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Russia, China Prepare To Dump Dollar, Agree To Bilateral Trade In National Currencies

Public Policy

Just one month after conducting joint military exercises, Russia and China are set to sign an agreement which would boost the use of their national currencies in bilateral and international trade in an attempt to mmove away from the current dollar-denominated financial system, according to Russian state-owned news outlet TASS.

It is planned that Russia and China will be developing bilateral payments in national currencies, encourage and expand the use of national currencies, particularly through promotion of their use when signing international trade contracts. According to the draft agreement, the sides will also assume required measures to lift barriers for payments in national currencies. –TASS

The Kremlin released a draft decree on Wednesday outlining “settlements and payments for goods, service and direct investments between economic entities of the Russian Federation and the People’s Republic of China are made in accordance with the international practice and the legislation of the sides’ states with the use of foreign currency, the Russian currency (rubles) and the Chinese currency (yuan).”

According to the draft, Moscow and Beijing will cooperate to develop a national payments system, along with cross-border payments in national and other currencies.

“The sides deepen the cooperation in the field of national payment card systems and within the framework of the Russian and Chinese legislation provide support to commercial banks in their independent decision-making on joining the payment system in the state of the other side,” reads the document.

Last November, Russian Prime Minister Dmitry Medvedev said that discussions were under way to allow the use of China’s UnionPay credit card in Russia, and Russia’s Mir card in China.

Russian Prime Minister Dmitry Medvedev (left) and Chinese Premier Li Keqiang in Beijing’s Great Hall of the People in November. Photo: EPA

No one currency should dominate the market, because this makes all of us dependent on the economic situation in the country that issues this reserve currency, even when we are talking about a strong economy such as the United States,” Medvedev said last year.

“I want to say something that may raise a few eyebrows, but I think some of these [US] sanctions are good or useful because they forced us to do what we should have done 10 years ago,” he added.

Beijing and the Kremlin have grown considerably close in recent years

On Wednesday, Chinese President Xi Jinping touted a new level of relations with Russia during his three-day visit. “Step by step, we’ve been able to bring our relations to the highest level in history,” said Xi.

Russian President Vladimir Putin chimed in, adding as he kicked off the meeting that ties between the two countries are “at an unprecedented level.

“We confirmed that the positions of Russia and China on key world problems are close, or as the diplomats say, coincide,” said Putin after the first round of discussions with Xi – who he called a “dear friend.”

Xi, who will address a flagship investment forum Friday in the Russian leader’s hometown of St. Petersburg, will sign about 30 documents with Putin after the talks focused on trade, investment and energy. Bilateral trade increased last year by about a quarter to a record $108 billion. The countries’ first natural gas pipeline is due to open later this year and China is investing in Russia’s Yamal Arctic LNG project. –Bloomberg

Xi brought two Chinese pandas to donate to the Moscow Zoo. Later, the Chinese leader will attend the opening of a Chinese car plant, before receiving an honorary doctorate from Putin’s alma mater in St. Petersburg on Thursday.

zerohedge



36 Comments on "Russia, China Prepare To Dump Dollar, Agree To Bilateral Trade In National Currencies"

  1. Shortend on Wed, 5th Jun 2019 7:05 pm 

    When the Chinese take over Siberia and the Russian East with a multiple of wetbacks, than I’ll pay attention….
    Read this story a year or two ago…so what

  2. Davy on Thu, 6th Jun 2019 4:30 am 

    Nothing new, China and Russia have been engaging in bilateral trade for some time now. They have been using their currencies also. This is just more anti-dollar shit. The dollar and the existing global world order is in deep flux so expect a dollar decline but no rout. We seem to be heading into a multipolar economic/military world with dominant regions decoupling in managed trade and defense pacts. The Chinese currency is unreliable in regards to market forces. It is pegged and controlled so until that changes it is not going to be a global FX leader. China will make big advances in bilateral deal though so expect increases across the board in this area. Russia and China trade is not yet very significant in regards to other leaders like North America with Canada and Mexico or the EU. Russia’s economy is not big enough to achieve the kind of economic power block many envision with the China. Russia has impressive financial conditions with low debt but their economy is not big enough to allow it to become a global economic leader. Russia will likely continue to be a gateway between Eurasia with China and the EU. In my opinion Russia is best positioned of all powers for the end of globalism as we know it. They are significantly self-sufficient on many levels and independent in economic and military policy. This is allowing Russia to navigate better than any other of the powers.

  3. JuanP on Thu, 6th Jun 2019 4:36 am 

    Oops, sorry everyone, and for forgetting the link. I just don’t know what’s come over me lately.

    https://www.zerohedge.com/news/2019-06-05/russia-china-enter-national-currency-agreement-putin-touts-uprecedented

  4. JuanP on Thu, 6th Jun 2019 4:41 am 

    For anyone that cares, I’m tucking myself in for the night now after binging on cocaine and rum. All of my whining and bickering on this obscure anti-American website tuckers an old fart like me out real bad. I’ll be back around noon with more shit and abuse. dumbasses

  5. Davy on Thu, 6th Jun 2019 4:42 am 

    “Wall Street & The New Cold War”
    https://tinyurl.com/y2kg2jvf daily reckoning

    “China will lose the trade war. The reasons are obvious. Foreign trade is a much larger percentage of Chinese GDP than it is for the U.S., so a trade war was always bound to have more impact on China than the U.S. And if China tries to match the U.S. in tariffs dollar for dollar, they run out of headroom at $150 billion while the U.S. can keep going up to $500 billion and inflict far more pain on China. Other forms of Chinese retaliation are mostly nonstarters. They cannot dump U.S. Treasuries without hurting their own reserve position and risking an account freeze by the U.S. China cannot turn up the pressure by stealing intellectual property because they’re already doing that to the greatest extent possible. China’s latest threat is to ban exports of “rare earths” to the U.S. and its allies…So rare earths are one weapon China possesses. But over time, Western powers can replace rare earths purchased from China. There could be major manufacturing disruption in the meantime, it’s true. But it would not be the end of the world. The U.S. will win the trade war and either China will open its markets and buy more U.S. goods or the Chinese economy will slow significantly.”

    “The trade war is part of a much larger struggle between China and the U.S. for hegemony in Asia and the Western Pacific. They are locked in a new cold war being fought on many fronts. These include trade; technology; rights of passage in the Taiwan Strait and the South China Sea; and alliances in South Asia, where China’s Belt and Road Initiative is promising billions of dollars for infrastructure development. The U.S. is responding with arms deals and bilateral trade deals to counter Chinese influence. Even if a modest trade deal is worked out with China this summer, it will not put an end to the larger struggle now underway. What are the implications? If the Chinese view the trade war as just one step in a protracted cold war, which I believe they do, then we’re in for a long period of contracting growth that will not be confined to China but will affect the entire world. That seems the most likely outcome for now. Get set for slower growth and perhaps stagflation. It could be like the late 1970s all over again. Slowly, Wall Street is taking the trade wars seriously. But it is still missing its larger implications of a new cold war. This new cold war could last for decades and it will affect the entire global economy. Let’s just hope it doesn’t turn into a shooting war.”

  6. JuanP on Thu, 6th Jun 2019 4:44 am 

    Oops, sorry everyone, and for forgetting the link. I just don’t know what’s come over me lately.

    https://www.zerohedge.com/news/2019-06-05/wall-street-new-cold-war

  7. More Davy Identity Theft on Thu, 6th Jun 2019 7:13 am 

    JuanP on Thu, 6th Jun 2019 4:36 am

    JuanP on Thu, 6th Jun 2019 4:41 am

    JuanP on Thu, 6th Jun 2019 4:44 am

  8. Robert Inget on Thu, 6th Jun 2019 2:26 pm 

    Lose the battle, win the war(s).

    Trade wars are not working for Trump.
    (not so fast with a cheer)
    The Democratic Congress now closing in on Trump and family. He could try a ‘Hail Mary’
    and green light Israel to start WW/3.

    Just threatening China with an additional 300 Billion in higher tariffs will only twist a knife already imbedded in both our economies throats.

    Trump went over his skis with his Mexican gambit.
    Several more Republicans are ready to impeach.

    Republicans can take so much BS, even treasonous acts by Our Dear Leader. But kicking
    AG and Autos in the nuts, a step too far.

    Trump has outlived his ‘useful idiot’ status.
    It’s time to give Trump ‘early retirement’ and save what remains of the GOP>

  9. Duncan Idaho on Thu, 6th Jun 2019 9:02 pm 

    The Fat Boy is not helping.

  10. Antius on Thu, 6th Jun 2019 9:53 pm 

    The trade war makes perfect sense in a post peak oil world, in which the total prosperity of the world is shrinking. Its purpose is to limit Chinese geopolitical influence by constraining their economic growth. People assuming that Trump is a fat idiot are generally clueless as to how completely the rules of the game have changed.

    Unfortunately (or maybe not) America faces a demographic time bomb that is completely inescapable at this point. Any geopolitical games only buy time at this point.

  11. Theedrich on Fri, 7th Jun 2019 12:18 am 

    So. Another D(eath)-Day celebrating U.S. crimes.  The masses watching the Yid-controlled hypnosis box will be programmed to believe America is “great” because it threw over 9,300 gullible young men to their horrible deaths on that day in 1945 in order to kill their German relatives.  After all, “we” (i.e., you, Whitey) had to “save” Judeo-Christian civilization (especially the Judeo part).

    Never mind that President F.D. Roosevelt had ensnared the Japs into attacking Pearl Harbor so that he could generate the necessary popular feeling to enter WW II through the back door.  (On this, read Robert Stinnett’s Day Of Deceit:  The Truth About FDR and Pearl Harbor, for a true account, based on now-released records, of how FDR orchestrated the attack.)  Also, pay no attention to the fact that it was not Private Ryan and his pals on Omaha Beach, but the Soviet Union under Stalin, that was the true cause of the Wehrmacht’s losses and the Reich’s defeat, at a cost of 27.5 million dead Russians.  (See Stephen F. Cohen’s War with Russia:  From Putin & Ukraine to Trump & Russiagate for more on this.)  And above all, please ignore James Bacques’
    Other Losses:  An Investigation into the Mass Deaths of German Prisoners at the Hands of the French and Americans after World War II
    , 3rd Edition, and his Crimes and Mercies: The Fate of German Civilians Under Allied Occupation, 1944-1950, Revised Edition.)

    To avoid the icing on the cake, one should never read To Hell and Back:  The Last Train from Hiroshima, which describes the niceties of the first A-bombs dropped on Hiroshima and Nagasaki.  According to American propaganda, that bombing was done to avoid having to invade Japan and suffer American casualties.  The real reason, in my view, was to show Joseph Stalin & Co. that we had more terrifying weapons than “Uncle Joe” had, and that we were not to be tampered with by him and his legions.

    Fast forward 75 years.  The U.S., having destroyed Europe in two world wars, has turned homo sapiens into a species of cancer for the earth.  Henceforth there is no turning back.  Russia and China (plus England, France, India, Pakistan, Israel, North Korea, and maybe others) have learned the nuclear and ballistic tricks of defending against Uncle Savage.  America is now stalemated;  having turned the Middle East into a butcher’s shop, it is losing its 17-year-long war in Afghanistan, after which the Mohammedans will be sure of earning their 72 celestial virgins apiece if they can just cross the Rio Grande and bring their jihad to the Great Satan.

    From here on out, it’s just what the Democrat Party of Traitors wants:  the decline of the White race and the remaining mudpie’s downspiral into doom.

  12. makati1 on Fri, 7th Jun 2019 1:52 am 

    So many more proofs that the US is collapsing into the 3rd world today that I am not even going to post them. Trump is building a wall of isolation around the US one tweet/tariff/sanction at a time. My projection says he will be reelected so he can finish the US take-down for the global elites. The is no Dumbocrats that can stop infighting long enough to be a real threat.

    One article today did state that Trump (maybe) has finally realized that attacking Iran would take down the world economy into a deep depression and end the Amerikan Empire. We shall see. Meanwhile, keep prepping!

  13. makati1 on Fri, 7th Jun 2019 1:55 am 

    Correction: “There are no Dumbocrats that can stop infighting long enough to be a real threat.” The last count was 22 psychotics in line for the job. What a hilarious spectacle for the rest of the world to laugh at. Amerika on display! lol

  14. Davy on Fri, 7th Jun 2019 5:48 am 

    “Could China Could Do A “Pearl Harbor” To Survive The “New Cold War”?
    https://tinyurl.com/y6gryvae sino insider

    “A confluence of factors is causing unprecedented crisis for the Chinese Communist Party: Non-stop escalation of the “you die, I live” factional struggle between the Xi leadership and the Jiang faction; A rapidly deteriorating economy; A food crisis brought about by corruption, disease (swine fever, bird flu, etc.), and pests (fall armyworm); Increasing social unrest across China. The CCP’s problems have been compounded by the Sino-U.S. trade war and America’s toughening stance on the Chinese regime: In May, United States President Donald Trump announced plans to add tariffs to all Chinese goods (increase tariff rates on $200 billion worth of Chinese products in May; add 25 percent tariffs on an additional $300 billion of Chinese exports in June); The U.S. Commerce Department announced a ban on Huawei, a move which essentially dooms the state-backed Chinese telecommunications maker; The U.S. appears to be moving against other Chinese technology companies, particularly those involved in human rights persecution on the mainland; The Trump administration is playing the human rights and Taiwan card; The U.S. is stepping up military activity in the South China Sea on its own and with allies; The U.S. is strengthening alliances and partnerships in the Indo-Pacific to counter the Chinese regime. Based on our research into the CCP, we believe that the Party and the regime cannot long withstand the perfect storm of political turmoil, economic crisis, food shortages, social unrest, and intense U.S. pressure. With its survival at stake, the CCP will not resign itself to fate and will instead do whatever it can, by all means fair and foul, to stay alive.”

    “The CCP could seek to disrupt U.S. financial markets. The CCP could seek to influence and interfere in U.S. politics and society. The CCP could engineer foreign crises to divert America’s attention away from China. The CCP could avoid U.S. containment by fracturing alliances and partnerships.”

    “A wounded animal is most dangerous. Our list of possible strategies and tactics which the CCP could use against the U.S. is not exhaustive, and we do not rule out the possibility of the CCP deploying even more nefarious and unthinkable countermeasures. The toughening U.S. stance towards the PRC is a net positive for America and the world. However, America’s strong measures would inspire strong responses from the CCP and sharply raise global political, economic, and military risks. While we believe that the U.S. is currently on track to win the “new cold war,” victory could come at a steep cost if it only uses the current strategies. Based on our research, we believe that the PRC’s backtracking in trade talks is directly related to the escalation of the CCP factional struggle. The current state of the factional struggle has opened a critical window of opportunity for the U.S. to exploit and drastically reduce the length of time needed to win the “new cold war,” as well as the overall costs. To take advantage of this window of opportunity, the Trump administration must be able to differentiate between the reformers and Maoist hardliners in the regime and apply strategic pressure on the latter group.”

  15. Davy on Fri, 7th Jun 2019 6:17 am 

    Why is US dollar access so restrained in China as trade war rages on?
    https://tinyurl.com/yxwhp9e8 scmp

    “But Beijing’s decision to step up capital controls, a growing number of analysts have said, underscores the perilous state of the economy, which was also reflected by the recent reluctance of foreign financial institutions to lend to Chinese banks and the nervous behaviour of Chinese citizens.”

    “[China] is letting very little money to go out. Every time when they try to let [money] go out, the markets get too volatile for [China] to stand and they need to stop it immediately,” said Kevin Lai, chief economist for Asia, excluding Japan, at Daiwa Capital Markets. The domestic demand for dollars, coupled with the growing wariness in the global capital markets to provide US dollar funding to Chinese banks, seen as increasingly risky, are raising the possibly of a systemic “dollar shortage”.

    “Right now, China is viewed as a tremendous and growing risk in terms of economic downside and financial risks,” said Jeffrey Snider, head of research at Alhambra Investments. “The reason for any reluctance to lend US dollars to local Chinese banks freely [especially through Japanese banks] has to do with risk perceptions. Foreign buying of yuan assets, including bonds and equities, has also declined recently, reflecting worries over yuan depreciation and the difficulty for foreigners to justify putting more money into China’s markets and committing to the country, Smith said. The trade war makes matters exponentially worse if China can’t earn US dollars from exports to the US, said analysts, which would rapidly push the current account into deficit. Domestic demand for US dollars is rising sharply because of exporters’ reluctance to repatriate dollars earned abroad amid fears over yuan depreciation and escalating trade tensions.”

  16. Davy on Fri, 7th Jun 2019 6:38 am 

    “Currency War Next? Yuan Tumbles After PBOC Governor Says “Tremendous” Room To Ease Monetary Policy”
    https://tinyurl.com/y62m8slz zero hedge

    “chief of China’s central bank said Beijing has “tremendous” room to adjust monetary policy if the trade war with the U.S. deepens, and hinted there’s no line in the sand for the currency, meaning the key “psychological” level of 7 does not exist in times of trade war.”

    “That was all FX traders needed to hear to start selling the yuan: “this is a hint that China may allow the yuan to break 7 if the trade war escalates, and Yi is seeking to prepare and guide the market,” said Gao Qi, a currency strategist at Scotiabank in Singapore. “It’s possible that the yuan may breach that level if the trade talks collapse.”

    “The calculus the PBOC and other policymakers can employ is redolent of what the Russian government did earlier this decade amid the oil crash and Western sanctions — let the ruble slide to help exports, and also stretch forex reserves that come from dollar-priced commodities and energy sales. China’s forex pile in the form of U.S. Treasuries and other reserves play a similar role for Beijing, and that means a chance for weaker local currency in order to stretch that stimulus. And so with China one step closer to allowing the yuan to slide below 7, one can be sure it won’t go unnoticed by the White House, BBG’s Richard Jones writes. And, “as much as the U.S. administration has been waging war by using tariffs, don’t be surprised if the White House starts trying to jawbone the USD lower too.”

  17. Davy on Fri, 7th Jun 2019 8:31 am 

    You know me guys, I love to start my day with a fair and balanced serving of zero-hedge spam none of you would ever pay any attention to even if I was the last source of functioning uS propaganda left on Earth. Fortified with my signature tinyurls, to hide the source. Why do I keep doing this? I’m not the sharpest knife the drawer, but I like to be consistent. And clever. Because most of you are pretty dumb to be honest, and to my way of thinking, hiding my ZH trash might actually fool one of you into clicking my links one of these days.

  18. joe on Fri, 7th Jun 2019 9:51 am 

    Essentially you don’t have a bottom to your currency when your workers are slaves and prisoners. Building ‘model cities’ is a tactic designed to fool people into thinking reform is happening. SAUDI ARABIA did it with allowing driving and wwe. China does it by allowing some people in the special econonic zones to prosper. Ask Tibettan people or Chinese muslims how great the communists are.

  19. JuanP on Fri, 7th Jun 2019 10:02 am 

    Look at the shit I post bellow. Davy has handed me my ass in defeat. I am a fucking pussy unable to debate any of the topics he presents.

    “Davy on Fri, 7th Jun 2019 8:31 am
    You know me guys, I love to start my day with a fair and balanced serving of zero-hedge spam none of you would ever pay any attention to even if I was the last source of functioning uS propaganda left on Earth. Fortified with my signature tinyurls, to hide the source. Why do I keep doing this? I’m not the sharpest knife the drawer, but I like to be consistent. And clever. Because most of you are pretty dumb to be honest, and to my way of thinking, hiding my ZH trash might actually fool one of you into clicking my links one of these days.”

  20. Anonymouse on Fri, 7th Jun 2019 10:03 am 

    You got that right Juan. We are failures but we can’t stop our obsessions so now we are looking like idiots

  21. makati1 on Fri, 7th Jun 2019 10:05 am 

    I hear you guys I am wearing out too. Davy is just miles ahead of us intellectually.

  22. More Davy Identity Theft Projections and Delusions on Fri, 7th Jun 2019 10:47 am 

    JuanP on Fri, 7th Jun 2019 10:02 am

    Anonymouse on Fri, 7th Jun 2019 10:03 am

    makati1 on Fri, 7th Jun 2019 10:05 am

  23. Cloggie on Fri, 7th Jun 2019 2:58 pm 

    I love bacon. Do you have any bacon you can send me Davy?

  24. More Davy Identity Theft on Fri, 7th Jun 2019 4:59 pm 

    Cloggie on Fri, 7th Jun 2019 2:58 pm

  25. verax7 on Sat, 8th Jun 2019 1:26 am 

    I didn’t know the CIA posts on peakoil…. does Davy work for Pompeo?

  26. Davy on Sat, 8th Jun 2019 2:25 am 

    Pompeo couldn’t even afford the toilet paper on my Learjet, you stupid dumbfuck.

  27. Cloggie on Sat, 8th Jun 2019 4:29 am 

    “Ask Tibettan people or Chinese muslims how great the communists are.”

    You basically seem to imply joe, that the Han-Chinese in contrast are relatively happy with their fake communism, more correctly described as capitalist authoritarian nationalism. And that would be a correct assessment. China is here to stay, mostly because it is already around for 2500 years or more.

    The awakening of the Red Dragon is the single most defining geopolitical event of the 21st century. The other two defining events of this century will be PBM (pure in reaction to the rise of China) and the dismemberment of empire, for ethnic-demographic reasons (#cw2).

    Present day Chinese are proud as hell of their achievements, understandably so. They have a clear aim: achieving western levels of affluence and being recognized as a major power, although there are no signs that they aim for global dominance as the US did since 1933:

    https://documents1940.wordpress.com/2017/09/25/time-life-the-american-century/

    They have a very different mindset than ours: extremely risk-avoiding in (geo-)politics, aimed at consensus and conflict-avoidance (“yes, master, certainly master”), highly collectivist, strong work-ethic, capitalist mind set (they like to gamble a little).

    Despite the Chinese being politically introvert, much in contrast to most brazen, extrovert (((people))) on the planet, who run the US today, it will take all (white) hands on deck to contain this new juggernaut.

    The good news is we still have some time to “refactor” the white world first in preparation:

    – Handle Brexit first, to pave the way for Russia and PBM; the Gaullist vision
    – Patiently wait for the end-of-life of empire + US, now that the Dems and Reps are morphing into war parties and white America prepares to secede from Washington. Keep signaling Euro-Americans that they can expect help from Europe once tshtf
    – Weaponize insurgents and provide freelancers (like Russia did to Donbass)
    – In the end flatten Washington and deal with the mobster-crew with a #110, so hard that #111 will be at least 500 years from now
    – Encourage England to take back white parts of Canada (#EmpireLite) and act as the semi-independent junior member of Eurosphere, where PBM-Heartland is the senior.

    [part 1]

  28. Cloggie on Sat, 8th Jun 2019 4:33 am 

    Multi-polar world is next, with Eurosphere and Sinosphere (China + Australia) act as the parents of the planet, with the rest as the children (“now don’t play with these nuclear fire-crackers, Mohamed, otherwise you’ll get your juicy brown but spanked!”).

    This is a reasonable, achievable, solid, alt-right vision-program for the future.

    After that, conquering the universe is next:

    https://www.youtube.com/watch?v=GFdgxst21Ks

    (0:00-3:02)

    P.S. Spencer on the EU (he is right, in contrast to the Canadian “French-Brit” Gariepy):

    https://www.youtube.com/watch?v=u4eHQ-mcc20

    https://www.youtube.com/watch?v=FXGOWJbt2BU

    [part 2]

  29. Cloggie on Sat, 8th Jun 2019 4:55 am 

    “Despite the Chinese being politically introvert, much in contrast to most brazen, extrovert (((people))) on the planet, who run the US today…”

    https://www.youtube.com/watch?v=bradg9qlceI

    These libtards from Boston are eating out of his hand. England can have them as well, after the break.

    The East-coast, the new Fly-over Country of the future.lol

  30. JuanP on Sat, 8th Jun 2019 5:25 am 

    There is a reason why Trump is my hero:

    Trump: Deal Reached With Mexico “To Stem The Tide Of Migration”, Tariffs Suspended
    It would appear that Trump’s tariff threat worked. “I am pleased to inform you that The United States of America has reached a signed agreement with Mexico,” President Trump tweeted Friday. “The Tariffs scheduled to be implemented by the U.S. on Monday, against Mexico, are hereby indefinitely suspended.” Mexico has agreed to “strong measures to stem the tide of Migration through Mexico, and to our Southern Border,” Trump wrote. I am pleased to inform you that The United States of America has reached a signed agreement with Mexico. The Tariffs scheduled to be implemented by the U.S. on Monday, against Mexico, are hereby indefinitely suspended. Mexico, in turn, has agreed to take strong measures to….— Donald J. Trump (@realDonaldTrump) June 8, 2019
    ….stem the tide of Migration through Mexico, and to our Southern Border. This is being done to greatly reduce, or eliminate, Illegal Immigration coming from Mexico and into the United States. Details of the agreement will be released shortly by the State Department. Thank you!
    — Donald J. Trump (@realDonaldTrump) June 8, 2019
    Details of the deal will be released shortly by the State Department. Mexico’s foreign minister, Marcelo Ebrard, who was in the Washington for the talks, said in a tweet that the tariffs wouldn’t be imposed.
    “Thanks to everyone who has supported us by realizing the greatness of Mexico,” he said in Spanish.
    Senator Chuck Grassley, an Iowa Republican opposed to the tariffs, is pleased:
    No tariffs on Mexico. Mexico came through

    — ChuckGrassley (@ChuckGrassley) June 8, 2019
    It would seem Chuck Schumer’s claim that Trump’s tariffs were a bluff are proved wrong.

  31. JuanP on Sat, 8th Jun 2019 5:40 am 

    I knew there was a reason I hated china:
    In terms of absolute emissions, the heavy hitters are immediately obvious. Large economies such as China, the United States, and India alone account for almost half the world’s emissions. Zoom out a little further, and it’s even clearer that just a handful of countries are responsible for the majority of emissions.

    https://zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com/s3fs-public/styles/inline_image_desktop/public/inline-images/global-emissions-4.jpg?itok=AZcBP99y

    https://www.zerohedge.com/s3/files/inline-images/emissions%20by%20country.jpg?itok=gZS97708

    https://www.zerohedge.com/s3/files/inline-images/2019-06-06_16-29-38.jpg?itok=SRou9YwH

  32. JuanP on Sat, 8th Jun 2019 5:44 am 

    OOps, I posted two articles from Zero Hedge and forgot to tell you. Zero Hedge is my go to for news and dirt.

  33. Davy on Sat, 8th Jun 2019 6:23 am 

    “The Great (brick) Wall of China HOW SERIOUS IS THE CHINESE DOWNTURN?”
    https://tinyurl.com/y23bxe29 surplus energy economics

    “These considerations indicate that China simply cannot afford to agree to the most important American demands over trade, which makes a deal implausible unless Washington backs down. The view taken here is that, whilst the United States can ‘win’ a trade war with China, such a victory could be Pyrrhic at best. Based on the analysis outlined here, the Chinese economy is already in very big trouble, and America can only lose if this predicament is worsened. The paramount emphasis on volume goes along way towards explaining why China has built huge capacity, even where there are already excesses. Building residential property where there are no residents, shopping centres without retailers, unnecessary infrastructure and unneeded factory capacity may look irrational in the West, but what to Westerners may be a white elephant looks, in China, like a valuable source of employment.”

    “Overseas observers customarily ignore China’s reliance on debt, sometimes because they are simply dazzled by reported “growth”. Many people overseas marvel that China has more than doubled her GDP (+114%) since 2008, but far fewer recognize that doing this has required a near-quadrupling of debt (+284%) over the same period.”

    “What we’re seeing, then, is the first major setback to an economic model targeted on volume and supported by ultra-rapid credit expansion. Though some of us have been warning about the pace of Chinese debt expansion over an extended period, Western markets seem only to have become aware of these risks since volumetric indicators turned down, a trend whose impact has been highlighted by its consequences for a string of overseas companies which, hitherto, had been riding the expansionary wave in Chinese economic activity. Perhaps the single most disturbing feature of the Chinese predicament has been the sheer scale of the downturn across a string of product categories ranging from cars and smartphones to industrial components. What we’ve been witnessing, across a diverse and representative cross-section of activity, hasn’t been a minor reversal, still less a slowing of growth, but an alarmingly deep fall in activity. It need hardly be said that China has played an absolutely pivotal role in the world economy since 2008, not just providing growth but acting as a hugely important market for everything from manufactured goods to critical commodities, including energy, minerals and food. Additionally, Chinese overseas investment has been hugely important for overseas asset prices, most obviously in real estate.”

  34. More Davy Identity Theft and Projections on Sat, 8th Jun 2019 10:24 am 

    JuanP on Sat, 8th Jun 2019 5:25 am

    “Trump is my hero:”

    JuanP on Sat, 8th Jun 2019 5:40 am

    “I knew there was a reason I hated china”

    JuanP on Sat, 8th Jun 2019 5:44 am

    “Zero Hedge is my go to for news and dirt.”

  35. COMAC919 on Sat, 8th Jun 2019 12:00 pm 

    Davy is internet keyboard armchair warrior? If by Learjet he meant the virtual one that comes free with the latest Prepar3d flight simulator dev version at $10 / month…. (see comments above) dude doesn’t have any jets.

  36. Davy on Sat, 8th Jun 2019 12:22 pm 

    “US-China Trade War: The New Long March”
    https://tinyurl.com/yytnv2f4 guggenheim investments

    “The Chinese are buckling up for a long ride. Beijing is preparing for a protracted standoff. The leadership has concluded that the intention of U.S. negotiators is not just to resolve trade imbalances but also prevent China from moving up the value chain, a key long-term objective for the Chinese. Tariffs on the remaining $300 billion of Chinese products would hurt China, but the United States would also feel the pain…The short-term impact on China could be smaller than previously expected. Factories that sold only to the United States have developed new markets over the past year…There has been a significant shift in the way that Beijing manages nationalist sentiment inside China. Until May the government had been trying to contain hawkish views on the U.S.-China relationship, but now they are just letting it grow. (See Now China’s Got Its Own Anti-U.S. Trade War Song.) Not only does this demonstrate that Beijing does not expect any short-term solution, because the negative sentiment will make it difficult for President Xi to make concessions, it also allows China to harden its diplomatic position given popular domestic sentiment.”

    “The consequences of a protracted trade war are manifold. The economic impact includes a drag on economic growth, import price inflation which will allow U.S. domestic and other foreign policy makers to raise prices, and the knock-on effects to other trading partners as the shuffle begins to find new sources and markets for different products. Researchers at the New York Fed have determined that the new round of tariffs on Chinese products will cost the typical American household an additional $831 per year. Trade barriers between the world’s economic superpowers will slow global growth and put political pressure on all affected governments, stoking increasing nationalism and protectionism overseas while increasing inflation and reducing living standards at home.”

    “there is no indication that the Chinese will attempt to liquidate their large holdings of U.S. Treasury securities. To do so would only drive down the value of the dollar, which would run counter to Beijing’s desire for a weaker yuan. There is also no imminent change to monetary policy from the Federal Reserve as a result of trade saber-rattling, but if the financial markets begin to spiral out of control because of tariffs, then we could see a repeat of 1998, when the Fed eased as a result of the Asian financial crisis.”

    “The conclusions are obvious. Unless the current trajectory is quickly changed, the Chinese are digging in for a long fight. The cost to the United States will be high; the cost to the Chinese will be higher. The only question is who will endure and be the most innovative in this battle of wills”

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