Tag: global trade war

How “Devilish Theories” Return to America

Guest Post by Bill Bonner

POITOU, FRANCE – Yesterday, we guessed that The Donald would back down on his threat to impose a 25% tariff on Chinese goods coming into the U.S.

Not because it would be a $50 billion tax on his own base – consumers who are already living close to the edge. The president’s fans are solid. They will not desert him, even as he stabs them in the back and walks over their bodies.

Most to Lose

No, he will back down because the Chinese tariffs risk a real trade war with China. And a real trade war with the world’s biggest economy would be a disaster for the people with the most to lose – the elite, the “One Percent,” and the Deep State… including The Donald himself.

There is some $115 trillion in excess debt in the world – that is, debt above and beyond what can be comfortably supported by the real economy.

That debt is a liability to Main Street and the public. But it is an asset to the rich. As we have described in these pages before, it’s EZ credit that is the linchpin in today’s fake-money system.

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China Has Been Preparing For A Trade War For Over A Decade

Authored by Brandon Smith via Alt-Market.com,

The crash of 2008 brought with it a host of strange economic paradigms rarely if ever seen in history; paradigms which have turned normal fiscal analysis on its head. While some core fundamentals remain the same no matter what occurs, the reporting of this data has been deliberately skewed to hide the truth.

https://www.zerohedge.com/sites/default/files/inline-images/20121220_Oz.Curtain.jpg?itok=OTyPrVio

But what is the truth? Well, at bottom, the truth is that most economies around the world are far weaker than the picture governments and central banks have painted. This is especially true for the United States.

That said, one country has been pursuing an opposite strategy for many years now — meaning, it has been hiding its economic preparedness more than its weaknesses. I am of course speaking of China.

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Trump Threatens Europe: “We Will Apply A Retaliatory Tax On Their Cars”

 

This is how trade wars escalate: Trump hasn’t even officially announced the steel and aluminum import tariffs, expected to be formally unveiled this coming week, and the rhetoric is already one of World Trade War I doom and gloom.

Hours after Trump tweeted on Friday morning that “trade wars are good, and easy to win,” European Commission President Jean-Claude Juncker said the bloc is prepared to respond quickly and forcefully by targeting imports of Harley-Davidson motorbikes, Levi Strauss & Co. jeans and bourbon whiskey from the U.S.

According to some, the preliminary EU retaliation was targeted in a way that would maximize political pressure on American leaders: Harley-Davidson is based in House Speaker Paul Ryan’s home state of Wisconsin, while bourbon whiskey hails from the state of Senate Majority Leader Mitch McConnell. San Francisco-based Levi Strauss is headquartered in House Minority Leader’s Nancy Pelosi’s district.

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Trump “Overrules” Cabinet, Prepares To Unleash Global Trade War

Tyler Durden's picture
by Tyler Durden
Jun 30, 2017 7:16 AM

While one of Trump’s recurring campaign promises was that he would “punish” China and other key US trade counterparties if elected, for taking advantage of free-trade by imposing steep tariffs and duties on foreign imports to “level the playing field”, the President’s stance changed drastically after the election, U-turning following his amicable meeting with China’s president Xi Jinping in March, but mostly as a result of pressure by his ex-Goldman advisors to keep existing trade arrangements in place and not “rock the boat.”

Now, all that may be about to fall apart.

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