Commentary: Donald Trump is making America scary again
The more the US president deploys weapons of economic destruction, the more trust in the US is undermined, says Financial Times' Gideon Rachman.
(Updated: )
Danny Lum
The keywords from this article - aptly describe Trump :-
(1) Mafia boss - Trump indeed run US like a mafia boss - against all his trading partners.
(2) His policy of “making America scary again” - eventually the Trump administration will scare people off.
(3) Trump deploys weapons of economic destruction, the more he will undermine that trust and encourage foreigners to look for ways around America.
eg. RCEP, BRI, CPTPP etc - are trading deals to move away from US.
Trump single-handedly destroying the World Economy.
(1) Mafia boss - Trump indeed run US like a mafia boss - against all his trading partners.
(2) His policy of “making America scary again” - eventually the Trump administration will scare people off.
(3) Trump deploys weapons of economic destruction, the more he will undermine that trust and encourage foreigners to look for ways around America.
eg. RCEP, BRI, CPTPP etc - are trading deals to move away from US.
Trump single-handedly destroying the World Economy.
Like · Reply · 1m
Xavier
Trump is looking out for the interest of his country. Too many former POTUS had given far too generous trade deals to other nations, at the detriment of the USA. Americans were losing jobs left, right and centre, while the nation buckles under huge trade deficits. I do not understand why so many nations insist on their sense of entitlement, believing that the Americans should foot the bill for the prosperity of other nations. The truth is these countries need the American market more than the Americans need theirs. The world economy will not be destroyed and once everyone gets used to it after the initial turbulence and knee-jerk reactions, it will be business as usual. No logic for all these scare mongering.
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Danny Lum
Xavier -
(1) If Trump is so great - let see US voters hand him a resounding defeat in the coming US election.
(2) Biden and some other Democrats have big lead in polls against Trimp in major US states eg. Iowa, South Carolina, Pennsylvania
(3) Hopefully, the Democrats can keep the momentum and let the result do the talk.
(1) If Trump is so great - let see US voters hand him a resounding defeat in the coming US election.
(2) Biden and some other Democrats have big lead in polls against Trimp in major US states eg. Iowa, South Carolina, Pennsylvania
(3) Hopefully, the Democrats can keep the momentum and let the result do the talk.
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Danny Lum
(1) Meanwhile the rest of the World will recarve out new Global Supply chain and trade by bypassing US - so that this mafia will not hold the World by the neck.
Like · Reply · 1m
Danny Lum
Xavier -
(a) In case you sing praise about how great about US and US will not fail - look at real statistics :-
(1) US GDP is US$19 trillion - but the public debt is US$23 trillion.
A large part of the debt is finance by external creditors eg. China US$1.3 trillion, Japan US$1 trillion plus many other Countries.
US need to pay high interest to all the external creditors - and a large part of US wealth flow out of US Economy.
(2) China GDP is US$13 trillion - and its public debt is US$5 trillion.
Most of its debt are finance by internal creditors. This means the debt is domestic debt - and don't flow out of the Economy.
(3) Trump do a huge tax cut and use large debt to finance its economy - the moment creditors start selling US Treasury Bill and no longer hold US$ - US economy will implode.
(4) This will accelerate when Trump launch a big trade war against all its trading partners --- and the trading partners will start to look elsewhere for trade instead of trading with US.
(5) When this happen, the incentive for Countries to hold US$ will be dampen - and more Countries will hold yuan, yen and Euro - if the trade increase with these Countries.
(6) Then US$ will plummet, US Economy will plummet as creditors no longer want to buy US Treasury Bill and hold US$. Countries not trading so much with US will also stop holding US$.
(7) As US public debt increase but no external creditors want to lend it money, if US try to print money through quantitative easing to repay its mammoth debt ---- then US$ value will become like banana money (worthless like Venezuela).
(8) No Monetary Institutions in the World such as IMF, World Bank, ADB etc is able to bail US out from bankruptcy by lending to US to settle its US$23 trillion public debt plus annual debt interest of US$170 billion a year. (Source :- US Debt Clock)
(9) Trump is plundering US Economy ----- in case you are still very proud of him.
(a) In case you sing praise about how great about US and US will not fail - look at real statistics :-
(1) US GDP is US$19 trillion - but the public debt is US$23 trillion.
A large part of the debt is finance by external creditors eg. China US$1.3 trillion, Japan US$1 trillion plus many other Countries.
US need to pay high interest to all the external creditors - and a large part of US wealth flow out of US Economy.
(2) China GDP is US$13 trillion - and its public debt is US$5 trillion.
Most of its debt are finance by internal creditors. This means the debt is domestic debt - and don't flow out of the Economy.
(3) Trump do a huge tax cut and use large debt to finance its economy - the moment creditors start selling US Treasury Bill and no longer hold US$ - US economy will implode.
(4) This will accelerate when Trump launch a big trade war against all its trading partners --- and the trading partners will start to look elsewhere for trade instead of trading with US.
(5) When this happen, the incentive for Countries to hold US$ will be dampen - and more Countries will hold yuan, yen and Euro - if the trade increase with these Countries.
(6) Then US$ will plummet, US Economy will plummet as creditors no longer want to buy US Treasury Bill and hold US$. Countries not trading so much with US will also stop holding US$.
(7) As US public debt increase but no external creditors want to lend it money, if US try to print money through quantitative easing to repay its mammoth debt ---- then US$ value will become like banana money (worthless like Venezuela).
(8) No Monetary Institutions in the World such as IMF, World Bank, ADB etc is able to bail US out from bankruptcy by lending to US to settle its US$23 trillion public debt plus annual debt interest of US$170 billion a year. (Source :- US Debt Clock)
(9) Trump is plundering US Economy ----- in case you are still very proud of him.
Like · Reply · 1m
Xavier
Danny Lum, I am not singing praises of the USA and Trump. I am merely being objective to debunk the misleading ideas and statements brought forth against the USA and her current President.
(1) True, the USA rakes up a huge trade deficit, which is why Trump is attempting to reverse it. Exactly because of the amount the USA owes to other nations, and because the US dollar is dominant in global trade since the US market is so huge, the creditor nations cannot afford to see the USA fail. It is basically a Mexican standoff if push comes to shove.
(2) I take a pinch of salt when talking about China's GDP verse debt ratio. A gentle reminder that the USA had very encouraging numbers too before the 1990s.
(3) Back to point (1). Not going to happen.
(4) What alternate market(s) is/are there for the present US trade partners to find that is/are huge enough to replace their present trade with the USA?
(5) True, credit nations can reduce their US dollar holdings, but at the risk that US bills and bonds they hold will lose a lot of value. Revert to point (1). Besides, how much Yuan do you think national treasuries can hold?
(6) Revert to point (1).
(7) If the US dollar devalues like those of Banana Republics, God bless us all.
(8) True, IMF cannot bail USA out of its current debt situation, but do you think all the creditor nations will allow that to happen?
(9) I am not a Trump supporter nor am I proud of him. I am merely saying your prejudices against him has clouded your judgement. While Trump is far from perfect, he has got his redeeming elements, whether you like him or not.
(1) True, the USA rakes up a huge trade deficit, which is why Trump is attempting to reverse it. Exactly because of the amount the USA owes to other nations, and because the US dollar is dominant in global trade since the US market is so huge, the creditor nations cannot afford to see the USA fail. It is basically a Mexican standoff if push comes to shove.
(2) I take a pinch of salt when talking about China's GDP verse debt ratio. A gentle reminder that the USA had very encouraging numbers too before the 1990s.
(3) Back to point (1). Not going to happen.
(4) What alternate market(s) is/are there for the present US trade partners to find that is/are huge enough to replace their present trade with the USA?
(5) True, credit nations can reduce their US dollar holdings, but at the risk that US bills and bonds they hold will lose a lot of value. Revert to point (1). Besides, how much Yuan do you think national treasuries can hold?
(6) Revert to point (1).
(7) If the US dollar devalues like those of Banana Republics, God bless us all.
(8) True, IMF cannot bail USA out of its current debt situation, but do you think all the creditor nations will allow that to happen?
(9) I am not a Trump supporter nor am I proud of him. I am merely saying your prejudices against him has clouded your judgement. While Trump is far from perfect, he has got his redeeming elements, whether you like him or not.
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Danny Lum
Xavier -
(1) You think the World without US will die?
A Chinese leader said - US cause us pain - but will not kill us. The World is big enough.
(2) US trade with the World is US$4 trillion - that is why many Countries hold US $ to trade.
But the moment the World move away from US, there is no more incentive to hold US$.
(3) US GDP = US$19 trillion (but US$23 trillion debt).
EU GDP = US$21 trillion (more than US)
China GDP = US$13 trillion (with US$3 trillion reserve and US$1.3 trillion US treasury bond)
Japan GDP = US$5 trillion (with US$1 trillion US treasury bond).
(4) RCEP GDP = US$32 triilion
CPTPP = US$13.5 trillion
The rest of the World GDP = US$62 trillion GDP.
(5) You think the World without US will die?
If the World stop buying boeing planes, ford, soyabean etc - but start buying airbus, japan/korean/EU cars, etc - then US will have to start begging the World to trade with them.
(1) You think the World without US will die?
A Chinese leader said - US cause us pain - but will not kill us. The World is big enough.
(2) US trade with the World is US$4 trillion - that is why many Countries hold US $ to trade.
But the moment the World move away from US, there is no more incentive to hold US$.
(3) US GDP = US$19 trillion (but US$23 trillion debt).
EU GDP = US$21 trillion (more than US)
China GDP = US$13 trillion (with US$3 trillion reserve and US$1.3 trillion US treasury bond)
Japan GDP = US$5 trillion (with US$1 trillion US treasury bond).
(4) RCEP GDP = US$32 triilion
CPTPP = US$13.5 trillion
The rest of the World GDP = US$62 trillion GDP.
(5) You think the World without US will die?
If the World stop buying boeing planes, ford, soyabean etc - but start buying airbus, japan/korean/EU cars, etc - then US will have to start begging the World to trade with them.
Like · Reply · 1m · Edited
Danny Lum
Danny Lum
Xavier -
(1) In case you don't know - the largest trading partner with all Asia Pacific Countries --- is China (not US) - so don't think US is damn great.
(1) In case you don't know - the largest trading partner with all Asia Pacific Countries --- is China (not US) - so don't think US is damn great.
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Xavier
Danny Lum -
(1) Since you are so anti-Trump, I reason that you must be embracing globalism, right? So by you raising the question on whether the World would perish without the USA is essentially you putting your foot in your mouth. Then again, will the USA perish without the World? Exactly because the World is big enough, the USA and the World can coexist, and they need each other. Period.
(2) Thank you for pointing out that 4 trillion US dollars worth of trade is conducted between the World and the USA, so why would any country totally short US Dollars? That does not make any sense. By your reckoning, can 4-trillions-US-dollars worth of trade evaporate in an instance? You need to read up on Economics 101.
(3) and (4) Thank you for providing the numbers to back up my point. Precisely because so much US Treasury Bills and US Bonds are held by so many creditor countries, no significant trading partners of the USA will set up USA for a fall. That is Common Sense 101.
EU may have a higher combined GDP than the USA, but remember that it is a combined value of a basket of nations with different agendas. When BREXIT materialises, do you think EU will still have a larger combined GDP than the USA? My point is the USA GDP is 30 per cent of the entire World's GDP. That is not insignificant as you portray it to be.
(5) Read my point (1) again. Your assumption that the whole World would boycott US products at the drop of the hat is too simplistic. It exists only in coffeeshop talk after a couple of beers and a lot of BS. Even if that happens, resulting in the US economy shrinking and the value of the US Dollar heading deep South, what do you think will happen to all the US Treasury Notes, Bonds, stocks, assets, properties held by creditor nations?
I do know that the largest trading partner with many Asian countries is China, but so what? Are you saying that the USA is not a significant trading partner with these nations?
You are barking up the wrong tree. I have not said that the USA is so darn important and great that we will die without her presence. The fact is that we have a global economy, and the fate and fortunes of all countries are too intertwined for the picture you paint to occur out of the blue. I am merely rebutting your one-sided condemnation of the USA.
(1) Since you are so anti-Trump, I reason that you must be embracing globalism, right? So by you raising the question on whether the World would perish without the USA is essentially you putting your foot in your mouth. Then again, will the USA perish without the World? Exactly because the World is big enough, the USA and the World can coexist, and they need each other. Period.
(2) Thank you for pointing out that 4 trillion US dollars worth of trade is conducted between the World and the USA, so why would any country totally short US Dollars? That does not make any sense. By your reckoning, can 4-trillions-US-dollars worth of trade evaporate in an instance? You need to read up on Economics 101.
(3) and (4) Thank you for providing the numbers to back up my point. Precisely because so much US Treasury Bills and US Bonds are held by so many creditor countries, no significant trading partners of the USA will set up USA for a fall. That is Common Sense 101.
EU may have a higher combined GDP than the USA, but remember that it is a combined value of a basket of nations with different agendas. When BREXIT materialises, do you think EU will still have a larger combined GDP than the USA? My point is the USA GDP is 30 per cent of the entire World's GDP. That is not insignificant as you portray it to be.
(5) Read my point (1) again. Your assumption that the whole World would boycott US products at the drop of the hat is too simplistic. It exists only in coffeeshop talk after a couple of beers and a lot of BS. Even if that happens, resulting in the US economy shrinking and the value of the US Dollar heading deep South, what do you think will happen to all the US Treasury Notes, Bonds, stocks, assets, properties held by creditor nations?
I do know that the largest trading partner with many Asian countries is China, but so what? Are you saying that the USA is not a significant trading partner with these nations?
You are barking up the wrong tree. I have not said that the USA is so darn important and great that we will die without her presence. The fact is that we have a global economy, and the fate and fortunes of all countries are too intertwined for the picture you paint to occur out of the blue. I am merely rebutting your one-sided condemnation of the USA.
Danny Lum
Xavier -
(1) I am just condemning Trump and his administration that mess up the World Eocnomy.
(2) I have no problem with past US Presidents who did a great job - in coexistence with the World.
(3) If Trump win another re-election - you can be very sure that the World will make a big dent in US trade and US$ importance will greatly diminished.
(4) Many Countries have already arrange bilateral currency swap bypassing the use of US$ - the latest being China and Russia.
China has already sold hundred of billions of US treasury bonds recently.
China GDP is US$14 trillion, 400 million Chinese (more than total population of US 350 million people) are middle & upper income people with high spending power where 75% of China GDP is domestic consumption (not affected by trade).
So Trump led US trade war - will only pain China but will not kill China.
In fact, China will be driven to next high phase growth - by concentrating on innovating and developing high tech that US is trying to stop and overtake US.
(5) Singapore also have bilateral currency swap with many Countries.
(6) If RCEP is concluded (RCEP GDP = US$32 triilion) - Asia Pacific trade will grow phenomenally - notably yuan, yen etc will become more dominant over US$.
Asia Pacific has 4.6 billion people out of the world population of 6 billion people - with highest economic growth average 2 - 6% (and has one of the highest per capita income in the World).
US only has 230 million people - you think US without Asia can grow? Else US will not be so worried about China - who is slated to overtake US 10 years down the road.
In fact, 1 million China made smartphone (Huawei and other Chinese brands) - have been submitted to Huawei to test on Huawei O/S HongMeng (to replace Android) and using HiSilicon chips ---- to target 1.4 billion China consumers. How can Trump-led US fight China's mammoth market?
Google in fact complain about Trump's mis-step - as Huawei will become the next tiger to bite at Google Android market.
(7) Simply said - the longer Trump is around - the less the World will deal with US.
Unless the next sensible President of US comes around - and do damage control with the World ---- else one US cannot dominate the World --- no empire throughout the history of mankind can dominate the World ----- and definitely not this Trump-led US.
(1) I am just condemning Trump and his administration that mess up the World Eocnomy.
(2) I have no problem with past US Presidents who did a great job - in coexistence with the World.
(3) If Trump win another re-election - you can be very sure that the World will make a big dent in US trade and US$ importance will greatly diminished.
(4) Many Countries have already arrange bilateral currency swap bypassing the use of US$ - the latest being China and Russia.
China has already sold hundred of billions of US treasury bonds recently.
China GDP is US$14 trillion, 400 million Chinese (more than total population of US 350 million people) are middle & upper income people with high spending power where 75% of China GDP is domestic consumption (not affected by trade).
So Trump led US trade war - will only pain China but will not kill China.
In fact, China will be driven to next high phase growth - by concentrating on innovating and developing high tech that US is trying to stop and overtake US.
(5) Singapore also have bilateral currency swap with many Countries.
(6) If RCEP is concluded (RCEP GDP = US$32 triilion) - Asia Pacific trade will grow phenomenally - notably yuan, yen etc will become more dominant over US$.
Asia Pacific has 4.6 billion people out of the world population of 6 billion people - with highest economic growth average 2 - 6% (and has one of the highest per capita income in the World).
US only has 230 million people - you think US without Asia can grow? Else US will not be so worried about China - who is slated to overtake US 10 years down the road.
In fact, 1 million China made smartphone (Huawei and other Chinese brands) - have been submitted to Huawei to test on Huawei O/S HongMeng (to replace Android) and using HiSilicon chips ---- to target 1.4 billion China consumers. How can Trump-led US fight China's mammoth market?
Google in fact complain about Trump's mis-step - as Huawei will become the next tiger to bite at Google Android market.
(7) Simply said - the longer Trump is around - the less the World will deal with US.
Unless the next sensible President of US comes around - and do damage control with the World ---- else one US cannot dominate the World --- no empire throughout the history of mankind can dominate the World ----- and definitely not this Trump-led US.
Like · Reply · 1m
Xavier
Danny Lum-
(1) You have no concrete proof that Trump has messed up the World Economy. Are you suffering from great financial hardship now because of Trump's policies?
(2) The past four Presidents: the two Bushes, Clinton and Obama had all racked up deficits and granted generous trade deals to other nations at the expense of US interest.
Trump will rack up a deficit too, but he has at the very least brought jobs back to the USA. Unemplyment numbers are down and growth numbers are up. I suppose that in your narrow view is a job very badly done.
(3) No one knows who will win the next Presidential election, but I find your analysis flawed.
(4) and (5) Until those bilateral currency swaps can generate the necessary volume, US dollars still take centre stage. True, the sway that the US dollar used to command has lessened, it does not change the fact that no creditor country wants the US dollar to greatly depreciate. You do by now know why, right? You reckon Singapore can do without a significant holding of the US dollar in her foreign currency reserve basket?
(6) I am of the opinion China economy will overtake the US economy in due course, but that does not diminish the importance of the US market to Asia. The USA has reasons to worry about the economic emergence of China in her competition to maintain hegemony in Asia-Pacific. Similary, China has ample reasons to keep an eye on the health of the US economy. A downward spiral of the US economy will hurt China.
(7) Despite the amount of concern displayed by many countries over the policies of the Trump administration, in the final analysis, business must go on. Until these countries can transfer the output of their production capacity from the US market into other markets that can absorb it, these countries will continue to trade with the USA, be the POTUS Trump or otherwise. Trump's main focus is not to attempt to dominate other countries through his Administration. Take a much closer study and you will realise that Trump is more interested in exerting his influence inwards rather than ouwards. You have totally misread his intentions.
(1) You have no concrete proof that Trump has messed up the World Economy. Are you suffering from great financial hardship now because of Trump's policies?
(2) The past four Presidents: the two Bushes, Clinton and Obama had all racked up deficits and granted generous trade deals to other nations at the expense of US interest.
Trump will rack up a deficit too, but he has at the very least brought jobs back to the USA. Unemplyment numbers are down and growth numbers are up. I suppose that in your narrow view is a job very badly done.
(3) No one knows who will win the next Presidential election, but I find your analysis flawed.
(4) and (5) Until those bilateral currency swaps can generate the necessary volume, US dollars still take centre stage. True, the sway that the US dollar used to command has lessened, it does not change the fact that no creditor country wants the US dollar to greatly depreciate. You do by now know why, right? You reckon Singapore can do without a significant holding of the US dollar in her foreign currency reserve basket?
(6) I am of the opinion China economy will overtake the US economy in due course, but that does not diminish the importance of the US market to Asia. The USA has reasons to worry about the economic emergence of China in her competition to maintain hegemony in Asia-Pacific. Similary, China has ample reasons to keep an eye on the health of the US economy. A downward spiral of the US economy will hurt China.
(7) Despite the amount of concern displayed by many countries over the policies of the Trump administration, in the final analysis, business must go on. Until these countries can transfer the output of their production capacity from the US market into other markets that can absorb it, these countries will continue to trade with the USA, be the POTUS Trump or otherwise. Trump's main focus is not to attempt to dominate other countries through his Administration. Take a much closer study and you will realise that Trump is more interested in exerting his influence inwards rather than ouwards. You have totally misread his intentions.
Danny Lum
Xavier -
(1) I suggest you read up fiscal deficit, trade deficit, "boom and bust", "economies of scale", "Circular flow of income", "monetary policy" and "fiscal policy", "domestic economy" and "external economy" ---- before you continue discussion.
(2) Both Trump and yourself have not fully understand the mechanics of Macroeconomies.
(3) Trump is now in the period of "boom and bust" - cyclical economic boom and bust (that have plagued the World every 5 to 10 years eg. US sub-prime crisis, asian financial crisis etc) - based on unsound economic fundamental (that Clinton and Obama - had rectified). Trump is messing up the US economy as well as the Global Economy up all over again.
(4) The odds of a US recession by next year have increased sharply, with mounting protectionism continuing to pose the greatest economic threat, according to a business economic survey.
Increased trade protectionism is considered the primary downside risk to growth by a majority of respondents, followed by financial market strains and a global growth slowdown.
The panelists put the odds at 60 per cent for a US recession before the end of 2020.
The trade war wipe out US$1 trillion in the Global market.
These are the direct outcome of Trump messing up the Global Economy where many Economists attest it to Trump's policies - devoid of economic fundamental.
(5) I will end my discussion here. No point going into lenghty discussion with you
(1) I suggest you read up fiscal deficit, trade deficit, "boom and bust", "economies of scale", "Circular flow of income", "monetary policy" and "fiscal policy", "domestic economy" and "external economy" ---- before you continue discussion.
(2) Both Trump and yourself have not fully understand the mechanics of Macroeconomies.
(3) Trump is now in the period of "boom and bust" - cyclical economic boom and bust (that have plagued the World every 5 to 10 years eg. US sub-prime crisis, asian financial crisis etc) - based on unsound economic fundamental (that Clinton and Obama - had rectified). Trump is messing up the US economy as well as the Global Economy up all over again.
(4) The odds of a US recession by next year have increased sharply, with mounting protectionism continuing to pose the greatest economic threat, according to a business economic survey.
Increased trade protectionism is considered the primary downside risk to growth by a majority of respondents, followed by financial market strains and a global growth slowdown.
The panelists put the odds at 60 per cent for a US recession before the end of 2020.
The trade war wipe out US$1 trillion in the Global market.
These are the direct outcome of Trump messing up the Global Economy where many Economists attest it to Trump's policies - devoid of economic fundamental.
(5) I will end my discussion here. No point going into lenghty discussion with you
Like · Reply · 1m
Xavier
Danny Lum
(1) I read the same things you do, the difference being that I am not clouding my understanding with prejudice. Does Trump have many faults? Yes, he does, but so do the Bushes, Clinton and Obama.
Regrettably, your true grasp of economics is either shallow or down right non-existent despite you rattling off high-sounding economics nomenclature. Perhaps you need to reread Economics 101 as I have suggested earlier?
(2) I admit I do not fully understand the application of the theories in the mechanics of Macroeconomics to the real world. No one does. It would be laughable if you claim you do.
Trump is a billionaire businessman and hence has a working understanding on how business works as compared to Clinton and Obama, who are mere politicians. Trump is better aware than you on how he can employ his power in the White House to reverse the rot and damage done by the Bushes, Clinton and especially Obama in trade policies. Trump has the moolah to prove his credentials, do you?
(3) How had Clinton and Obama rectified the US economy? By ramping up deficit while causing countless of Americans to lose jobs? Trump survived the US sub-prime crisis and the Asian financial crisis by retaining his immense wealth and keeping his business empire afloat, did he not? So according to your dim view, that kind of achievement is gravely underperforming? Really?
Trump has brought jobs back to the USA to strengthen the ability of the USA to compete in world trade. Unemployment numbers tumble down while growth numbers go up, so that is your idea of messing up the US economy? I strongly suggest you lay off CNN and CNBC and start using common sense.
(4) Your dependence on quoting from surveys has been found wanting. May I remind you again that in 2016, almost every survey had predicted a landslide victory for Hillary, and who is the one sitting in the White House right now?
You talk about how bad trade protectionism is for the world and the USA, yet you have been advocating isolating the USA from the rest of the world? Make up your mind.
(5) I am very sure you will have something else to say. You just cannot resist it.
(1) I read the same things you do, the difference being that I am not clouding my understanding with prejudice. Does Trump have many faults? Yes, he does, but so do the Bushes, Clinton and Obama.
Regrettably, your true grasp of economics is either shallow or down right non-existent despite you rattling off high-sounding economics nomenclature. Perhaps you need to reread Economics 101 as I have suggested earlier?
(2) I admit I do not fully understand the application of the theories in the mechanics of Macroeconomics to the real world. No one does. It would be laughable if you claim you do.
Trump is a billionaire businessman and hence has a working understanding on how business works as compared to Clinton and Obama, who are mere politicians. Trump is better aware than you on how he can employ his power in the White House to reverse the rot and damage done by the Bushes, Clinton and especially Obama in trade policies. Trump has the moolah to prove his credentials, do you?
(3) How had Clinton and Obama rectified the US economy? By ramping up deficit while causing countless of Americans to lose jobs? Trump survived the US sub-prime crisis and the Asian financial crisis by retaining his immense wealth and keeping his business empire afloat, did he not? So according to your dim view, that kind of achievement is gravely underperforming? Really?
Trump has brought jobs back to the USA to strengthen the ability of the USA to compete in world trade. Unemployment numbers tumble down while growth numbers go up, so that is your idea of messing up the US economy? I strongly suggest you lay off CNN and CNBC and start using common sense.
(4) Your dependence on quoting from surveys has been found wanting. May I remind you again that in 2016, almost every survey had predicted a landslide victory for Hillary, and who is the one sitting in the White House right now?
You talk about how bad trade protectionism is for the world and the USA, yet you have been advocating isolating the USA from the rest of the world? Make up your mind.
(5) I am very sure you will have something else to say. You just cannot resist it.
Swee Meng Ling
So many exchanges I can't follow. USA problems are their own doing, they have wasted so much resources on wars. They spend more than they earn. Externalising your problems and blaming others are easy ways to fool the layman and half-pass 6 people. Globalization under unprecedented attack by USA, maybe they are feeling others are benefiting more than them, SGP shall be the biggest looser.
Like · Reply · 2h
Danny Lum
Swee Meng Ling =
(1) Yes you have nail the US problem - spending more than they can afford.
US debt finance by spending future money through loans ---- are not sustainable like Greece - leading it to bankrupt and need IMF to bail it out.
US economy is too big and no World institutions can bail it out.
If a Country is too difficult to grasp - let it scale down to running a Company.
If a Company borrow too much money from banks to sustain their working capital or investment --- servicing the debt interest will kill them eventually like Hyflux.
(2) Trump fail to understand the "principle of trade - division of labour and economies of scale" --- where their trade US$4 trillion - are sourcing from the cheapest input (from external sources) to ensure lowest production cost - to sustain US$15 trillion of their domestic economy.
By forcing tariff against its trading partners and enforce so call "balance trade" ----- defy the economic fundamental of trade.
US trade deficit against the World is only US$980 billion versus the GDP of US$19 trillion it generates - but Trump make a hue and cry over the trade deficit (which is a fraction of its GDP) -- that will disrupt its huge domestic economy when tariff and disrupt its production input --- will cause impact to its internal economy --- causing US recession.
(3) US economy growth is not because of Trump - it is because of Obama that has bring about recovery from sub-prime crisis cause by Bush - and through prudent fiscal and monetary policy bring about a healthy economic recovery where Trump inherited. Obama has put a kept to ensure it cut government spendings to prevent the US debt from escalating.
(4) Trump defy the controlling of debt - by try to further boost the Economy by cutting tax and ballooning the US debt from US$19 trillion to US$23 trillion and the debt interest now run into hundred of billions of dollars every year.
When bringing all this down to running a company - the company is a highly debt leverage company - when the revenue (is disrupted) -- trade disrupted, internal economy disrupted due to import input disrupted, high production cost, lower consumption due to imported inflation and poor fiscal budget (due to high debt - sustain by creditors only) ----- which is very close to bankrupt.
This is the financial mess, supply chain mess and the mess that he has cause to external customer relationship as well as lowering internal customer affordability due to high price (high tariff and high production cost).
This is the simple mechanics of Macroeconomics - where Trump fail to understand.
(1) Yes you have nail the US problem - spending more than they can afford.
US debt finance by spending future money through loans ---- are not sustainable like Greece - leading it to bankrupt and need IMF to bail it out.
US economy is too big and no World institutions can bail it out.
If a Country is too difficult to grasp - let it scale down to running a Company.
If a Company borrow too much money from banks to sustain their working capital or investment --- servicing the debt interest will kill them eventually like Hyflux.
(2) Trump fail to understand the "principle of trade - division of labour and economies of scale" --- where their trade US$4 trillion - are sourcing from the cheapest input (from external sources) to ensure lowest production cost - to sustain US$15 trillion of their domestic economy.
By forcing tariff against its trading partners and enforce so call "balance trade" ----- defy the economic fundamental of trade.
US trade deficit against the World is only US$980 billion versus the GDP of US$19 trillion it generates - but Trump make a hue and cry over the trade deficit (which is a fraction of its GDP) -- that will disrupt its huge domestic economy when tariff and disrupt its production input --- will cause impact to its internal economy --- causing US recession.
(3) US economy growth is not because of Trump - it is because of Obama that has bring about recovery from sub-prime crisis cause by Bush - and through prudent fiscal and monetary policy bring about a healthy economic recovery where Trump inherited. Obama has put a kept to ensure it cut government spendings to prevent the US debt from escalating.
(4) Trump defy the controlling of debt - by try to further boost the Economy by cutting tax and ballooning the US debt from US$19 trillion to US$23 trillion and the debt interest now run into hundred of billions of dollars every year.
When bringing all this down to running a company - the company is a highly debt leverage company - when the revenue (is disrupted) -- trade disrupted, internal economy disrupted due to import input disrupted, high production cost, lower consumption due to imported inflation and poor fiscal budget (due to high debt - sustain by creditors only) ----- which is very close to bankrupt.
This is the financial mess, supply chain mess and the mess that he has cause to external customer relationship as well as lowering internal customer affordability due to high price (high tariff and high production cost).
This is the simple mechanics of Macroeconomics - where Trump fail to understand.
Like · Reply · 1m
Sam Long
Xavier who take who for granted, the american uses cheap labour from 3rd world country to manufacture their products for their companies hugh profit
This is what you call
" for granted " ???
If this is so then the american they themself are to be blame not china, not vietnam not thailand not taiwan.
So now when this moron Duck president
Comes along and start the blame game
Why this donald duck dont take a serious look at his own back yard before making any idiotic statement
Not forgetting any statement that comes out from a statement must be credible and impartial
This is what you call
" for granted " ???
If this is so then the american they themself are to be blame not china, not vietnam not thailand not taiwan.
So now when this moron Duck president
Comes along and start the blame game
Why this donald duck dont take a serious look at his own back yard before making any idiotic statement
Not forgetting any statement that comes out from a statement must be credible and impartial
Sam Long
Xavier sorry i disagree with you,
The american has taken everything for granted, by outsourcing all their manufacturing and consumer sector to 3rd world countries
Only to reimport their product with amake in america stamp.
In actual fact the american has lost their leadership in innovation, to china
And at present china is having the upper hand in everything that the mafia trump is putting a tarif on .
Imagine china, vietnam , indonesia ,taiwan stop making stuff for america what happen to their economy??
Either a 25% inflation
Or a recession.
Dont ever think the american are so great and powerful as they thought 30years ago.
The american has taken everything for granted, by outsourcing all their manufacturing and consumer sector to 3rd world countries
Only to reimport their product with amake in america stamp.
In actual fact the american has lost their leadership in innovation, to china
And at present china is having the upper hand in everything that the mafia trump is putting a tarif on .
Imagine china, vietnam , indonesia ,taiwan stop making stuff for america what happen to their economy??
Either a 25% inflation
Or a recession.
Dont ever think the american are so great and powerful as they thought 30years ago.
Xavier
Sam Long, everyone takes everyone else for granted, and not just the Americans. The liberal economic and trade policies of previous administrations made it easy for American companies to outsource production overseas and to import those products home. That builds up the trade deficit that undermines the USA. Do not forget that the USA only started to run trade deficit in the late 1990s. Also, you are incorrect to state that the USA has lost the innovation leadership to China when China is still desperate to close the technology gap through industrial espionage.
The USA may not be as dominant as it was 30 years ago, but it is still a country strong enough to make other nations sit up and pay attention when the so-called "mafia boss" makes a statement of intent.
The USA may not be as dominant as it was 30 years ago, but it is still a country strong enough to make other nations sit up and pay attention when the so-called "mafia boss" makes a statement of intent.
Sam Long
Why are the american society so stupid to allow a gangster / mafia / uneducated moron run america to make america stupid again ,
Well that all the american chosen a mafia to run your country , good luck to you
Well that all the american chosen a mafia to run your country , good luck to you
Xavier
Give credit when credit is due. Trump may not be the most savoury person to run the highest office in the White House, but name me someone who is. Trump is trying to fulfil his promises to the voters who put him in office, and he has accomplished quite a few things. The numbers for the economy is looking better than the Bush-Clinton-Obama stretch, so the initial signs are that Trump's "dictatorial" policies are working.
To blindly call Trump a "gangster" and to label him " mafia / uneducated " when he sits on a sizable business empire is misguided.
To blindly call Trump a "gangster" and to label him " mafia / uneducated " when he sits on a sizable business empire is misguided.
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