As no doubt you are aware Our Dear Leader has been on a tear for a couple of months about trade….he has pulled out of some agreements and imposed tariffs that have started a bit of a trade war (oh joy as if the American worker did not have enough problems)
The newest proposal is the threat of the US pulling out of the WTO…of which I have written…..https://lobotero.com/2018/09/03/if-it-is-monday-it-must-be-wto/
Dear Leader has started attacking NAFTA (again) and even has some vague words about a revised NAFTA……sadly it sounds like a scam…..keep in mind that I basically agreed with Trump on NAFTA…I think it was a barbaric thing to do to American worker……that aside…I was saying a “scam”?
If the renegotiated North American Free Trade Agreement were good for working people, its content wouldn’t be hidden. Just what the Trump administration and the Mexican government of Enrique Peña Nieto have cooked up we do not know, but given the proclivities of both it is not likely to be good.
That the hurried-up deal appears to be intended to force Canada, which has the strongest regulations among the three NAFTA countries, into signing on disadvantageous terms, provides all the more reason to be skeptical. And, finally, a study of the United States Office of the Trade Representative’s “fact sheet” leaves no doubt that any new NAFTA will be a windfall for multi-national corporations, at our expense.
Trump is doing what has become his trademark style….he goes in kicks over all the furniture and then rearranges …in other words he tries to ax an agreement and then with a little success he can claim ultimate victory…..which it is not.
It is always about appearance not results.
And then there is China….you remember them right?
It is 10 years in September since Lehman Brothers went bankrupt bringing global capitalism to the point of collapse. Although the crash did not finally lead to a total meltdown, it triggered a slump of 1930s proportions and for most economies the last decade has been a lost decade of low growth, low investment, low productivity, marked by debt and deficit, with virtually no improvement in real incomes for the 90 per cent.
The stand-out story of the period has to be the continuing rise of China. Initially, the economy was also badly hit by the crisis, but China was able to recover rapidly to emerge today as a major economic power, moving steadily closer centre stage in the global order.
Keep in mind that China is our world competitor….is it really a good idea to start a trade war with them?
Something else to consider…..with all the games played by Our Dear Leader with US trade we still had a deficit……
The US trade deficit widened for the second straight month in July, reaching the highest level since February, as imports hit an all-time high. The deficit in goods with China and the European Union set records, reports the AP. The Commerce Department said Wednesday that the deficit in goods and services—the difference between what America sells and what it buys from other countries—rose to $50.1 billion in July from $45.7 billion in June. Exports slipped 1% to $211.1 billion, while imports increased 0.9% to a record $261.2 billion on increased purchases of trucks and computers. The deficit rose despite President Trump’s efforts to bring it down by renegotiating trade agreements and imposing taxes on imports.
So far, Trump’s aggressive policies have had little impact on trade numbers. The goods deficit with China rose 10% in July to a record $36.8 billion. The EU gap shot up 50% to a record $17.6 billion and with Canada nearly 58% to $3.1 billion. The July deficit with Mexico, though, plunged 25% to $5.5 billion. So far this year, the trade deficit is up 7% from January-July 2017. Trump views trade deficits as a result of bad trade deals and abusive behavior by America’s trading partners, but mainstream economists blame an economic reality that can’t be changed much by trade policy: Americans spend more than they produce, and imports fill the gap, particularly as a strong US economy encourages Americans to buy more foreign products.
Maybe things will look up next month……
This will be one of few posts of the day….I must endure about 5 to 6 hours of medical tests and doctors visits….I shall return later…..