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Trump’s trade war a ‘symptom of paranoid delusions’

Trump’s protectionism is therefore protecting consumers and investors from their confidence in the stability of the market

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US president Donald Trump initiated, then backed off, then resumed, an ongoing trade war with China over its alleged theft of technology and intellectual property, as well as the trade deficit between China and the US. In Trump’s mind, applying pressure on the Chinese through economic tariffs can spur the Chinese to be more ‘fair’.

Trump doesn’t seem to understand, however, that much of what Americans buy is manufactured in China and then exported to America, meaning that Trump’s ‘pressure campaign’ stands to increase the cost of doing business and therefore increase the cost of many of the products which his own constituents purchase.

For this reason, some Chinese media describes Trump’s brand of protectionism as a form of ‘paranoid delusions’, which will come back to bite hits own constituents. Trump’s protectionism is therefore protecting consumers and investors from their confidence in the stability of the market, and in the purchasing power of the USD, of which it will take more to purchase goods which Americans buy and which are largely Chinese produced.

Reuters reports:

BEIJING/SHANGHAI (Reuters) – U.S. protectionism is self-defeating and a “symptom of paranoid delusions” that must not distract China from its path to modernization, Chinese media said on Friday as Beijing kept up with its war of words with Washington while markets wilted.

President Donald Trump threatened on Monday to hit $200 billion of Chinese imports with 10 percent tariffs if China retaliates against his previous targeting of $50 billion in imports.

Investor fears of a full-blown trade war have weighed on markets, including Chinese shares, which posted their worst weekly loss since early February. Even ordinary Chinese people aired their unhappiness on social media.

China’s commerce ministry accused the United States on Thursday of being “capricious” over trade issues and warned that the interests of U.S. workers and farmers would ultimately be hurt, vowing to hit back with “quantitative” and “qualitative” measures.

The official China Daily said in an editorial the United States had failed to understand that the business it does with China supported millions of American jobs and that the U.S. approach was self-defeating.

The English-language newspaper cited research by the Rhodium Group saying Chinese investment in the United States declined 92 percent to $1.8 billion in the first five months of the year, its lowest level in seven years.

“The woes the administration is inflicting on Chinese companies do not simply translate into boons for U.S. enterprises and the U.S. economy,” it said in an editorial headlined “Protectionism symptom of paranoid delusions”.

“The fast-shrinking Chinese investment in the U.S. reflects the damage being done to China-U.S.-trade relations … by the trade crusade of Trump and his trade hawks,” it said.

The U.S. administration on Tuesday issued a report about how Chinese policies, and what it described as China’s economic aggression, were threatening the technologies and intellectual property of not just the United States but of the world.

While the White House report did not go beyond what the U.S. has said previously – that China engages in theft of technologies and intellectual property (IP) – it did not help to soothe tension. China has repeatedly denied accusations of IP theft.

U.S. FIRMS
The 30-stock Dow Jones Industrial Average slumped for an eighth consecutive session on Thursday as shares including Caterpillar Inc and Boeing Co wilted.

Big U.S. manufacturers and automakers were also under pressure after Germany’s Daimler cut its 2018 profit forecast and BMW said it was looking at “strategic options” due to the Sino-U.S. trade war.

Shares of Apple Inc, whose iPhones are assembled in China by Foxconn, also declined.

Foxconn Chairman Terry Gou said on Friday the U.S.-China trade war was the Taiwan company’s biggest challenge.

“What they are fighting is not really a trade war, it’s a tech war. A tech war is also a manufacturing war,” Gou said.

A Sino-U.S. trade war could disrupt supply chains for the technology and auto industries – sectors heavily reliant on outsourced components such as those supplied by Foxconn – and derail growth for the global economy, analysts say.

Uncertainty over how the tariff war would unfold in the near term is also starting to move commercial decisions in the energy sector.

Industry sources told Reuters that Chinese oil buyers will keep taking crude from the United States through September, but plan to cut future purchases to avoid a likely import tariff.

China has put U.S. energy products including crude and refined products on lists of goods that it will hit with import taxes. But no activation date has been specified for this cluster of products yet.

‘TUMBLING’ INDEX
Shares in Shanghai dropped 4.4 percent for the week, while China’s blue-chip CSI300 index fell 3.8 percent.

Hong Kong’s Hang Seng index shed 3.2 percent for the week, its poorest weekly showing since late March.

The share losses have prompted sarcastic posts in China’s social media, while others compared the falling stocks to China’s 2015 market crash.

“The tumbling Shanghai Composite index must be China’s so-called quantitative and qualitative counter-measures,” one social media user mused.

Not helping sentiment, the yuan extended its decline against the dollar this week, falling to its lowest in more than five months on Friday.

“Chinese exports are now contained, domestic demand has long been weighed by soaring home prices, and the yuan will depreciate, so everyone, hurry up and convert to U.S. dollars,” one social media user quipped.

The Global Times, a tabloid published by the ruling Communist Party’s official People’s Daily, said in an editorial China needed to be realistic about how it could handle the United States and look at other strategies.

“The U.S. has the upper hand over China in technology, defense and international influence, and therefore the country will continue to have a strategic initiative over Beijing for the foreseeable future,” it said.

“As long as China remains clear-minded in strategy, level-headed in its U.S. policy, and avoids a full-fledged geopolitical competition or a strategic clash against the U.S., China will be able to withstand U.S. pressure. In other words, China should focus on its domestic affairs.”

China should keep promoting its own economic development and ensure its growth exceeds that of the United States in both quantity and quality, the paper said.

“As long as China can effectively utilize its successful policies and experiences accumulated since the reform and opening up, and avoid subversive mistakes, the country will see robust momentum for development,” the Global Times said.

China got its economic boom largely because of American corporations’ desire to decrease their expenses by conducting their production in an environment of relaxed regulations and depressed wages, which is a large part of what China has to offer American firms.

Trump’s tariffs, therefore, aren’t as much of a pressure applied to the Chinese as it is to American firms producing their goods in China and shipping them back to America to be sold to the American consumer.

These tariffs increase the expenses which these corporations will bear, which, by extension, the American consumer will bear. Ergo, Trump’s pressure campaign, via tariffs and eliminated international trade participation agreements, isn’t enough to incentivize those companies to return their production to America, at least not as long as it’s cheaper to produce their products elsewhere and as long as they can pass the expense of Trump’s tariffs on to the consumer. In the end, Trump is damaging a world market system which America built to benefit America, and America will realize the effects of market pressures applied by the president who they elected to relieve their economic concerns.

 

 

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DenLilleAbeJackJohn MasonAndré De KoningDidierF Recent comment authors
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DenLilleAbe
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DenLilleAbe

320 million American citizens cant be wrong! They put him the the WH. Everything else is fake news. Jobs will return in millions, healthcare will be free and all the nasty Mexicans and Canadians will have to go home, as will the Chinese and Indians and some other ones too.
Everything will be fine!
Some people on this earth is in for a rude awakening, hehe!

Jack
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Jack

A load of cobblers. He is totally right and knows exactly what should be done to revers the incredibly dreadful situation inherited after previous administration.

André De Koning
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André De Koning

In psychopathology and psycho-dynamic theory we call it “paranoid defensiveness”, not really “delusion” (which implies psychosis). Trump uses narcissistic psychic defenses, but indeed it always leads to trouble for the person and those who suffer the impact of their power as it is all self-defeating rather than constructiveness. On the other hand, he also has a healthier side and this might come through in terms of his wish to make less war and look for peaceful solutions. He also has the strength to counter the deep state for which one would need sufficient gratification, so that is useful in the… Read more »

John Mason
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John Mason

US is asking for it so why doesn’t Russia or China or whoever do the world a favour and put that useless nation out of its’ misery. May as well do it now, going to happen sooner or later but the sooner the better. No one wants, cares or even likes the US and they won’t be missed.

DidierF
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DidierF

The free market system failed the US.

Terry Ross
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Terry Ross

US tariff policy , by needlessly increasing the imported price to US consumers of US goods produced in China, bears some similarity to the nonsensical decision of Ukrainians to needlessly hike the cost of Russian gas by buying it from reselling countries.

Bill Spence
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Bill Spence

Trump cannot direct corporations to start producing the products from China that he wants to stop. Trump must restart US manufacturing but he lacks power. The US political system is a derelict in need of rebirth owing to the archaic Constitution.

Tariffs will not do the job.

Tommy Jensen
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Tommy Jensen

As American I need to tell you guys the party is over. The days you could suck America dry is finished. Whining, howling and barking, yes we know it hurts when you have to pay for what you filled in your basket.

Vince Dhimos
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Vince Dhimos

And the tragedy is that none of this trade war is based on economics, it is all politics: http://www.newsilkstrategies.com/news–analysis/todays-america-politics-trumps-economics

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James Woods Suspended From Twitter Over Satirical Meme That Could “Impact An Election”

James Woods crushes Jack Dorsey: “You are a coward, @Jack.”

Alex Christoforou

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Via Zerohedge


Outspoken conservative actor James Woods was suspended from posting to Twitter over a two-month-old satirical meme which very clearly parodies a Democratic advertisement campaign. While the actor’s tweets are still visible, he is unable to post new content.

The offending tweet from July 20, features three millennial-aged men with “nu-male smiles” and text that reads “We’re making a Woman’s Vote Worth more by staying home.” Above it, Woods writes “Pretty scary that there is a distinct possibility this could be real. Not likely, but in this day and age of absolute liberal insanity, it is at least possible.”

According to screenshots provided by an associate of Woods’, Twitter directed the actor to delete the post on the grounds that it contained “text and imagery that has the potential to be misleading in a way that could impact an election.

In other words, James Woods, who has approximately 1.72 million followers, was suspended because liberals who don’t identify as women might actually take the meme seriously and not vote. 

In a statement released through associate Sara Miller, Woods said “You are a coward, @Jack,” referring to Twitter CEO Jack Dorsey. “There is no free speech for Conservatives on @Twitter.

Earlier this month, Woods opined on the mass-platform ban of Alex Jones, tweeting: ““I’ve never read Alex Jones nor watched any of his video presence on the internet. A friend told me he was an extremist. Believe me that I know nothing about him. That said, I think banning him from the internet is a slippery slope. This is the beginning of real fascism. Trust me.”

Nu-males everywhere non-threateningly smirk at Woods’ bad fortune…

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Another witness named by Ford becomes third person to deny being at party

A woman believed to have been one of five people at a party 35 years ago where Ford claims she was assaulted by Kavanaugh is now the fourth person to deny being at any such party.

The Duran

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Via The Washington Examiner


A witness, reportedly named by Christine Blasey Ford as one of the people at the high school party where Supreme Court nominee Brett Kavanaugh allegedly sexually assaulted her, told the Senate Judiciary Committee on Saturday she was not there.

The attorney for Leland Ingham Keyser told the Senate Judiciary Committee that Keyser does not remember being at the party Ford described as the location of the alleged assault.

“Ms. Keyser does not know Mr. Kavanaugh and she has no recollection of ever being at a party or gathering where he was present, with, or without, Dr. Ford,” Keyser said in the statement. CNN reported Keyser is a lifelong friend of Ford’s.

Keyser, whom the New York Times reported is one of the people Ford named as being in attendance at the party, is the third witness who has denied knowing about the alleged assault. Mark Judge and Patrick Smyth said earlier this week they did not remember the party in question.

Kavanaugh has denied Ford’s allegation.

The news comes after Ford, through her attorneys, tentatively agreed to testify on Thursday, after days of negotiations over the timing and conditions of her

Committee chairman Sen. Chuck Grassley, R-Iowa, had repeatedly extended deadlines set for Ford’s team on the decision, including three on Friday and one at 2:30 p.m. Saturday. Grassley threatened to proceed with a committee vote on Kavanaugh’s nomination Monday if he did not hear from Ford.

“Five times now we [have] granted extension for Dr Ford to decide if she wants to proceed [with] her desire stated one [week] ago that she wants to tell senate her story,” Grassley tweeted Friday. “Dr Ford if u changed ur mind say so so we can move on I want to hear ur testimony. Come to us or we to u.”

The extended discussions have been labeled a delaying tactic by some Republicans.

Ford’s attorneys and Grassley’s aides will reportedly continue negotiations Sunday on the details of the conditions of Ford’s testimony, per the New York Times.

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Was NYT Story About Rosenstein ‘Coup Attempt’ A Setup?

The New York Times is reporting that Rod Rosenstein pushed a plan to record President Trump and invoke the 25th Amendment to remove Trump from office.

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Via Zerohedge


Is the FBI trying to goad President Trump into firing the man in charge of supervising the Mueller probe? That’s what Sean Hannity and a handful of  Trump’s Congressional allies think.

According to a report in Politico, Republicans in Congress are approaching a story about Deputy Attorney General Rod Rosenstein attempting to organize a palace coup with extreme caution, despite having twice nearly gathered the votes to remove him in the recent past.

On Friday, the NYT reported a bombshell story alleging that Rosenstein had tried to recruit administration officials to secretly tape conversations with the president in order to help justify removing Trump under the 25th amendment. Rosenstein vehemently denied the story, which was largely based on confidential memos written by former Deputy FBI Director Andrew McCabe. And others who were reportedly in attendance at meeting between McCabe and Rosenstein said the Deputy AG was being “sarcastic” when he suggested that the president be taped.

Meanwhile, Trump allies including Ohio Congressman Jim Jordan and Florida Congressman Matt Gaetz are saying that the story should be treated with suspicion. Jordan and Freedom Caucus leader Mark Meadows once filed articles of impeachment against Rosenstein. But now, both Meadows and Jordan intend to proceed with caution, telling Politico that he would like to see the memos that the story was based on.

House Freedom Caucus leaders Mark Meadows and Jim Jordan, who led a charge to impeach Rosenstein this summer, have said they want to hear from Rosenstein and see documents allegedly describing the comments before they decide what to do.That’s awarded Rosenstein a courtesy they’ve never given him in the past.

“I think Rod needs to come before Congress this week and explain under oath what exactly he said and didn’t say,” Meadows said at the Values Voters Summit Saturday.

The newfound hesitation to oust Rosenstein highlights a cautious approach Trump allies have adopted as the Republican party barrels toward a potential bloodbath in the midterms. Some Republicans fear Trump firing Rosenstein now would only further energize Democrats making the case to voters that the president is corrupt and needs to be reined in by a Democratic House.

[…]

In a Friday interview, Jordan, one of Rosenstein’s fiercest critics in Congress, sidestepped questions about whether the House should revisit Rosenstein’s impeachment or try to hold him in contempt of Congress. Rather, he said, a more focused push to obtain sensitive documents from the Justice Department — which Trump’s allies say would expose anti-Trump bias and corruption the FBI — is the most urgent priority.

“I want to see those memos and evaluate them,” said Jordan, who has clashed publicly with Rosenstein over access to documents and accused him of threatening House Intelligence Committee staffers, an allegation Rosenstein denied.

Politico cites two possible explanations for lawmakers’ hesitation: Republicans are running out of time before members devote themselves full-time to their reelection campaigns. Republicans are worried that the story could have been intentionally planted to provoke Rosenstein’s firing in order to improve Democrats’ chances of retaking the Senate AND the House (Trump actively moving to crush the Mueller probe would be quite the propaganda win for the Dems).

Sean Hannity took this latter theory a step further during his show on Friday evening, where he urged Trump not to fire Rosie and instead insisted that the story could have been a “trap”. He added that he had been told by “multiple sources” that the story was planted by unspecified “enemies of Trump.”

“I have a message for the president tonight,” Hannity said Friday night. “Under zero circumstances should the president fire anybody…the president needs to know it is all a setup.”

Still, a handful of conservative commentators, including Laura Ingraham, urged Trump to fire Rosenstein immediately. And for Trump’s part, he hinted at a rally Friday night in Missouri that he planned to “get rid” of the “lingering stench” at the DOJ, which many interpreted as a hint that his firing is imminent.

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