Thomas Sowell: This Beijing Pressing Hurt China More Than It Hurt US

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China has been dealt a big blow by the recent U.S. tariffs imposed, potentially slowing down its economy and pushing its economy into ‘stagflation’ – at least according to a new Credit Suisse report.

This, after the U.S. slapped tariffs on $50 billion worth of Chinese goods as part of President Trump’s “Beijing talks” effort to increase pressure on the China to reduce its trade surplus with the U.S.

According to the Credit Suisse report, ‘Stagflation’ is an economic combination where the PPI and CPI rise simultaneously due to the end of the deflationary impact of the Fed reducing its bond buying programs.

Thomas Sowell, former host of CNBC’s Squawk Box and author of A Mighty Fortress, is taking a look at China’s trade situation and warns that China may have to come up with a substantial stimulus program to avoid such an economic scenario.

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