinese leadership is completely lying to themselves if they think they will survive this. I've seen reports of first unrests on the mainland now already! I've predicted DJTs presidency already in 2015, I've predicted the FBI and Mueller outcomes a year ahead (just ask the parrot) and I'll call China now. They will collapse in front of our eyes with massive unrests coming next year as soon as the housing bubble hits .they have no more money left to fend it off, friends of mine are now paid with IOUs in Shanghai. 0 chances of getting out of it either as capital leaves this sinking ship
Visited the residence of a former low or mid level diplomat who subsequently moved into the private sector to work in economic research on Chinese companies. His job was simple in concept. It was "Are the Chinese companies worth investing in or are they cooking the books?"
So we visit this guy. Five minutes later there is a knock on the door and the Chinese police are there with questions.
All it was were two former classmates visiting after not seeing each other for 2 decades. That is it. The tumult of folly and misrule cause such hard times that classmates and coworkers of that generation are very close to each other.
The visit had nothing to do with collecting economic data to make investment decisions. None. But the Chinese government is very sensitive that people might find out that it is a perhaps a little bit of a paper tiger?
I do not want to see China go to s..t. But neither do I want to deal with chauvinistic one-sided Chinese deal makers.
China's economy is beginning to resemble the Haight Ashbury mansions in San Francisco without the manure on the sidewalks. Yet. Fancy facades in front and economy class along the sides and rear.
The recent required declarations of allegiance to Xi could turn out to be as empty as some of the vacant ghost cities. Hong Kong's resistance to the dictator may be seen in retrospect as the beginning of his fall.
I'm popping corn for this movie as I type.
Damn that evil Trump.
Last time I went to China for business (and liked it) was 2007. Now, I have nightmares just going there.. it's horrible
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