So it is interesting that there has not been a peep about the situation developing and that has been in progress on this subject for the last few months. I have to think if this happened with a different party in office it would enrage the blind followers and we would have ten threads about how horrible it is and what a poor leader blah blah blah.
To the topic, I find this lie fest saga to be very interesting. We get outright lies about the negotiations and progress all the time and yet here we are. China playing hardball and Trump standing with his golf cart not accustomed to someone actually standing up to him and even playing harder than he is. I think Trump greatly underestimates the lengths to which China will go ONLY based on the way Trump is treating China and the lack of respect he is showing and games he is playing.
It shows that Trump is out of his element and league dealing with these types of situations. China has and can go much further to make their point than the US can with regards to not folding and not caving if they feel it necessary. This drop really is nothing still, the market hasnt even taken back 1/4th of what it padded in anticipation of a resolution and they have greatly underestimated the potential this has to do harm to our economy.
China letting their currency fall as they did this weekend is a massive slap in the face to Trump and shows they are playing the long game here where Trump rarely does, he likes to intimidate, offend and bully his way without regard to any consequence for his actions and classlessness. Lets see who folds first or who steps forward first, I have to think China is fed up with the insults and intimidation approach this administration uses and any resolution will not be quick.
If the Yuan keeps ticking further above 7, the further it goes will show their resolve and what they want to accomplish since they are supporting it and manipulating it and can do so quickly and with great impact.