McRocket
Gold Member
- Apr 4, 2018
- 5,031
- 707
- 275
- Banned
- #1
'With the trade war between the US and China re-escalating once more, investors are again casting frightened glances at declining global trade volumes, which as Bloomberg writes today, "threaten to upend the global economy’s much-anticipated rebound and could even throw its decade-long expansion into doubt if the conflict spirals out of control."
"Just as tentative signs appeared that a recovery is taking hold, trade tensions have re-emerged as a credible and significant threat to the business cycle," said Morgan Stanley's chief economist, Chetan Ahya, highlighting a “serious impact on corporate confidence" from the tariff feud.
To be sure, even before the latest trade war round, global growth and trade were already suffering, confirmed most recently by last night's dismal China economic data, which showed industrial output, retail sales and investment all sliding in April by more than economists forecast.'
Global Trade Collapsing To Depression Levels
And look when trading started to collapse...right when Trump's tariff threats/implimentations started.
So that means he is largely (though by no means entirely - hello central banks?) to blame....or at least is the major catalyst.
People told him he was nuts with these tariffs/trade war threats. That they could reverberate all over the world. But no...he didn't listen.
And now look what we might be facing?
Many say Smoot-Hawley started the Great Depression. Will Trump's protectionism be the start of the next depression?
Probably not.
The central banks of the world will come charging to the rescue - dumping HUGE sums of cheap debt onto the economies of the world and propping things up yet again...and making things just that much worse for the future to deal with.
"Just as tentative signs appeared that a recovery is taking hold, trade tensions have re-emerged as a credible and significant threat to the business cycle," said Morgan Stanley's chief economist, Chetan Ahya, highlighting a “serious impact on corporate confidence" from the tariff feud.
To be sure, even before the latest trade war round, global growth and trade were already suffering, confirmed most recently by last night's dismal China economic data, which showed industrial output, retail sales and investment all sliding in April by more than economists forecast.'
Global Trade Collapsing To Depression Levels
And look when trading started to collapse...right when Trump's tariff threats/implimentations started.
So that means he is largely (though by no means entirely - hello central banks?) to blame....or at least is the major catalyst.
People told him he was nuts with these tariffs/trade war threats. That they could reverberate all over the world. But no...he didn't listen.
And now look what we might be facing?
Many say Smoot-Hawley started the Great Depression. Will Trump's protectionism be the start of the next depression?
Probably not.
The central banks of the world will come charging to the rescue - dumping HUGE sums of cheap debt onto the economies of the world and propping things up yet again...and making things just that much worse for the future to deal with.
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