Hi everyone, and welcome to another wise money tools video. Glad you could join me today. Maybe you're on the podcast driving, glad to have you as well. So we're gonna talk about trade wars. I mean, this has been a big deal, it's dropped this stock market. Today is the fifth of August and we've had a 1700 point drop in the last a week or so. So there's a lot of people scared wondering what these trade wars with China gonna do. Basically what happened was, Trump said that if you guys don't start playing by the rules, we're gonna increase our trade tariffs on you by 10%. come September first, on our agriculture was like $300 billion worth of goods.
And so rather than China backing down, they played that. They played hardball. And they said, Okay, well, then we're gonna quit buying so much goods. And then they really played the, quote unquote, trump card, and they devalued their currency. Now from a world global, kind of working together perspective, they weren't supposed to do that. In fact, the Fed should be all over them for doing that. So should all the other countries, because when they devalue their currency, what happens is when Well, first off, if you're in China, and now you want to go buy American goods, or really goods from any anywhere in the world, your currencies just been devalued.
So now it costs you more to buy goods from other countries. How that can be good if you're in China, because it's going to persuade you, if you will, to buy more Chinese goods. What it does to Americans, is it with that devalued currency? Now we literally can go in and buy more goods from China cost us less money. The question is, will are, will we do that, and that's where this whole trade Ward is trade war is gonna take us is who's going to who's going to flinch first, who's going to back down first. Now, I'm not trying to say trade wars are good or bad or indifferent.
But I kind of get the idea we've been kind of kicked around pushed around in our country and the trade imbalances with many countries for decades. And it is kind of nice to see that we're finally standing up for ourselves and saying, Hey, you know what, this just isn't fair. It's not fair to our manufacturers. It's not those fair to those who like to import export good. So let's get more on an equal playing field. Not to mention, China does a really good job of stealing our intellectual property, and taking advantage of patents and so forth over in their country that are theoretically internationally patented. So there's some reasoning behind trying to get this all back on good footing.
However, in the meantime, it can sure cause some turmoil. We've talked about this before, the stock market loves predictability, reliability. And anytime there's any kind of a shake up. Yeah, the jitters go through. And you can see what happens. I mean, just even today, part of that 1700 point decline today was over 700, just in and of itself. So the markets do not like it when they can't predict what the future is going to look like. And we can't right now, we do know that agriculture is gonna get hurt, to some extent, because China is going to back off buying some of our agricultural products.
And again, with the devalued currency that they've will, as they devalued their currency, it's gonna affect our import export, as well. So it's interesting, I don't know how it's all going to turn out. But one question that was asked to me from a really good friend, is this the time to buy a house or wait for houses, they that this person was told that housing was gonna drop dramatically because of the trade war? I don't see that correlation, because most of the materials that we use to build houses are American, they're here. We don't import a lot of stuff, especially from China, when it comes to building houses is really not going to affect land prices much.
So I don't see that as a big issue. But they were really concerned, hey, if I buy a house, or should I wait for housing to take a massive correction. That's probably not something that we have to worry about to this point. But we do have to worry about technology, computers, those kinds of things, because that could definitely be affected by these trade wars. So just a little update, not sure where this is gonna go. Not going to not sure who's going to flinch. First. I do hope that sooner or later, cooler heads prevail, and we get back on a fair trade and a balanced system throughout the country. That can be good for everybody both in China, America, anywhere else that we import and export goods.
Alright, that's about it. You have any questions, shoot them to questions at wise money tools.com. Be happy to answer them as quick as I can. If you have any comments or thoughts, have some ideas on how this might turn out. Feel free to express those as well below. And until next week. Talk to you soon. Take care.
