THE WAR: US vs China — Raising the Stakes!

The Word is “Reciprocity”. POTUS may like this word, but he could ask someone to get an explanation what it really means…

The tariff fight between China and the United States is getting hotter. After China has hit U.S. with $50 billion worth of tariffs, Trump threatened another $100 billion in penalties, while still denying on Twitter he is engagaged in a trade war with China…

Trump - 2018-04-06_201633.jpg

Wall Street reacts with increasingly unsettling ECG, which is not only a certain sign, but also a textbook description of a trade war.



Trump should have one advisor who could explain to him that “reciprocity” in trade, at the open market requires about equal size and strength of economy — which is not the case any more. China's economy is larger, more efficient, and is growing 7% a year. U.S. simply cannot follow. Closing the U.S. market for Chinese goods is not the “reciprocity”, it is a reason for Chinese to apply reciprocal measures. And they are ready to do it. Unfortunately for Trump, they can hit harder. Just ask economists like Desmond Lachman, a former deputy director at the IMF’s Policy Development and Review Department and Dr Rebecca Harding, economist and founder of Equant-Analytics.

And a little more on long-term effect and unintended consequences of already announced Chinese tariffs:

Duration: 3:15

But I guess this would be a natural development when you are so smart to dug up John Bolton and put him as an advisor…


e-vizitka - 2017-10-28_131026-mala.jpg

3 columns
2 columns
1 column