The S&P 500 is down nearly 200 points in just one week.
Trade war with China is escalating.
First, President Trump imposed an additional 10% tariffs on $300 billion worth of Chinese products from September 1.
China then devalued its currency. China also said it will suspend all US agricultural product purchases in response to President Trump’s new tariffs.
And last night, US Treasury just designated China as a currency manipulator.
No country has been named a currency manipulator since the Clinton administration slapped the label on China in 1994.
U.S. Treasury said: “As a result of this determination, Secretary Mnuchin will engage with the International Monetary Fund to eliminate the unfair competitive advantage created by China’s latest actions.”
The reality is that Chinese have been trying to game the system for a long time.
And until now, U.S. did not have a leader who would stand up to them.
This is the defining moment of our time. And the relationship between U.S. and China will set the framework for the world economy for the next 25-50 years.
This is history in real time…
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