Let’s take a look at an article I recently came across, as well as the author of that article.
According to Dion Rabouin, a financial markets reporter for Yahoo Finance, “A Trump trade war victory over China could be disastrous for the US.”
“Disastrous” is strong language. It’s always good to consider “the source” when we are determining how much credibility and value we should give a story.
According to his Yahoo bio, “Dion Rabouin covers markets for Yahoo Finance, including bonds, equities and currencies. He previously covered Treasuries, FX and emerging markets for Reuters. He is not a business man; he’s a business, man.”
So, Yahoo doesn’t list any experience or qualifications to cover financial related topics…, just that he has covered them. Yahoo even goes out of their way to say Mr. Rabouin isn’t a “business man,” but that “he’s a business, man.” I’m not sure what that is supposed to mean, except I guess it’s supposed to be cute or funny in some way, which it isn’t in my opinion.
His “LinkedIn” profile says, “Dion Rabouin is a multi-platform, award-winning journalist with years of experience as a writer, reporter and editor. His work has appeared in publications including ESPN.com, The Hollywood Reporter, Huffington Post, The New York Times, Newsweek, Reuters and The Root. Additionally, he has been a contributor for television news networks including the BBC, NBC, PBS, ReutersTV and Yahoo! Global News with Katie Couric. He also has served as a news reporter and contributor for AM, FM and satellite radio programs across the country. Throughout his career he has covered everything from sports and entertainment to business and politics, writing breaking news and in-depth features.”
There’s nothing here that really shouts out “competent” to me either. ESPN? The Hollywood Reporter? The Huff Post? The (failing) New York Times? WeakNews…, I mean Newsweek?
Then we have references to BBC, NBC and PBS. All proud members of the biased mainstream media, to be sure. Oh, but he did do something with Katie Couric. I’m sorry, but I wouldn’t have even put that on there if I was you.
So, there you have Mr. Dion Rabouin, “an award winning journalist” (Just to let you know, virtually every “journalist” can claim to be some kind of “award winner.) who really isn’t imparting any kind of information based on education, experience or inside information. This is just the opinion of, and probably not even the original opinion of, some “writer.”
Ok, well let’s proceed from that standpoint.
Mr. Rabouin begins by saying, “U.S. President Donald Trump appears to be winning the trade war. (Winning is good right?) China is reeling from the effects of trade tariffs imposed by the United States and may be facing a major slowdown in its growth that could be worsened by additional tariffs, analysts say.” (Yes, tariffs usually do slowdown growth. Boy, these analysts are good! We only have to look at how China’s tariffs against us slowed our growth down! Funny, but I don’t remember hearing any complaining about how our growth would be slowed at the time though.)
“China’s rock solid economy has already started showing cracks. (Uh, ya, “rock solid” thanks to ripping off the U.S., to the tune of over $500 billion a year. Not to mention all of the theft of our intellectual property!) Growth in its manufacturing sector has slowed, its stock market has tumbled and the country has faced ‘extremely complicated and severe’ domestic and external conditions in the first half of the year, statistics authority spokesman Mao Shengyong said in a statement earlier this month. The country’s political leaders are also trying to roll back massive credit and debt expansion.”
“But that’s not just bad news for China. It could also spell disaster for American workers, U.S.-based companies and economies around the world.” (Like we all had it so good when we were getting taken advantage of with these unfair trade tariffs and all of our jobs were going overseas.)
“James Barrineau, head of emerging markets debt at Schroders, argues that a slowdown in China carries global contagion risks. China is not only the world’s second largest economy, and the world’s largest measured by purchasing power parity, it’s also a top trading partner with almost every country on the planet and a major focus of U.S. policy making.”
“‘If the market were to conclude that trade wars were causing significant stress in an economy of that size I think risk appetite globally would dry up pretty quickly,’ Barrineau told Yahoo Finance in a phone interview. ‘The U.S. is ‘especially vulnerable.’”
(News flash…, Mr. Barrineau is an investment management parasite who doesn’t care about U.S. jobs, or even Americans in general. He’s interested in making money for himself. Period.)
“That would be a major risk to U.S. markets, particularly stocks and other financial assets, as the benchmark S&P 500 index already is trading at historically high levels. Further, because Trump has antagonized and threatened tariffs not just on China but the European Union, Japan, Canada, Mexico and many of the world’s largest economies, the United States would be hit harder than other nations, the International Monetary Fund said last week.”
(How can we be “hit” harder than we have been getting “hit” over the last 30 years or more? The U.S. has been taken advantage of by virtually every country on earth, regarding unfair trade, unfair taxes, and the mass appropriation of our jobs and industries.)
“Liz Young, senior investment strategist at BNY Mellon Investment Management North America, says that there are more ‘hidden risks’ than possible benefits for the United States and the rest of the world ‘if things start to really blow up in China with the trade war.’”
(Excuse me Ms. Young if I don’t shed a tear for China. Somehow I don’t think anyone in China was crying over us.)
“Anti-American sentiment in China could mean significantly reduced sales for these companies, which represent a major share of the U.S. stock market, potentially leading to a drop in stock prices and a bear market or a recession.”
(Here we go again with the “anti-American sentiment.” Can we just leave “sentiment” out of the equation? We’re talking about business here after all. It sounds reminiscent of the liberal belief that we shouldn’t fight terrorism because it would incite more people to become terrorists. Flawed thinking appears to just promote more flawed thinking.)
“Seeking to get out ahead of these negative effects, companies would likely move more operations to China, Zhang said. More companies moving to China or to other countries outside the United States that aren’t involved in a trade war likely means more job losses in the U.S.”
(Wow, that is quite a stretch! I’m having a hard time imagining a parade of companies abandoning the U.S. to relocate to China right now, or in the near future. Especially if President Trump penalizes U.S. companies for leaving the country.)
“Trade statistics often distort the global economic reality today,” Zhang told Yahoo Finance in an email following a meeting in Manhattan. “As China has become the most important overseas market for many American firms setting up operations there … such distortion of the trade reality becomes even more severe.”
(I feel the biggest “distortions” we have to fear are the distortions and misinformation masquerading as knowledgeable analysis and unbiased opinion.)
Stay thirsty my friends! But remember, don’t drink the Kool-Aide. The truth is out there!