Isaacs: Could Get U.S.-China Currency War, Not Trade War

The video discusses the challenges faced by China in stabilizing its economy, particularly the RMB, amidst potential protectionist actions. It explores the risks of trade and currency wars with the US, especially under Trump's presidency. The video also analyzes India's economic concerns, focusing on the negative impacts of demonetization and the potential instability of the Indian rupee.

What are some measures China can take to stabilize its economy?

• Reducing state-owned enterprise influence

• Encouraging foreign property purchases

• Increasing foreign currency reserves

• Tightening paperwork for currency conversion

What is a potential consequence of a currency war between the US and China?

• Decreased market unpredictability

• Immediate resolution of trade disputes

• A stronger US dollar

• Increased global economic stability

What historical event is mentioned as a precedent for a currency war?

• The 2008 financial crisis

• The 1994 Chinese economic roadblock

• The 2013 taper tantrum

• The 2001 dot-com bubble

What is a concern regarding India's demonetization policy?

• It will decrease US bond yields

• It will stabilize the Indian rupee

• It may negatively impact the Indian economy

• It will lead to increased foreign investment

What tends to happen to the Indian rupee when US bond yields rise?

• The rupee experiences a sudden drop

• The rupee remains stable

• The rupee appreciates significantly

• The rupee becomes more attractive to foreign investors