By coinnews 
00:00 Speaker A
Brian, I want to kick it off with you because I, I want to get a sense of the geopolitical aspect here. China throwing cold water on the idea of these negotiations. From where you sit, how likely is it that there actually is going to be a deal between the US and China at this point?
00:18 Brian
There will be no deal between US and China. If there is any deal, it’s an indication that President Trump will have folded under the economic pressure, which, which could be intense. China will never make a deal that involves rebalancing its economic model that would require really a change in the entire philosophy of political economy in China. So forget about China making a deal that gives the US what it wants. What is all this really about? It’s about global superpower status, effectively, the US and the West has developed supply chain dependencies that, if they don’t already, will call into the question the US ability to deter China from doing whatever it wants geopolitically. So I don’t think President Trump would’ve gotten into this if he wasn’t ready for a big battle. And we’re looking at one.
01:36 Speaker A
So Michael, how do you respond to hearing Brian say that a deal, it’s not likely. What does that mean for markets?
01:45 Michael
Well, unfortunately, I agree with much of what Brian presented. Um, I would suggest that the Trump administration probably underestimated the impact of the personal and the personality associated with delivering the message. Trump is very broadly despised within the diplomatic corps around the world. That has meant that Europe has reacted negatively, Canada has reacted negatively, even Japan has reacted negatively. And China is taking advantage of that. Ultimately, China is incredibly dependent upon the United States and the rest of the world to absorb the excess production that it needs to create in order to maintain its economic model. I’m a little bit less sanguine on China’s ability to extend this for an extended period of time. They have their own internal challenges, but certainly the Trump administration has created the option for them to exploit those. In terms of the market implications, I think, you know, unfortunately, we are seeing that every time positive news comes out on trade, the markets will react positively because they know that’s what needs to be resolved. The credibility of the Trump administration in terms of speaking toward settlement or towards progress is becoming less impactful over time. So the rally we had a couple of days ago or yesterday was far less than the rally we had before. Much of that has faded. My expectation is, is that at some point we’re going to have to see this resolve itself as Brian alludes to by the Trump administration likely rolling over at this point.