Samm
June 6, 2018, 6:20am
42
He poses no particular danger to this country unless he decides to confiscate our guns and blame the Jews for all of our troubles.
Because we don’t have a level playing field.
Good to hear someone else picking up on something I’ve been saying for a decade here.
The value of the USD is strictly based on what foreign investors think of the stability of the nation and the dollar.
When they lose confidence in the US, the USD will crash.
Fortunately so much of the world’s financial transactions go through or depend on US banks, brokerages etc it’s going to take something massive to cause such a run.
1 Like
NYC is the financial capital of the world.
Smyrna
June 6, 2018, 10:03am
50
I’d say the “screw king” is screwing himself. Good…maybe a US firm will now build the screws for the industries that were buying them from this German firm and create more good jobs here?
zantax
June 6, 2018, 11:21am
51
CassandraJoe:
moonshine:
One of the world’s biggest suppliers of assembly and fastening materials, Germany’s Würth Group, will not invest any more in the United States while President Donald Trump is in power, the patriarch of the Würth family has said
they do 2B a years in business in the US. I cant blame them hwo would want to make further investments with a madman in power
Hmmm…Wurth appears to be privately held, so the patriarch’s statement carries some weight.
However, it doesn’t appear that Wurth has any manufacturing facilities or subsidiaries in the United States, so that aspect of not investing in the U.S. sounds a bit hollow (note he didn’t say Wurth wouldn’t SELL products in the U.S.)…
But by saying Wurth wouldn’t invest in the U.S. he may also have been talking about financial investments - stocks, bonds, etc. That makes the statement a little more significant.
In effect, Reinhold Wurth is saying that his large German company doesn’t believe the United States is a safe place to invest, anymore. And if a multi-billion Euro corporations says it, how many other financial giants agree - or will agree?
We run trade deficits with other countries, Germany included. The main reason we can do that is that those other countries believe that we’re so good for the debt that they actually buy much of our Treasury bonds at high prices. The price of the bonds represents the Bond Market’s confidence in the U.S. economy. If investors - to include other countries - lost confidence in the U.S., lowering it to, say…Brazil, the price of U.S. Treasuries would plummet, interest rates would rise, and the Dollar would decrease versus other currencies, sending our trade deficit even higher (offset somewhat by higher sales as American products became cheaper overseas).
So when Wurth says they won’t invest in the United States, it might be because they don’t think this is a safe country to invest in.
And if other countries go along with that, we might be headed for trouble.
Wurth is a country? Oh and I hate to break it to you but the dollar is currently very strong and the bond market is doing fine. Treasury yields are the highest they’ve been in years. Obama was the one who needed the fed to buy them, not Trump. The chief worry with him at the helm is inflation.
zantax
June 6, 2018, 3:05pm
53
CassandraJoe:
Canary in a coal mine.
More like meaningless anecdotal evidence.
Hmm. Who to trust more? A billionaire industrial titan, or a random internet poster with a history of not knowing much about financial markets?
I think we all know who to trust here…and it ain’t you.
Who can say if it was something specific or a general sense of things? Given Würth’s statement regarding the “general, uncertain political situation” it sounds like he’s less than convinced about Donald’s status as a stable genius.
Just gonna leave this here…from May 2018:
Smyrna
June 7, 2018, 12:51am
58
Keyser_Soze:
Hmm. Who to trust more? A billionaire industrial titan, or a random internet poster with a history of not knowing much about financial markets?
I think we all know who to trust here…and it ain’t you.
By current lib standards, this now makes you a Nazi.
What sane foreign business owner would want to do business in the US with an unhinged person in the White House?
MarkyS
June 7, 2018, 1:19am
60
Then let him eat the cost of NOT doing business in America. We don’t need his stinking fasteners. We can make our own.
It’s BETTER if we do!
M
DougBH
June 7, 2018, 1:25am
61
Keyser_Soze:
Hmm. Who to trust more? A billionaire industrial titan, or a random internet poster with a history of not knowing much about financial markets?
I think we all know who to trust here…and it ain’t you.
If I’m not going to let a German industrial oligarch tell me what to think about my President, then who can I trust to tell me about my President?
Sounds like foreigners attempting to influence American politics. When is Mueller going to indict them?
You have to figure if he can make this kind of move he really didn’t need the money all that much.
