The trade war escalates, and the fog of war descends
Posted on AllSides August 8th, 2019
From The Left
Carl von clausewitz, the Prussian military theorist, never wrote about currency wars. But some policymakers see them in his terms: as the continuation of trade politics by other means. That, at least, is how the Trump administration views China’s decision on August 5th to let its currency weaken past seven yuan to the dollar for the first time since 2008. Though arbitrary, that threshold has assumed huge symbolic importance among traders, economic officials and fund managers (see Buttonwood). They were left stunned.
America’s Treasury quickly branded China a “currency manipulator”,...
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