Authored by Gail Tverberg via Our Finite World blog,
Recently, a Spanish group called “Ecologist in Action” asked me to give them a presentation on what kind of financial crisis we should expect. They wanted to know when it would be and how it would take place.
Trump's "up and down" relationship with China may be on the precipice of taking a sharp dive into the proverbial abyss. After frequently threatening to label China a "currency manipulator" on the campaign trail last year, Trump's relationship with China's President Xi Jinping took a decided turn for the better after a meeting at Mar-a-Lago in which China vowed to help address the "menace of North Korea" .
Hayman Capital's Kyle Bass ventured on to CNBC this morning to drop some painful truth bombs about Trump's "drastically changed Chinese diplomacy" and China's looming "come-uppance."
http://player.cnbc.com/p/gZWlPC/cnbc_global
Bass began by highlighting what he calls a "tectonic shift" in US-China relations in the last few days, pointing to two crucial events...
1. Things changed drastically when US launched unilateral sanctions on China over North Korea...
One day after the US announced it would sell $1.42 billion in weapons to China's offshore nemesis Taiwan, Beijing lashed out at the United States, saying it was "outraged" and demanded the US revoke immediately its "wrong decision", saying it contradicted a "consensus" President Xi Jinping reached with his counterpart, Donald Trump, in talks in April in Florida.
The proposed U.S. package for Taiwan includes technical support for early warning radar, high speed anti-radiation missiles, torpedoes and missile components.
Validating the recent surge in iron ore, which has jumped more than 18% from 2017 lows hit just two weeks ago on speculation the PBOC may be willing to flirt with another round of inflation, overnight Beijing reported an unexpectedly strong bounce in its manufacturing and service sectors.