What China has to do with the price of coffee in my office . .

Posted: September 14th, 2009 | Filed under: Blog | Tags: , , , , | 1 Comment »

Today were drinking more coffee. We’re on edge because the government has thrown a monkey wrench into our system. What has changed and how could it affect us? First, we are unsure how China and the US markets are going to respond to Obama’s tire tariffs. Its not uncommon for the president to take action in protecting domestic industries early in their terms but here is the issue. Obama, unlike President Bush, has decided to aim these tariffs directly at China rather than globally. I know the Bush steel tariffs were not totally directed at China like the tire stuff it. China strongly opposes these tariffs and feels as “unfair trade” from the U.S is cheating them. This is partially true. But keep in mind the bottom line is that the market does not know how these two governments will react. Thus, the uncertainty that will cause coffee futures in trading room floors to increase . . .