China's currency devaluation makes their exports cheaper; however, at the same time it makes any of their imports more expensive. As a consequence China buys less and that now exhibits in lower purchases of German stuff. See how that happens?
So yeah, the ramifications for Merkel's German economy -twice as bad as originally forecast- are based on China fighting Trump. The fact that China is bleeding cash, and has simultaneously dropped the value of their currency, means China can't buy stuff.
All of those nations who were counting on Chinese purchases are now going bananas. This is why the multinationals blame Donald Trump and to make matters even worse the U.S. economy is thriving, while they watch from the sidelines. It's a delicious dynamic.
For more than three decades global economies have grown by removing wealth from the United States. The U.S. multinationals have countered the economic arguments by claiming those global economies have purchased U.S. treasuries; but that means we trade our current wealth for future debt.
President Trump has reversed this dynamic. We are repatriating our national wealth through new trade policies, and will pay for any incurred foreign debt by expanding our own economy and controlling our own destiny.
So yeah, the ramifications for Merkel's German economy -twice as bad as originally forecast- are based on China fighting Trump. The fact that China is bleeding cash, and has simultaneously dropped the value of their currency, means China can't buy stuff.
All of those nations who were counting on Chinese purchases are now going bananas. This is why the multinationals blame Donald Trump and to make matters even worse the U.S. economy is thriving, while they watch from the sidelines. It's a delicious dynamic.
For more than three decades global economies have grown by removing wealth from the United States. The U.S. multinationals have countered the economic arguments by claiming those global economies have purchased U.S. treasuries; but that means we trade our current wealth for future debt.
President Trump has reversed this dynamic. We are repatriating our national wealth through new trade policies, and will pay for any incurred foreign debt by expanding our own economy and controlling our own destiny.