The impact that trade wars are having on the flow of billions of dollars of goods and central banks’ monetary policy around the globe appears to have jumped out of the frying pan and into a fire at the town square, as the following chart is a sign that global trade is collapsing to depression levels:
As recently as last spring and summer, tensions escalated between the U.S. and China, and the IMF expressed their concern two months ago. A few semantic swipes also appeared on both sides of the bargaining table.
China accuses U.S. of ‘blackmail’ amid reports of higher tariffs – Politico, Aug. 2018
Steve Bannon: We are in an economic war with China – CNBC International, July 2018
VIDEO,,,,,,,,,,,,,,,,,
U.S.-China trade war poses biggest risk to global stability: IMF’s Lipton… “The U.S.-China trade war poses the biggest risk to global stability and fiscal stabilization is needed to respond to economic shocks in Europe. Obviously, this is not a matter for Europe alone. The United States needs to get its fiscal house in order as well… Each EU member state should strengthen their defenses ahead of a potential downturn, including those countries that have not addressed glaring vulnerabilities, notably Italy. A serious recession could be very damaging for these countries, because they will be shown to be ill-prepared.” – Reuters, Mar. 2019
Ongoing negotiations have panicked world stock markets with episodic bouts of news-driven risk-on and risk-off volatility, magnified by automated trading and a reversal of Federal Reserve monetary policy that blunted its quantitative tightening dream, which resulted in flip-flops between a pause in policy or quantitative easing to infinity. Doves at the Fed and the POTUS have been talking about interest rate cuts in recent days.
Trump says US will win trade war if Fed cuts interest rates – CNBC, May 14
MORE,,,,,
http://www.investmentwatchblog.com/traderstef-china-you-want-a-trade-war-bring-it-on/
YET ALL OF THIS SAID,,,,,,,,,,,,the markets keep hanging on,, Truly Amazing,,,,,, it is,,,,,,,,,,,,,,,,,
Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.
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