Trump fiddles while China leads World Trade Recovery

Bloomberg’s Tom Keene displays the performance of the renminbi against the U.S. dollar in 2017. He speaks with Carl Weinberg, chief economist at High Frequency Economics, on “Bloomberg Surveillance.”

Often appearing on Bloomberg TV, Dr. Weinberg is one of several economists who wastes no time on the ideological blather coming out of the Washington Beltway. Regardless of which of the two Tweedledee/Tweedledumb parties we’re allowed – is in power.

I think if you asked the average American college graduate about the Silk Road or the Silk Route – you’d get a profound silence. Listen to what Dr. Weinberg says in passing about the increase in trade this year. Understand that this is a startup barely in its beginning. Understand that regardless of Trump’s compounded ignorance and lies, the United States isn’t China’s biggest customer and consumer of goods exports. The European Union is. And they don’t consider his whines and wailing important enough to be anything more than a footnote to American electoral gullibility.

The Europeans, workers and investors alike do not suffer the disparity in income and distribution we have in the United States. Europeans get income – not fear and trembling – from global trade. Their trade with China is leading to greatly expanded trade for all the Euro nations with all the nations in between China’s hubs and the industrial centers of the European Union.

3 thoughts on “Trump fiddles while China leads World Trade Recovery

  1. moss says:

    The US gained a head start on the rest of the world in capital goods production and sales by the end of World War II – simply by virtue of geopolitics. And spent the next 25 years squandering the opportunity.

    Capital goods design firms, manufacturers, industrial core companies I knew of on a daily basis are no longer American firms. They were sold off. Profit taken. And no one was concerned enough to think about the next wave needed to move forward.

    Entertainment and eventually high-tech felt like it was enough. Circuses while no one was at home baking bread.

  2. Auntie says:

    “China sees new world order with oil benchmark backed by gold” Nikkei Asian Review September 1, 2017 https://asia.nikkei.com/Markets/Commodities/China-sees-new-world-order-with-oil-benchmark-backed-by-gold “China is expected shortly to launch a crude oil futures contract priced in yuan and convertible into gold in what analysts say could be a game-changer for the industry.
    The contract could become the most important Asia-based crude oil benchmark, given that China is the world’s biggest oil importer. Crude oil is usually priced in relation to Brent or West Texas Intermediate futures, both denominated in U.S. dollars.
    China’s move will allow exporters such as Russia and Iran to circumvent U.S. sanctions by trading in yuan. To further entice trade, China says the yuan will be fully convertible into gold on exchanges in Shanghai and Hong Kong.”

  3. Piaohao says:

    “China’s financial system is getting significantly more vulnerable due to high leverage, according to central bank governor Zhou Xiaochuan, who also flagged the need for deeper reforms in the world’s second-biggest economy. (11/4/17) https://www.bloomberg.com/news/articles/2017-11-04/china-s-zhou-warns-on-mounting-financial-risk-in-rare-commentary
    Latent risks are accumulating, including some that are “hidden, complex, sudden, contagious and hazardous,” even as the overall health of the financial system remains good, Zhou wrote in a lengthy article published on the People’s Bank of China’s website late Saturday. The nation should toughen regulation and let markets serve the real economy better, according to Zhou. The government should also open up financial markets by relaxing capital controls and reducing restrictions on non-Chinese financial institutions that want to operate on the mainland, he wrote.”
    See also “How China Is Tackling Dangers in Its Financial System (10/9/17) https://www.bloomberg.com/news/articles/2017-10-09/how-china-is-getting-serious-about-financial-risk-quicktake-q-a

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