pErvinalia wrote: ↑Fri Apr 12, 2019 1:18 am
Forty Two wrote: ↑Thu Apr 11, 2019 12:50 pm
Scot Dutchy wrote: ↑Thu Apr 11, 2019 5:51 am
How about all the other cheeses we make? Just two of hundreds.
https://www.cnbc.com/2018/07/04/trumps- ... ong-f.html
“The real message here — and I think he’s right about this, but it’s hidden in the presentation and sound and fury — is fundamentally European macro-economic policy… is that Europe is free-riding global demand, running huge trade surpluses and nobody has really stood up credibly to that ideology until Trump."
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Nonetheless, Lonergan said it was ironic that Trump had been criticized by the “commentariat” on the details of trade tariffs, but that his wider aim to address global trade imbalances was being overlooked with too much focus on the headline-grabbing tariff threats and trade war fears.
“Look, I do not like all these tariffs, I do not like trade wars, I do not like the presentation of Trump. But when it comes down to the fundamental point of saying to policymakers in Europe, ‘Look at what you’re doing and this is not sustainable and look what happened the last time we had these imbalances,’ there is actually a fundamental point here,” Lonergan said.
He added that Europe was dominated by economies enjoying a trade surplus and had been able to take advantage of consumption in the States.
“What has happened post-euro crisis is that Europe is free-riding, it’s saying we’re going to run massive trade surpluses — Italy’s running a current account surplus now; peripheral Europe is; central and eastern Europe, which were deficit countries pre-crisis are now big surplus countries… We’re only able to run those surpluses thanks to the generosity and kindness of strangers who are willing to take in all of those goods.
“It’s a lie to say this is an amazing German export achievement — no, it isn’t, it’s because there is a consumer at the other end who’s willing to generate the demand.”
What happened to the supposed virtue of free markets?
They'd be great if Europe would drop its tariffs on US imports.
There seems to be a lot of outrage that the US has tariffs or raises them. And, a lot of argument that contradicts the outrage - that the tariffs actually just hurt the US, and tariffs don't hurt the other countries who they are supposed to hurt.
However, I haven't heard much about the European tariffs, and how they are unfair and at the same time hurt Europe, and help other countries.
The reason Trump threatens to raise tariffs and raises tariffs is to push the other countries to come to the table to agree to lower there tariffs. That way, US companies will be benefitted when exporting into those countries whose tariffs have been lowered.
Free markets are great, but we can't pretend that the markets are free when there are tariffs all over the place.
From the Financial Times -
https://www.ft.com/content/4eb97d9e-1b1 ... 50b3105d21
Cecilia Malmstrom, the EU trade chief, said that Europe wanted to work towards a zero-tariff trade deal on industrial goods with Donald Trump after both sides agreed to deepen commercial ties in July last year.
The talks were conceived by the US president and European Commission president Jean-Claude Juncker to stave off a transatlantic trade war after Mr Trump threatened to slap large tariffs on imports of European cars.
So, Trump threatens to raise taxes on Euro auto imports. Euros get pissed off (probably because they don't want to see the US hurt itself with tariffs that only serve to hurt the US...) so they start threatening the US with a trade war. "OMG! Trump is starting a trade war! He's anti-market! He's anti-trade! He's spoiling our relationship! " - but what actually happens - talks are conceived, and the EU telegraphs that it is willing to lower auto tariffs and work toward a "zero-tariff trade deal on industrial goods."
There you have it.
“When I was in college, I took a terrorism class. ... The thing that was interesting in the class was every time the professor said ‘Al Qaeda’ his shoulders went up, But you know, it is that you don’t say ‘America’ with an intensity, you don’t say ‘England’ with the intensity. You don’t say ‘the army’ with the intensity,” she continued. “... But you say these names [Al Qaeda] because you want that word to carry weight. You want it to be something.” - Ilhan Omar
