b*********4
发帖数: 1 | 1 What Trump, Mnuchin, Kudlow, ... etc. really want from China? In my humble
opinion, they want China to buy US debts, ease monetary policy (such as cut
interest rate), and do large scale stimulus package. | b*********4
发帖数: 1 | 2 Despite hit hard by the epidemic, PBOC has NOT cut interest rate.l It only
lowered bank reserve requirements to particular sectors. PBOC emphasized
that it would NOT flood the market with money.
Why? Chinese government knows current problem is not too little base money
but velocity of money dropped significantly. Cut base interest won't help
but could only spark financial assets boom. To recover velocity of money is
to rebuild people's confidence through successfully address the epidemic.
Chinese government does come up proposals of "new infrastructure" - 5G
network, ultra high voltage, automobile charge stations (for wide adapt of
electricity cars), data centers... total 7 items as stimulus. To summarize -
borrow and spend on infrastructure of future (so will be paid back) then
print and spend to boost financial assets.
US government doesn't have 2 trillion to spend thus need foreigners to buy
these debts otherwise more money chase limited goods --- INFLATION, server
one would happen. | b*********4
发帖数: 1 | 3 If US can successful force China to ease with extra liquidity, they have to
either buy US debts directly or indirectly. Indirectly - such as accept
printed US dollar to ship manufactured goods to US and US$ received will
park on US debts as US has not as many things to sell, I mean things which
they want.
Clearly, China has scored victory rejected Trump's demands without proper
compensation.
Next, US and China will negotiate mostly under table. What will US pay to
exchange China's back of US' debt issuance, for instance technology know-
hows, etc. | b*********4
发帖数: 1 | 4 Long term solution is to rebuild US industry base; short term solution is
stop defame China and work with all nations to fight the pandemic (of course
, include buy necessary gears).
Like or not. US has failed in defaming China.
In this week's G7 foreign minister conference, Pompeo asked to put Wuhan
virus into the proposed joint communique. All 6 other nations opposed thus
ended without joint communique first time.
US' strategy is to get G7 support her position then force G20 (include China
) to adopt stimulus packages which US want.
Just a few hours ago, Trump called Xi (not Xi called Trump). Please read
Trump's Tweets and you would know Trump has caved in. No more Chinese virus
nor CCP virus but work together to fight the disease. |
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