Monday 15 July 2019

Beggar thy Neighbour

https://www.theguardian.com/business/live/2019/jul/15/china-growth-slow-trade-war-bank-of-england-50-note-business-live

I'm not even going to go into Trump's deliberate insulting of his female professional colleagues in the most public and racist way. The man showed long ago that he lacks any sense of human decency or empathy and this most recent crassness fits the bill.

Instead, how short term must Trump's thinking be if he counts a Chinese slowdown as some sort of victory. The global economy is, get this, interconnected and a problem for one large economy is likely to rapidly become a problem for other countries.

This is even more true of the Sino-American relationship. Economists have long feared such a slowdown could trigger a global recession. The Chinese own a large amount of US debt and despite recent diversification are a primary manufacturer for the consumer goods that Americans enjoy on a massive scale.

Trade wars only 'work' if you draw your margin for victory so widely that it includes risking total economic collapse and great suffering for petty nationalist goals.

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