Fans of Lewis Carroll should know the whimsical poem from Alice in Wonderland that comes across as complete NONSENSE. The collection of tweets from the White House is the modern day version of the Jabberwocky. On Friday Trump tweeted about how well the talks were going with Chinese and that they were close to completion with a positive outcome. So between that and a strong jobs number, the U.S. equity markets had much to celebrate
Posts Tagged ‘WTO’
Notes From Underground: Lighthizer, Always At the Ramparts Of Trade Battles
April 8, 2019As the second quarter begins, the financial markets seem fixated on China/U.S. trade frictions, or lack thereof. This narrative is old and stale. For those new to the realm of international relations, be aware that China will slow-walk these negotiations. There will be many attempts to “agree to disagree.” For example, in Monday morning’s SOUTH CHINA MORNING POST, there was an article titled, “China Refuses to Give Up ‘Developing Country’ Status At WTO Despite US Demands,” about China’s “privileged position” at the World Trade Organization. In the simplest terms, the WTO allows for countries to self-define as developing country status. This brings certain rights that allow for longer transition periods before they have to be in full compliance with WTO rules and regulations. This is described as “Special and Differential Treatment.”
Notes From Underground: Fed Feeds Europe More Dollars; China Offers to Buy European Debt (Yet Again)
December 22, 2010The FEDERAL RESERVE announced it was extending the DOLLAR SWAP loans it has in place with several central banks. Earlier in the week, the market reported a shortage of DOLLARS in Europe as people were exchanging EUROS for DOLLARS and the commercial banks were caught short sending EUROBOR rates higher. BEN BERNANKE is nervous that a debt crisis in EUROPEAN banks will cause U.S. banks with exposure to the PIIGS’ sovereign debt major problems in the overnight lending facilities.
Notes From Underground: U.S. and Japan look to new sources of Rare Earth as they” Get Ready ” to China’s I am “Losing You”
November 1, 2010The weekend news brought further acrimony between China and the developed nations as the Chinese have threatened to curtail the export of several import elements that are needed to manufacture high-tech products. The Chinese export 97 percent of the rare earth elements that go into military and electronic equipment. It will take some time for the world to find alternative locals and substitutes so China is able to flex its muscles and show how important it is to the developed world.
Notes From Underground: Tomorrow the FOMC–extended period expected to stay
June 22, 2010The FOMC statement will be released Wednesday and it will reinforce the discussion about the uncertainty of deflation/inflation. Bernanke and his fellow output gappers will stay the course as long as unemployment stays too high to comfort the Washington politicos. As we head into the Toronto G-7 and G-20 photo ops this weekend, the FED will not wish to create any type of uncertainty into what will prove to be a raucous weekend.
Notes From Underground: The Long March toward Yuan appreciation–Schumer, Levin, Graham vs. the G-20
June 17, 2010As we head into next weekends G-20 meeting, the swords of reprisal are being sharpened by the wagging tongues of political expediency. Sander Levin, chairman of the House Ways and Means Committee, is threatening that Congress will move to punish the Chinese for their recalcitrant behavior toward the rebalancing of the global financial and economic system if the Obama administration fails to get China to revalue the YUAN.