DOW down 590 points this morning (The world economy is not a zero sum game)

[Johnny2X2X]

Last edited Wed Oct 2, 2019, 12:53 PM - Edit history (3)

As we watch the recession start to be more certain and near. An important point that is rarely discussed on TV is that the US does better if the Chinese economy is booming. We want other countries to have good economies because it benefits our economy. This is not a zero sum game. Trump speaks about how China's economy is doing very poorly (It's actually growing at 2-3 times the rates ours is still), because he's pushing zero sum game theory.

I want to see the Chinese economy get back to 10% annual growth the US economy will benefit from that tremendously. Global trade is a good thing, Republicans used to believe that too. We want our trade partners' economies to thrive.

[calguy]

1. ISM numbers yesterday were the lowest in 10 years

market has been selling ever since.

[Johnny2X2X]

3. The ISM trend is clear

It's been falling steady for several months and entered negative territory the last 2 months. US manufacturing is likely entering a recession this year.

[Hoyt]

2. A couple or our candidates have yet to accept that lesson.

[malaise]

4. −427.73 n/t

[Johnny2X2X]

5. Trade Wars are easy to win

Trump will get desperate and sign the worst trade deal anyone has ever imagined with China. He absolutely cannot afford to not have a deal going into the election. China knows this.

It will be a comically bad deal with a token victory for Trump that he and his mouth pieces on FOX will claim is a massive win, "I know we gave up a lot Sean, but man, getting the Chinese fireworks tariffs lowered from 20% to 19.999% is a massive win, we export hundreds of dollars of fireworks to China every year Sean, this massive victory means that The US's lone fireworks Exporter to China, Steve's Snakes, Sparklers, and Smoke Bombs, intends to buy foot long subs instead of 6 inch for it's entire 2 person staff a week from next Thursday. So the multiplier effect will be huge for Subway as well. Sure, we made $13 Trillion in concessions, but MAGA!"

[malaise]

6. Apparently not