It has only been two and a half years but the world is being turned on its head as President Trump reorders the relationships between countries, says the unsayable, and slays sacred cows.
He was never part of the Elite club so he really has nothing to lose. In the meantime those of us looking on are getting a masterclass in how negotiating is really done, by someone who has actually done it before. Not just studied it in business school.
Over at Daniels Trading there’s a post pointing to some rather obvious, though nonetheless ignored facts.
Conventional wisdom suggests that trade wars have no winners. This was certainly the case during the early 1930s as import-export tariffs helped to usher in an era of economic protectionism widely blamed for the Great Depression. The years of 2018 and 2019 are prompting many in the financial community to believe that history may be … Read more. Who Is Winning the U.S.-China Trade War?
thumbnail courtesy of Wikimedia.com
While people weren’t looking President Trump set the proper environment for a victory. He had President Xi and family over to Mar-A-Lago for a charm offensive to establish a “close personal friendship”. He then lowered taxes and eliminated masses of regulation, setting the US economy on fire.
Then when Trump’s trade deal was ignored by the Chinese, in came the tariffs. But who is really being hurt by the tariffs?
As President Trump says, “I have the Trump card … the American economy”. Gordon Chang agrees.
In the meantime volatility is back, and plenty of profit for traders.