Last week, I wrote up a macro bond play that involves three parts: currencies, spread differentials and default risk. I want to hone in on one of those three today: currencies. And here's the lead:
"If the U.S., for any reason, cuts its imports from a trading partner, that country’s economy and currency both weaken, so it buys less from U.S. companies." - @greg_ip on how tariffs hurt exporters too https://t.co/ju5ZZASJPa
— Edward Harrison (@edwardnh) July 9, 2018
China's economy and currency are hurting
This is the macro accounting that a lot of people looking at the budding trade war don't appreciate. The trade war between the US and China is leading to a weaker Chinese economy and a weaker Chinese currency. This is particularly t...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.