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Americans love flags.
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The over-sized flag, the “Star Spangled Banner”, was a strategic tool of Fort McHenry
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at the Battle of Baltimore and the US national anthem itself is named after the flag.
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If the United States ever truly intended to communicate that it believes Beijing seats
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the rightful government over the island of Taiwan, then Washington DC would have demanded
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that Taiwan fly the Chinese Communist flag over its own flag, like Hong Kong does.
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But, it didn’t and they didn’t ask.
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The test of what Donald Trump thinks about China is not a question of how many times
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he sees the word “China” on his globe at home, but what flags he accepts flown where.
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Is China wise to what’s going on?
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Perhaps money is making all the difference.
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China’s PLA Navy is headed for an increased budget.
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If money was China’s answer, perhaps money tipped-off Beijing in the first place.
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According to Obama Treasury rules, China is only 1/3 of a “currency manipulator”,
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exceeding a $20B trade deficit with the States.
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The other two rules relate inflation to GDP and official currency purchases to GDP—two
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things where China plays by a different set of rules than American economics.
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China “declares” its own currency value, it is not determined by the markets, making
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what the US refers to as “inflation” irrelevant to China.
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The second irrelevant Obama rule relates to “official” currency purchases.
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If only economics were only affected by “official” purchases, many other economic problems would
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be solved.
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But, economies are affected by “actual” purchasing, not merely whatever we happen
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to label as “official” this decade.
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The Chinese, especially, are experts at looking good “officially” while doing the bulk
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of their work under the table.
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Why else would Asians be so focused on cram schools and testing?
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Then, there is the task of calculating “GDP” in a heavy back-and-forth trade economy.
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In 2011, the US slapped tariffs on China-made solar panels, which were made with materials
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imported from the US, which China also slapped a tariff on.
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Not only is actual “domestic” product difficult to measure in a “Venn diagram”
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of overlapping markets, there is also the problem that China’s government behaves
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like a company itself—benefiting from tariff revenue, thereby triggering another slew of
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investing and purchasing opportunities.
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If economics were a pair of glasses, China operates in ultraviolet light that no pair
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of US lenses can detect.
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So, not only were the Obama Treasury “currency manipulator” rules an attempt to measure
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the light with a wind sensor, Trump gets what Trump wants.
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If China is destined for the “currency manipulator” list, it will get on that list one way or
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another, and there is a laundry list of ways that can happen.
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But, then, there is North Korea.
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While the “experts” lecture the world about how “trade wars” always backfire,
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China harbors its own trade war with the government in Northern Korea.
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Kim Jong Un isn’t happy with Beijing and Beijing wants to talk about it with the US.