President Obama took off the gloves toward China in a press conference yesterday after a meeting with his Chinese counterpart President Hu, leveling some of his most bellicose rhetoric yet at the country’s trade and currency practices.
Assumedly that he’s been made aware that this kind of behavior is almost never effective in influencing the Chinese, so it may imply an intense level of frustration within the Administration. If so, this could mark the beginning of some serious political turbulence, which would be likely to augment current market volatility.
On the other hand, it might just be political campaigning. If so, it’s safe to assume that Hu was warned or at least tipped off ahead of time, and that nothing serious will come of this. Time will tell.
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