Bannon’s War Room Steve Cortes- China’s Precarious Economic Position. March 14, 2022
The Economy: Steve Cortes March 14, 2022
Transcripts from Bannon’s Room-Rumble Steve Cortes-China's Precarious Economic Position
Published March 14, 2022
Steve Bannon:
Cortes your assessment of where we stand this morning and let's throw in, Shenzen in that process, we tell you tell folks, hey, when these things start you don't know which direction they're going to head.
Steve Cortes:
You know Stevie it's fascinating right now. China is actually in a very precarious economic position. If we had a strong American leader. If we still had Donald Trump at the Oval Office, this would actually be a great time to be putting the economic screws to the Chinese demanding things like, economic reparations for the biological war that they waged upon the world, including the United States. Things like much higher tariffs for their imports and let me put some numbers to this just this morning as we speak, FXI is the ticker for the largest most liquidly traded Chinese ETF in the United States. It is down almost 5% right now as we speak. It is down 35% of its highs of just about six months ago.
So, the Chinese stock market is careening lower, extremely worried about this situation with the virus resurfacing with abandon and about the third largest city in China, Shenzen being shut down, the fourth largest port in the world, the second largest Chinese port, an incredibly important place for commerce. You mentioned that it's in some ways, a tech epicenter for the Chinese Mainland, particularly when look at Foxconn, which of course is primary supplier to Apple for iPhones and other significant products that we consume here in the West.
My point is China's actually in a corner if we could realize it, act like it, if we could play it but instead because of the weakness of Joe Biden, an imposter who occupies the Oval Office and because he has been compromised by the CCP for decades as a Senator, as a vice president as an ex-vice president private citizen and now unfortunately, totally worthless. Unfortunately, the tables have turned, and China believes that it has an incredibly strong hand to play, and of course it has enormous sway in what's going on right now in the Black Sea and Ukraine crisis.
You notice there was no coincidence of course that that Putin made that trip, not just to see the Olympics, not just to say hello to Xi. But, but to give permission from who has effectively become his economic Godfather in President XI to get permission to engage in this aggression against Ukraine. So, all of it is inextricably linked. If Biden would wake up and realize though that we actually have a strong hand if we play a curtain, if we say, hey to the world to the Ukrainians and the Russians, what's going on in Ukraine is human tragedy but it's not a national security crisis for United States and China, you're in a bad spot right now. And we actually hold the cards economically.
Steve Bannon:
I want to go back to a Steve Cortes, Steve we ran out of time. You were finishing, your thoughts. What were they?
Steve Cortes:
Yes, you know, it. By the way, Steve thank goodness for your show because the corporate media United States does not want to talk about the good news that we've actually gotten over the weekend and including today. And that is that negotiations are making progress. It’s not my assessment. That's the assessment of the leadership of both Moscow and Kiev. We got statement out of both sides Russia and Ukraine that there was substantial progress and the potential to even sign a negotiated truce within days. That's literally what they said. You know what is reacting, by the way, American media is not, but financial markets of some degree, right?
I mentioned before the China is getting crushed because of the virus situation. Nothing really to do with Ukraine in terms of that market blue, but there is a massive market move as we speak and crude oil today. Crude is down, eight dollars. This is the first significant fall for crude in weeks and the very reason is because there is some hope that there is going to be that there's de-escalation from the people who are most involved. So, Steve, we see this contrast right now Biden in Washington, DC, American Media, the Davos crowd Brussels are all trying to escalate but the people actually involved, the parties actually at risk, the people actually suffering are trying right now and apparently making progress toward de-escalation. We should join them in working toward that de-escalation it will of course be better for them, but it will also be better for us. And who knows crude oil right now, pressing $100 on the downside. Wouldn’t it be great to get crude back below 100 again. A negotiated truce can do that in the Black Sea.
Steve Bannon:
Real quick, tell people why markets are proxies are so important that reality, whether it's the stock market price of Taiwan semiconductor, or is the Chinese stock market today, or the commodity markets, or you always talk about markets. Why are they a good proxy for reality to let people know? Forget the spin. This is where people are actually betting hard cash and capital everyday.
Steve Cortes:
Exactly. Steve. It's where the rubber meets the road. So, it's one thing to have an opinion on. Let's use a sports analogy. It's one thing to have an opinion about March Madness and get in the pool, where you're risking nothing, or maybe a cup of coffee. Okay. Let's say you've got about 100 bucks this matters to you now. Okay, you're going to take it far, far more seriously. It's going to matter to you and so in financial markets where we see people committing capital the world over as I said, it's where the rubber meets the road. It's far more reflective of reality in my view on an ongoing basis. Not always perfect clearly and financial markets clearly get things wrong, but it's a far better reflection of the real assessment of the situation.
Instead of just someone pontificating on MSNBC or one of the Legacy Media platforms. So right now, today now again I could be wrong but as of today as a right now, this moment, crude oil is getting slammed. That's the first time it's happened and weeks. The reason are the headlines that largely got buried over the weekend that there is progress being made, that piece is actually possible. Am I saying it's likely look we’ll see it, very volatile situation, but the point is there is there is at least there's at least progress toward de-escalation from the He's involved. I believe there would be more progress if Washington and Brussels would stop trying to escalate while the actual participants are trying to deescalate.
DONE
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