I strongly suspect that Ms. Holmes' delusions that she's going to pull herself out of this mess will, at long last, be dismissed when the reaction she gets to this "3 for 1" offer is the sound of crickets.
"There is still room for both sides to resolve problems through co-operation and consultation, rather than just resorting to retaliation," said a Chinese policy adviser who added that "we should have plans in case things go wrong."
the Trump administration has warned that the U.S. isn't and won't bound by decisions made at the World Trade Organization, in outlining a new trade agenda that "promises to root out unfair practices by foreign countries" and to escalate what are already simmering trade conflicts.
The EU and other US trading partners have begun laying the groundwork for a legal challenge to a US border tax proposal in a move that could trigger the biggest case in World Trade Organisation history.
Markets have started this week feeling much relieved, notes Bloomberg's Richard Breslow, as the understandable fears that U.S.-Asia strategy might continue their lurch toward direct economic confrontation were given a respite. However, as Breslow notes, asset classes galore are at important levels and vigilance will pay a hefty premium.
As China got back to work after Golden Week, it appeared a renewed exuberance appeared in every orifice of liquidity provision (even as PBOC sucked up excess for 6 straight days). Stocks are up, bonds are up, and commodities are soaring (all as Yuan tumbles) and tonight authorities unleashed 100bn reverse-repo (for the first time in 7 days) as leverage seems nothing to worry about again yields drop and asset prices rise.
"Governments love [the war on cash]. Then they can control you...we are not going to have as many freedoms as we have now ...get prepared because we're going to have the worst economic problems we've had in your lifetime or my lifetime and when that happens a lot of people are going to disappear."
Having recently accused the US of 'wasting $14 trillion on war instead of its people', China's second richest man, Jack Ma, continued to voice his concerns to President Trump on a recent trip to Australia, warning retreat from globalization will only result in trouble. This followed China "lodging representations" with the United States over Washington's new sanctions list targeting Iran, which includes Chinese companies and individuals.
Just look at all the government and private debt accumulated on balance sheets around the globe for the last decade, and tell me with a straight face a) this is sustainable, and b) doesn`t have severe consequences.