Pysh and Lavish on China vs Trump
Okay so I could have chosen a slightly less inflamatory title for this post. Really it's China vs the USA rather than vs Trump, but the former does sound a lot better.
Anyhow I thought this segment from the latest We Study Billionaires Podcast was a perspective offering a lot of clarity. Preston Pysh and James Lavish are discussing China’s response to the Trump tariffs [37:42]:
Preston Pysh: I wanted to talk this, this is really interesting, this happened this morning. This was posted like 4 hours ago: “Trump: If China does not withdraw it’s 34% increase above their already long term abuses by tomorrow April 8th 2025, the United States will impose additional tariffs on China of 50%, effective April 9th”. An hour later Zero Hedge posts this 10 year treasury yield chart, that shows that the yields are back up to where they were at when the tariffs were originally announced with the headline, “China responds by selling $50 billion in treasuries. Oh by the way, the yields on the treasuries are now almost unchanged since liberation day".
James Lavish: And that’s the problem.
Preston Pysh: That’s the problem...is their response isn’t words, it’s actions of “Hey all these paper promises you have been shoving down our throat, we are just going to basically…
James Lavish: We don’t want them anyways! We know that they are real negative yield, we know that, because you guys print SO much money. We know that.
Preston Pysh: Yeah, crazy.
Really feels like a scene from one of those manga cartoons, Godzilla vs Megatron or something. If nothing else, it's clear that these two are both very definitely mega. #