Any country which has large trade deficits holds all the cards in a trade war.
Posted on 08/27/2018 11:35:39 AM PDT by 2ndDivisionVet
Economist Mohamed El-Erian said Monday there's a 60 percent chance that President Donald Trump's hard line with China and Europe yields "fairer trade" for the U.S.
On CNBC's "Squawk Box," the chief economic advisor at Allianz predicted a 15 percent chance that Trump's approach would result in a "Reagan moment" in trade, especially with China. It would be similar to Ronald Reagan's tough stance against the Soviet Union during the Cold War.
"That would transform the landscape," El-Erian said. Reagan also engaged in aggressive trade policies, including quotas on Japaneses cars. Some analysts say the policies were mixed.
El-Erian gave a 25 percent chance that Trump's trade moves would spark a global trade war.
Trump first proposed tariffs in March to correct what he deemed were unfair trading practices — moves that were met with retaliatory measures from the European Union, Canada, Mexico and China....
(Excerpt) Read more at cnbc.com ...
I am amazed that CNBC is allowed by it’s corporate parent to report the news in a fair, balanced and reasonably objective fashion. It’s hard to believe that they are the sister network to MSNBC.
The key is ‘financially balanced’ trade.
I don’t expect Communist China or the European Union to be fair.
The traditional US/Canadian motor vehicle scheme of my youth should go worldwide.
I would have basic construction goods, i.e. those capable of being used in permitted construction, except for hand tools, be made in the US, for quick economic recoveries.
Any country which has large trade deficits holds all the cards in a trade war.
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