chris i disagree about trump and the tariffs.
if you take it back this whole global economic order was created at bretton woods and was basically designed to rebuild europe particularly germany and also japan so as not to repeat the ww 1 settlement which was a huge contributory factor to ww 2
by the mid 80 s germany and japan were global economic superpowers so the objectives of bretton woods and gatt and its successor wto had been met. the structures were kept in place thanks to the cold war.
seventy years on the us is still bankrolling the global economy and i think its wrong.
they were reluctant participants in ww 2 and took on the responsibility of rebuilding the global economy and succeeded in doing so at a not inconsiderable cost . the us deficits are massive and unsustainable in the long run
btw look at the reaction of merkel and the rest of the g 7 when he proposed removing all tariffs.
showed they dont want to do that because the eu is well on the right side of the tariffs at the expense of the us
everyone raves about chinese growth but how much of it has been funded by the us trade deficit
if you look at the performance of the global economy over the last decade it has clearly flat lined which in itself indicates that the whole system needs a complete overhaul.
trump is the only global leader who recognises this.
You give him way, way, way too much credit.
He doesn't understand how the concept functions.
He believes tariffs will place money in the pockets of every day Americans........
Im not going to explain again how that's idiotic.
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He is dead right
The only reason us manufacturers have outsourced to the east is cheaper labour.
By applying tariffs he is making on shore cost of production cheaper therby encouraging manufacturers to return home and hire local labour
Therby putting money into american pockets
They never think of the unintended consequences.......
How is the coal mining industry finding life right now?
How about the other fossil fuel sectors..... how about the chicken farmers who are closing down by the mega dozens.
The reason these guys are closing down?
The cost of doing local business only had quadrupled in the last 4 years and is continuing to rise.
His tariffs have had the opposite effect. Nobody is bringing jobs back, they are simply closing up shop
Look i think there has to be a readjustment of the global economy.
Of course there are going to be casualties. The best example that springs to mind is Maggie Thatcher. She realized that the 150 years of British global domination ended after ww2 and the British economy needed restructuring. She shut down all of the unproductive and unprofitable manufacturing industries and turned the economy into a financial and services based one. She was possibly fortunate in that she could use North sea oil revenue to finance the change but at the time the unions and Labour really went mad . Btw a lot of clanners were really disgusting the way they celebrated her death, accusing her of destroying the British economy. However if you look at her legacy the British economy has flourished ever since and generations owe her thanks.
Similarly if Trump is allowed to reorganize the global economy future generations will owe him
The bottom line is can anyone believe that the status quo can continue to deliver sustainable growth
The status quo is not sustainable...Chinese growth on the back of an artificially weak yuan to enable exports...see the foreign reserves accumulated by China at the expense of (especially) American jobs and trade balance...has rendered America a creditor of China through the use by China of the same foreign reserves to buy American treasuries...
The world economy and more especially banking needs a re-boot...especially fractional banking...topic for another day...
The global economy and mankind is in real trouble. Technology has done us many favours and have done a lot of heavy lifting in the economy but it is also the single biggest reason for our current woes. Companies everywhere are looking to be more competitive and this is mostly achieved by reducing the head count through greater use of technology in automation of more processes that required human intervention in the past. This is slow poison and will be counter productive in the long run as the only way that the world economy can be sustainable is through greater levels of employment to drive spending and manage the expectations of the population at large. Growing unemployment and poverty will lead to social unrest and political instability that will cause great misery and especially to the wealthy in years to come.
tn thats exactly the problem with china - the yuan is weak .how do you weaken the dollar and strengthen the yuan. answer is you cant the usd is just going to continue strengthening. so to address the bop and the debt issues you can only use tariffs. how would you reboot the banking sector
lsu agreed. too much emphasis on virtual economy and services and not enough labour based manufacturing. first world countries dont want blue collar work and the emergings are being exploited
im a full blown capitalist but the wealth gap as trending in this country especially as you say is going to lead to terrible social unrest . of let them eat cake proportions
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