Trump Folds on Trade War With China | WHAT REALLY HAPPENED


Trump Folds on Trade War With China

Today, China runs a $337 billion trade surplus with the U.S.

Despite the demagoguery, the difference in average tariff rates between the U.S. and China is just under 2%.

This is not enough to cause this structural imbalance.

That stems from our internal policies, which exacerbate the difference between labor costs here and abroad. Trump will run a $1.2 trillion deficit in 2019. The Fed will run another $600 billion in U.S. treasuries off its balance sheet.

As David Stockman points out in his latest book, Peak Trump, that’s nearly $2 trillion in new debt the market has to absorb. And it needs to do so without raising interest rates lest Trump’s budget spirals further out of control.

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