Posted by Curt on 5 September, 2019 at 5:25 pm. 4 comments already!


Boy howdy if ever there was an article that showed the layers and ramifications of President Trump’s global trade reset, this is a good one.   The multinational media do not want American voters to understand the dynamic, because if we did people would catch-on to how the global economy was structured upon removal of U.S. wealth…

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Reuters is reporting on a significant drop in German industrial orders, and they specifically point to diminished orders from the U.K (small part) and China (big part) as the cause.  However, the analysis stops at the part where China’s lack of industrial orders is the leading contribution to retraction in the German export sector.

What the financial analysis does not approach (ie. the third rail of multinational corporate admission that must never be outlined), is the reason why Chinese orders for German industrial goods have dropped.

The problem for China, and ultimately for Germany, is that Trump’s trade reset has stopped a big amount of U.S. wealth from arriving in Beijing. Simultaneously, Beijing is countering Trump’s tariffs by devaluing their currency.  The rebound economic impact is doubled. China has: (1) less income; and (2) less value within their own currency.

Where does this dynamic show up?…. Anytime China is going to buy something.

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.

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