Dating a banker anonymus
Ross made his career as an extraordinarily successful vulture investor in beaten-down industries such as steel and coal, domestic industries buffeted in part by regulations and high worker-costs, but also by international trade.
By the way, 7% of our exports currently go to China. The problem with unilateral trade sanctions like this is: Most experts agree that the Smoot-Hawley Tariffs of 1930 exacerbated the Great Depression worldwide, as both imports and exports from and to the United States dropped to about half previous levels.At the same time, high tariffs are unlikely to bring back manufacturing jobs.The bad news is that we pay people too much in this country and we enforce too many worker protections to make many manufacturing jobs viable here.I do worry, however, about two specific economic problems that Trump has promised to cause: Trade wars, and interference with US financial strength through the bond markets and Federal Reserve.The long-term problem with an economic crisis – besides the obvious pain and suffering – is a societal desperation that allows an authoritarian to make bold moves otherwise unavailable to him. In the arena of international trade, Trump’s “plans” – such as they are – could and would cause a worldwide trade-war and global recession.He launched his presidential campaign pledging massive 35% tariffs on our major trading partner Mexico.
He reiterated his plans many times on the campaign trail to retaliate both against Mexico, and against companies like Ford Motor that may move manufacturing jobs to Mexico.
It will take some wise financial counseling to explain to Trump why his threats do not really help the United States. Given its mystery and importance, critics on the Left and Right often seek to curb the power of the Fed.
He has not shown evidence, however, that he can take that kind of advice, or learn from it. Anything that powerful must be part of some kind of conspiracy, right?
By the way, 16% of our national exports go to Mexico.
In addition, he has threatened 45% tariffs on Chinese exports both in Republican debates and in interviews with the New York Times.
Like the Republican Party, the Democratic Party, the FBI, the Electoral College, and the media to name a few — the Fed — Trump complained, was part of an unfair conspiracy against him.