A Path To War? China Cancels US Trade Talks As ‘Skirmish’ Escalates

Via ZeroHedge

Following a surge in Chinese, European, and much of the US equity markets this week amid hopes that the so-called ‘trade skirmish’ was less ‘war-like’ than expected, China just dropped an early Saturday morning (local time) tape bomb that is sure to resurrect ‘trade war’ talk.

https://www.zerohedge.com/sites/default/files/inline-images/china-releases-retaliation-record-to-us-tariffs-will-levy-tariffs-on-60bn-in-us-goods.jpg?itok=sn7n7zEM

After President Trump slapped a fresh round of tariffs on Chinese goods, targeting 10 percent duties on $200 billion of goods; the two camps were scheduled to meet in order to dial back tensions. As we noted earlier in the week, China had ‘downgraded’ the team with a mid-level delegation from China due to travel to the U.S. capital to pave the way for Vice Premier Liu’s visit.

https://www.zerohedge.com/sites/default/files/inline-images/im-27562.jpg?itok=CsdAqtXQ

That was what sparked hope that this was just a trade skirmish (as Jamie Dimon attempted to play down), sending stocks soaring all week.

However, that is all over now.

The Journal  just reported on Friday that, according to sources, China has rescinded the proposals to send two delegations to Washington.

Chinese officials have said such pressure tactics wouldn’t induce them to cooperate.

By declining to participate in the talks, the people said, Beijing is following up on its pledge to avoid negotiating under threat.

“Everything the U.S. does hasn’t given any impression of sincerity and goodwill,” Chinese Foreign Ministry spokesman Geng Shuang said at a press briefing Friday.

“We hope that the U.S. side will take measures to correct its mistakes.”

*  *  *

The timing of this news, after the exuberant equity week, is also noteworthy as it follows Ray Dalio’s, founder of Bridgewater, warnings that the current trade tensions mirror those of the 1930s:

“I think that the 1935-40 period is most analogous to the current period and that it is worth reflecting on what happened then when thinking about US-Chinese relations now. 

To be clear, I’m not saying that we are on a path to a shooting war, but I am saying that we have to watch what path we are on, given these cause-effect relationships that history has taught us and that are described in the template. This excerpt describes how the economic and political conditions of the late 1930s evolved into the wars that followed. “

Read more here…

We have discussed this case-effect relation before…

https://www.zerohedge.com/sites/default/files/inline-images/trade%20war_2.jpg

Get ready for some Sunday night futures fun and games…

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Thunderbird
Thunderbird

Not good. The winds of war are increasing and the people are not ready for it. From my point of view I see the tariffs as an additional tax on the people.

What is different from WW2 which was a boots on the ground war is we don’t have enough strong willed young men capable of winning such a war. And without boots on the ground we can’t win this coming war. We will go broke fighting it with aircraft, bombs and missiles.

I think China and Russia know this.

Stucky

Once we get our Space Force up and running we’ll be able to take over the world.

monger
monger

China won’t allow itself to be hemmed in, now that we have sold them enough rope…

AC
AC

Our government gets to blame our domestic social and economic problems on China.

The Chinese government gets to blame their domestic social and economic problems on us.

It’s almost like . . . .

James the Deplorable in Arkansas
James the Deplorable in Arkansas

Well, this might be a good time to break this addiction, we are like a drug user strung out on cheep drugs and now we’re hooked and the Chinese know it. Instead of getting into a shooting war we need to start making things we need in the U.S. again and that will send a message to the Chinese that we don’t need them anymore! And YES I’m as guilty as everyone else for buying Chinese goods. Even Europe is hooked too, they have exported most of their manufacturing jobs to China. One example that has hit me is Norelco. I’ve been using a Norelco triple header for 45 years and up until a few years ago they were made in Holland and performed very well. Then Norelco succumbed to economic pressures and started manufacturing their low end shavers and replacement heads in China. The Chinese shavers motors turn fewer rpm’s and the cutter heads soon dull so if I want a ‘good’ shaver I will have to buy a upper end one that is still made in Holland for now. Oh! I forgot to mention that Norelco still charged the same for the Chinese made cutter heads as they did for the ones made in Holland.

On an even more serious note I was reading an article in AmacAdvantage magazine, Fall 2018 edition, entitled “A Hard Pill to Swallow” page 28. It explains how we American drug makers have come to rely on cheep Chinese supplied ingedants for our drugs and how substandard those are. A very good read and worth your time. I’m going to cancel my ARRP membership because they support the LEFT and are using my dues to work against me. On top of that they try to shame me into ‘giving’ a suggested contribution each year which I ignore. I’m tired of their warm fuzzy, feel good, Readers Digest type magazine and propaganda for the LEFT. Ok, rant over.

I’m in with TRUMP on this and he can use the money collected to help ease any economic pain to working folks and if any is left over it can be applied to paying down that enormous debt we have.

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