So yesterday I explained to you that while
Donald Trump was complaining that the Federal Reserve didn’t give him the big federal funds rate cut that he wanted. He was deliberately ignoring that from August
1st on his additional tariffs on China have really been hurting the stock market. And yesterday when we were producing the show,
I said, as of right now, the stock market, the Dow is down nearly 600 points and it ended
down more than 700 points. The worst day in 2019 so far. And the reason is Donald Trump’s trade war,
which includes now China devaluing its currency, which I’ll talk about momentarily, and it
is getting worse and worse. This is going to be terrible for Americans
of all kinds. There are all sorts of moralistic arguments
we can make about China and their behavior, but in the end, this is bad for Americans. Now the Dow is down nearly 6% and just this
month, it’s August 6th [inaudible] through August 5th which we had two weekend trading
days or rather two weekend days that we’re not trading days down nearly 6% the Dow back
down roughly to where it was in January of 2018 which is 19 months ago, s and p 500 down
about 3% yesterday, Nasdaq down even more, 3.5% so this is bad and it’s bad even for
people who don’t necessarily own lots of shares of stock as I’ve described before. And you know what? China is going to keep messing with Donald
Trump now that Donald Trump has declared a trade war war on China, a type of war. Nevertheless, China has now allowed the yacht
yuan their currency to weaken beyond seven yon per dollar for the first time in 10 years. And Donald Trump is attacking them on Twitter
saying quote, China drop the price of their currency to an almost a historic low. It’s called currency manipulation. Are you listening? The Federal Reserve, this is a major violation
which will greatly weaken China over time. Really get the feeling that Trump has China
on the ropes. Right? Like any second, China’s going to relent and
come to the table and give Donald Trump everything he wants. Yeah, obviously not. And it’s important to understand this currency
manipulation allegation, which is not untrue. By the way. China does manipulate the value of their currency
for trade benefit purposes by reducing the value of their currency. It makes it cheaper for other countries to
buy stuff from China to import to their countries. If you get more yuan per dollar, you can now
get more Chinese stuff per dollar effectively making it cheaper. That’s true. And it’s not going to change the way that
Donald Trump has been handling Chinese trade policy. It’s having the predicted effect, which is
that it’s crashing out our stock markets. And in more bad news for the United States,
China has asked state owned companies to just stop buying agricultural imports from the
United States altogether. So if you thought that American farmers had
been getting crushed for the last nine months and they have been, as I’ve told you about,
that has been nothing compared to what you are about to see upcoming. This isn’t sustainable, but more importantly,
Trump doesn’t even understand how this stuff works. Trump’s policy to the extent you can call
it policy, is driven by misunderstandings about the most fundamental elements of trade
and economics and currency combined with this attitude that he has of everything being a
win, lose negotiation and who’s the strongest and who’s going to come out on top. Trump’s so-called business experience, which
was the reason that many people voted for the guy to begin with. His business experience we were told would
translate really well to being president and we knew that that was a joke. Anyone who had any common sense knew that
was a joke. Trump’s business experience, his daddy gave
you money to get started. Everyone around you was constantly Brown nosing
and you just ignored all the, all the rules all the time while bossing people around things
are different now. Yes, Trump, what hasn’t changed is Trump has
still surrounded himself with the Brown nosing sycophants that’s the same as when Trump was
in business. But Trump has tried taking the same sort of
attitude with China and China is not, you know, some concrete or steel company that
Trump has over a barrel. This is not looking good period. No matter your political affiliation. And that’s what I hope people understand. It doesn’t matter whether you’re for or against
abortion, this is bad, bad, bad. There’s no sign of it getting better, particularly
when the president sees it all as sport wins and losses without even understanding what
the definition of winning actually is, it’s going to get even worse. Unfortunately.

Author Since: Mar 11, 2019

  1. You know what else is a huge violation, Mr. Trump? Being in public office and still refusing to submit your TAX RETURNS. Oh, also?not paying income taxe. The government doesn't take kindly to that but you know that. Hence the refusal to be entirely transparent with your financial records. But I pray you stay srupid on this and keep refusing. Tax Evasion can be yet another federal charge to indict you with.

  2. I wonder what the % of US imports from China is represented by products of American-owned companies manufacturing in China – rather than Chinese-owned and manufactured products?

  3. Trump doesn't read daily military briefings. What makes anyone think he knows what's happening in the world. He's a fat imbalanced piece of shit that shouldn't have any power

  4. Trump supporters have Battered Women Syndrome at this point. They're abused and confused, shaking in corners covered in blankets and crying "you dont know him like I do. He's so special, he really cares for me!"

  5. To preside over the CCP, which is the cadre of who runs China, one has to climb through the party ranks to earn the party vote of confidence as a leader. So before one is ever considered for the high office , one then must pay his/her dues.

    It is an exercise of continuity. Anyone with an understanding of how their political machine works can guess where the country is headed. There might be dissents, infighting , factions, yet at the end, there is one strong position endorsed by the majority.

    Leadership there is bred and infused with doctrine, for the better or worse. There are no hucksters , opportunistic types, populist adventurers . There are , nonetheless , ladder career climber types, sycophants, and politicos, but at the end only the best prevails as an appointee for the higher office. So it is , in the pure sense, a meritocracy.

    The general populace accepts and buys in in the unified stance , proclaims unquestionably faith in the leader, and for as long as everyone can earn, no one question authority. Dissidents are ostracized.

    Now what works for China might not work for the USA. And so the mere insistence American Leaders have to China as to adhere to their brand of democracy and commercial practices is at best laughable.

    Number one concern for a Chinese leader is to make sure every able working citizen can provide sustenance and a decent living standard for their own.

    Americans in general , and in particular Washington Bureaucrats and Politicians , don’t seem to grasp this. China is for the Chinese. Their rise as an economic power só exists to maintain prosperity in China. And if you work under that premise , you too my profit from it as well.

    Deng Xiaoping, once a leader , visited other Asian Countries and realized how poor were the Chinese people. So he went about making sure there was a job for every Chinese citizen.

    I do not know much about Li Jintao , but as far as a Xi Jinping agenda looks like, he is there to make sure China consolidates as a Mercantile Power , and that the Country moves from a maker of cheap and commoditized products, to a producer of high value added products and technology. And while at it to continue consolidation for its financial might.

    Whether you agree with how things are done there , you must recognize decisions at the high level there are a result of continuity and mandate.

  6. And it will be fun watch his heirs infighting over the will taking control of his empire while he fights doctors over hid diagnosis.

  7. Thank you for the good show.It is so nice to listen to some one who does not raise their voice while speaking.You will make a good Cronkite one of these days.

  8. I’m telling my conservative friends I’m not too worried about the market since I’ve been cashing all my Soros checks. I think some believe me….lol

  9. How anyone can notice the diffrence between confusion and stupity when it comes to this moron motherfucker is beyond me.

  10. you guys are on the same team as your enemy the MEDIA, that has brainwashed you to not disliking this president because hillary their puppet did not become president

  11. Actually, according to Paul Krugman, China had NOT been manipulating its currency recently to keep the value artificially low (even though they had done so at times in the past). Here is some of what he had to say"

    "At this point, China’s currency policy is actually fairly benign; if anything, its policies are keeping the renminbi stronger than it would be otherwise. Meanwhile, U.S. unemployment is low. There are plenty of things to criticize about China, but currency policy isn’t one of them. With unerring aim, the Trump administration has decided to accuse China of the one crime of which it’s innocent. Of course, this administration doesn’t have to fear setting off a trade war, since it has already done that."

  12. I am a liberal progressive. One thing I absolutely detest is when a fellow liberal progressive makes a claim that uses the same cherry-picking techniques that right-wing conservatives use. You cherry-picked your claim that the DJI is lower than it was in January 2018. How about selecting just a month or two before that? Can you still make the same point?

    Don't diminish our cause by picking convenient comparisons. Pick earth-shaking, shocking comparisons that are based on facts. Anything else hurts our cause.

  13. And the US don't manipulated dollars, they can print as much as they want. Increase spending on credit, there's nothing to back the dollars other than a trust me, US credit is good…. So that's not manipulation of money.

  14. video games is wat chump is trying to pass on to barron.poor kid he must being the middle of bullied.he may have mental illness by now

  15. I have an American friend who thought Trump was the greatest thing since sliced bread because he was going to run America like a business! How is that working for America?😁

  16. 1:56 I think you're supposed to to write "an historic" rather than "a historic". But I am not a native English speaker, nor have I ever even lived in an English-speaking country, so what do I know?

  17. As a portfolio manager, I can tell you, this is the most ignorant, uninformed president of all time. He is causing irreversible damage that will be felt for generations.

  18. David, I know it's a simple truism in the US (believed by both the left and right) that China is artificially keeping its currency low, but most international observers (world bank, IMF etc) conclude that China did manipulate its currency in the early 2000s, but hardly at all now, and recent interventions have been more on the side of propping up their currency. The recent fall is mainly thought to be because of the trade war, which ironically has hurt china worse than the US.

  19. He is going to use it as a campaign strategy. Because he will start to negociate in 2020 with China and use it for it's elections!!
    Just remember this…

  20. Yea Trump is an idiot he only made a few Billion Dollars, lets listen to Pakman the youtube talk show guy on business and trade negotiations 🤦‍♂️

  21. Could one person be allowed to have sooo much power without being accountable – anytime anywhere? Check and balances are thrown out of the window. Guess history tell us the answer is YES.

  22. I see china as a threat to democracy. I think every democracy should try to cut ties with china and work toggether with other democracies. but what Trump is doing is blindly cutting ties with everybody, and he has no respect for democracy

  23. The fed is the biggest scam ever created .
    Quantative easing or basically printing more money as a bandaid solution for a system that is about to implode .
    Buy gold silver and digital assets

  24. It is effecting Australia now with these stupid idiotic trade wars with China,please vote the demented mentality sick lunatic out.

  25. This trumpelstilzchen has no education in business and this trade mess he created he will blame everybody from Obama, Democrats, South America, and greti and pleti. Get this idiot out of office! Never ever challenge the mighty dragon of the middle kingdom! This will lead to demise and trumpelstilzchen will loose bigly!

  26. David, China didn't manipulated their Currency. They just didn't want to deal with Trump so they let their Currency float and devalued itself by not touching it. It's just a reaction to the trade war.

  27. What exactly is the Federal Reserve supposed to do about China manipulating their own currency? The Fed has no control over China's currency.

  28. Remember, Trump graduated from an Ivy League Business School. You can graduate from one of the supposedly best schools in the nation and not know a thing about your major. And Trump is hardly the first example of this. FFS, I don't think he could get a business degree from my local state university, but Wharton gave him one?

  29. TRUMP CAN NOT MAKE A DEAL DECENTLY………..HE BUYS PAINT FOR MAR E LAGO AND DON'T PAY…….TWO YEARS LATER IT NEED TO BE DEMANDED…….AND THE LAWYERS ASK FOR A REDUCTION OF THE PAYMENT………AND HIS LAWYERS…….LATER GO TO JAIL FOR THAT KIND OF DEALS THE DONALD MAKES THEM DO……….HIRE WORKERS, AND LATER THE WORKERS NEED TO ASK THE LABOR DEPARTMENT TO INTERVENE TO GET PAID……….WHEN HE CLOSES A BUSINESS HE PREFERS BANKRUPT THE BUSINESS BEFORE THAN PAY ANY MONEY TO THE WORKERS FOR THE TIME THEY SERVED……….WHAT DECENT DEAL HE MAKES?……….HE MAKES HIS MONEY PLAYING MILLIONAIRE AND DEFRAUDING PEOPLE

  30. Let's ignore for a second that macroeconomics and international trade are not the same as running a business (at all). Economist are number nerds, businessman are glorified merchants. Donald Trump bankrupted 6 businesses, he's called the king of bankruptcy and he's proud of it. His business model is just selling his brand but there's no substance of any kind. He has neither the skill nor the qualifications to make decisions about the economy of the most powerful nation in the world.

  31. Everyone seems to be missing something here: With Trump, it's always about personal gain. Imagine being in a position where you're not only a greedy, self centered hedonist but you are also able to manipulate the economy of a large country. You could force the stock market down, have a 3rd party buy stock low, then you drive it back up, dump your stock and repeat at will. Follow the money!

  32. Next day stock market bounce back .. meanwhile the radical liberal left continue to enslave one another , put your chains on and do what your Democrat owners tell you to do

  33. He is going to force the farmers out of their jobs, and no one will grow the food anymore. I guess we will get really skinny… is that what he means by "great again"?

  34. It's not just rhe currency manipulation with China. I've bought many items from China that cost less than locally sourced ones including international postage!

    Example: Cheap multimeters; £1 delivered when the cheapest here were £3 'over the counter'. I can't send an empty medium Jiffy Bag to China for less than £3!

  35. Democrats will get blame for when the shit hits the fan as a result of Trumps policys. If they win 2020 that is.

  36. 2 things: raising interest rates makes money MORE VALUABLE…lowering means LESS interest income for bond holders. Shhh, trump is an idiot.

  37. Best reason the US needs to get its education system in order: almost half the population was dumb enough to vote for Trump. But seriously, there needs to be far more leftist push back for this constant bullshit with every means necessary. Otherwise the youngest two generations might as well just kill themselves, because there ain't going to be any hope after yet another neo-liberal induced financial crisis. How do you justify this to yourselves Trumpsters? I'm honestly interested. Wrecking the economy with this absurd idea that the US will ever get its manufacturing back (which it never will due to the inherent contradictions of capitalism), taking parents away from their children and their children end up having to rely on strangers to survive creating the perfect situation for abuse, LITERAL concentration camps–and if you don't think they are, you need to actually look up the definition and history of the concentration camp. I could go on and on, so how do you justify this?

    A functioning democracy requires an educated population; obviously the United States is not a functioning democracy. A non-functioning democracy only allows the far right wing cancer to spread.

  38. Dips of this size also make me think that tRump's support from the ultra-rich is waning. The interest rates are currently so low that there's no way to make the type of "deep" cuts that tRump needs to keep the economic engine humming along to keep his base support.

  39. Ahhhhhh haaaa trump implemented polices which has the stock market go from 19,000 to 27,000from the date he was elected. The previous terrible mind nigg grow thinks he was keepin it real.

  40. I work at a broker/dealer. Deal with IRAs for clients every so often. Hearing clients regularly comment on the value of their retirement savings plummeting is target disheartening.

  41. Fat ass donnie can hardly see past the end of his nose let alone what is happening as he fiddles and America burns. The man who would be king shall execute all those who oppose him. All hail trump, king of the fools.

  42. There is so much money being printed the rich don't know where to put it. They will be right back putting it in the stocks unless you build more houses for them to buy and rent out.

  43. Obviously the man skipped economics courses in university and its resulted to trade policies from China prior to the Nixon trade deals.

  44. David, you should get Professor Richard Wolff on to talk about why the stock market dropped in response to the Trump imposed tariff.

  45. Trump is trying to show white Republicans and Right Wing Bible Belt Conservatives who voted him in to office’ that he will fight and discredit any nation competing on the world stage even if it means losing American jobs and hurting badly the American economy to the point of an economic crash!

  46. His casinos went bankrupt,how in the world does a casino go bankrupt? They are virtual money making machines I can get a bunch of drunk high school kids to run a casino and it'll probably turn a profit.

  47. More bad news and it’s for Americans. Trump lied and said we would be winning so much we’d get sick of winning. Well we’re sick for sure but not of winning. We are losing in all fronts. Trump has turned our trade with other countries upside down and has turned our allies against us and there’s been no winning except for the top 1% which is the only ones he really cares about. Working families, poor people? The shrinking middle class, are and will continue to pay for all Trumps destructive policies. Farmers, ordinarily working people are losing and finding it harder than ever to pay the bills and keep food on the table. He wants to cut pretty much every program around set up to help poor & working class people while at the same time making it harder to earn enough to live on and having to pay higher & higher prices for things we need. Trump has no vision for this country he’s just out to make as much $ as he can, divide and terrify as many as he can, and give as much as he can to himself & his rich donors & friends. Why working people support this man and the republicans is beyond me. I don’t get it. I live in one the poorest states, Ky and the poorest region of the state, the Appalachia’s. Life is hard here and getting harder. People here are putting their hope in Trump to bring bk coal mining jobs which have been lost to other energy sources that he can’t bring bk. B rolling bk regulation it makes it easier to keep some mines open but at what cost to our environment. And I’m not saying the miners are doing anything wrong. They just want to support their families. We need jobs from outside the fossil fuel industry brought in so we are relying on coal mines or fast food restaurants for our income. One is too low and the other is too unsafe for the environment and the workers. Miners pay a high price for providing for their families. They end up with black lung and other respiratory problems which greatly reduce their quality of life and shorten it. The war on coal is just that not on miners and their families. If the federal government would just help these communities and there’s plenty of them. Not just coal, but many factory jobs lost and going fast. We need to create good paying jobs to replace those lost & being lost. We need to invest in these communities by creating jobs that will help with climate change, green jobs, and infrastructure jobs, we need conservation jobs and jobs in technology. We need the government to invest in our schools so our children get better education. We need to invest in programs to lower drop out rates in high school and boost the number of students that go on to get a higher education. Only by giving people in these situations help, hope and educating them so they can become all they can become will this problem be stopped. Even now among those that go to university and get degrees, have to leave this area to get jobs. We need bring these communities up to speed with the rest of this country & the world and have this nation become number 1 in education, technology, green jobs & environmental friendly a regulations and policies. We should be leading world in these areas not lagging behind. As the richest? Greatest country on earth we shouldn’t hide from these problems and pretend they don’t exist we should be addressing these problems with the all the wealth & power we have on this planet!

  48. "We'll start a war", said the man. "We'll win it easy", said the man. "We'll get everything we want", said the man.
    The man was wrong.
    Because the man who says these things is ALWAYS wrong, and half the time he knows it himself. =_=;
    Learn, people. Learn, remember, teach your kids.

  49. Trump won't tell naive Americans that believes everything he says, despite the fact that he lies constantly. We are in a recession right now, U.S. is broke, borrowing begging, and in debt big time!

  50. Maybe we should go back to local farms supporting local communities. Our land has turned into big factories producing massive amounts of junk to sell to the world. Ok we will grow crazy amounts of food and send it to you. Ok we will do the same. Hey let’s make more food into fuel. Hey we made this cool toy you interested? Yes! Christmas list solved!

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