U.S. - China Trade War Pt 2
From the Ag Information Network, I’m Bob Larson. Traders are watching the commodity markets very closely with tariffs looming over all segments of agriculture.
Mike Zuzolo (ZOO-zoh-low) of Global Commodity Analytics says the trade war with China is officially underway, but a lot of what happens next will depend on what happens with Chinese currency …
ZUZOLO … “I think President Xi is in the same situation. He's not going to back down. He saw what happened to Japan in the 1980s. Japan had almost the identical property bubble that China does right now. At the peak of Japanese strength, when they were buying, reportedly, the Empire State Building and golf courses around the United States. The Japanese imperial palace grounds were worth as much as the whole state of California. Their property bubble was so big.”
And 40 years later, Zuzolo says here we are again …
ZUZOLO … “So, I see huge similarities between here with Japan in the 1980s but unlike Japan, China saw what happened to Japan after they bent and allowed their currency to appreciate, and I don't think they're going to allow their currency to appreciate like we want them to. So, I see this going on. I'm hunkering down for a trade war with China, and so I'm going to be focusing on soybeans, hogs, and cotton primarily.”
Again, that’s Mike Zuzolo of Global Commodity Analytics.
For more information, go to globalcommresearch.com(Link is external).
