Germany Tanking As Trade US – China Trade War Drags On – IOTW Report

Germany Tanking As Trade US – China Trade War Drags On

Conservative Treehouse

Reuters is reporting on a significant drop in German industrial orders, and they specifically point to diminished orders from the U.K (small part) and China (big part) as the cause. However, the analysis stops at the part where China’s lack of industrial orders is the leading contribution to retraction in the German export sector.

What the financial analysis does not approach (ie. the third rail of multinational corporate admission that must never be outlined), is the reason why Chinese orders for German industrial goods have dropped.

The problem for China, and ultimately for Germany, is that Trump’s trade reset has stopped a big amount of U.S. wealth from arriving in Beijing. Simultaneously, Beijing is countering Trump’s tariffs by devaluing their currency. The rebound economic impact is doubled. China has: (1) less income; and (2) less value within their own currency. More

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