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About politics.
The elderly political giant of the US - Henry Kissinger - warned: the US and China are on the verge of a new Cold War -2 - and the consequences from it will be no less than from War-1, if this is not stopped.
Kissinger - in politics, is roughly like Alan Greenspan - in finance.
There are reasons. Trump unleashed a tariff war against China - this could be attributed to Trump's tyranny, but the problem of China exists in reality. It all started in the late distant 1970s. In China, another great one - Deng Xiao Ping - turned China to a market economy after Mao's insane state socialism. The US enthusiastically supported China's turn to the United States - especially despite the fact that it broke the united front of the socialist countries led by the USSR against the west. Thus, the 40-year history of economic embrace of the US and China began. China has greatly benefited from the opening of US trade and investment. At the same time, the United States almost always turned a blind eye to the clearly non-democratic order in China, maintaining power in the hands of the Communist Party, and violating human rights.
However, China has grown so much that it presses the United States from first place in the world in terms of economy. If you count on PPP - China's GDP is already greater. than the US GDP (at face value so far less).
China has almost caught up with the US in terms of technology - "almost" - is of tremendous importance. The USSR, which was highly developed technologically - in the defense sphere - approached the United States in the most key defense technologies for a distance of about five years - by 1980 - but could not bridge the gap and could not withstand the strain of the race.
All that China could get from borrowing open technology - it received.
Next, the issue of critical technologies.
The question is about US leadership and security. And of course, the United States began to seriously fear China. Therefore, Trump is just an expression of collective fear of China.
This is the background of the Trump-China trade talks.
EURUSD: The great standing under 1.1085 - 1.1100 continues.
We buy at the breakout of 1.1085.
We sell from 1.0985.
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