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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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European Court of Justice rules Britain free to revoke Brexit unilaterally

The European Court of Justice (ECJ) ruled that Britain can reverse Article 50.

RT

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The UK is free to unilaterally revoke a notification to depart from the EU, the European Court has ruled. The judicial body said this could be done without changing the terms of London’s membership in the bloc.

The European Court of Justice (ECJ) opined in a document issued on Monday that Britain can reverse Article 50, which stipulates the way a member state leaves the bloc. The potentially important ruling comes only one day before the House of Commons votes on Prime Minister Theresa May’s Brexit deal with the EU.

“When a Member State has notified the European Council of its intention to withdraw from the European Union, as the UK has done, that Member State is free to revoke unilaterally that notification,” the court’s decision reads.

By doing so, the respective state “reflects a sovereign decision to retain its status as a Member State of the European Union.”

That said, this possibility remains in place “as long as a withdrawal agreement concluded between the EU and that Member State has not entered into force.” Another condition is: “If no such agreement has been concluded, for as long as the two-year period from the date of the notification of the intention to withdraw from the EU.”

The case was opened when a cross-party group of British politicians asked the court whether an EU member such as the UK can decide on its own to revoke the withdrawal process. It included Labour MEPs Catherine Stihler and David Martin, Scottish MPs Joanna Cherry Alyn Smith, along with Green MSPs Andy Wightman and Ross Greer.

They argued that unilateral revocation is possible and believe it could provide an opening to an alternative to Brexit, namely holding another popular vote to allow the UK to remain in the EU.

“If the UK chooses to change their minds on Brexit, then revoking Article 50 is an option and the European side should make every effort to welcome the UK back with open arms,” Smith, the SNP member, was quoted by Reuters.

However, May’s environment minister, Michael Gove, a staunch Brexit supporter, denounced the ECJ ruling, insisting the cabinet will not reverse its decision to leave. “We will leave on March 29, [2019]” he said, referring to the date set out in the UK-EU Brexit deal.

In the wake of the landmark vote on the Brexit deal, a group of senior ministers threatened to step down en masse if May does not try to negotiate a better deal in Brussels, according to the Telegraph. The ministers demanded that an alternative deal does not leave the UK trapped within the EU customs union indefinitely.

On Sunday, Will Quince resigned as parliamentary private secretary in the Ministry of Defense, saying in a Telegraph editorial that “I do not want to be explaining to my constituents why Brexit is still not over and we are still obeying EU rules in the early 2020s or beyond.”

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Seven Days of Failures for the American Empire

The American-led world system is experiencing setbacks at every turn.

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Authored by Federico Pieraccini via The Strategic Culture Foundation:


On November 25, two artillery boats of the Gyurza-M class, the Berdiansk and Nikopol, one tugboat, the Yany Kapu, as well as 24 crew members of the Ukrainian Navy, including two SBU counterintelligence officers, were detained by Russian border forces. In the incident, the Russian Federation employed Sobol-class patrol boats Izumrud and Don, as  well as two Ka-52, two Su-25 and one Su-30 aircraft.

Ukraine’s provocation follows the advice of several American think-tanks like the Atlantic Council, which have been calling for NATO involvement in the Sea of Azov for months. The area is strategically important for Moscow, which views its southern borders, above all the Sea of Azov, as a potential flash point for conflict due to the Kiev’s NATO-backed provocations.

To deter such adventurism, Moscow has deployed to the Kerch Strait and the surrounding coastal area S-400 batteries, modernized S-300s, anti-ship Bal missile systems, as well as numerous electronic-warfare systems, not to mention the Russian assets and personnel arrayed in the military districts abutting Ukraine. Such provocations, egged on by NATO and American policy makers, are meant to provide a pretext for further sanctions against Moscow and further sabotage Russia’s relations with European countries like Germany, France and Italy, as well as, quite naturally, to frustrate any personal interaction between Trump and Putin.

This last objective seems to have been achieved, with the planned meeting between Trump and Putin at the G20 in Buenos Aires being cancelled. As to the the other objectives, they seem to have failed miserably, with Berlin, Paris and Rome showing no intention of imposing additional sanctions against Russia, recognizing the Ukrainian provocation fow what it is. The intention to further isolate Moscow by the neocons, neoliberals and most of the Anglo-Saxon establishment seems to have failed, demonstrated in Buenos Aires with the meeting between the BRICS countries on the sidelines and the bilateral meetings between Putin and Merkel.

On November 30, following almost two-and-a-half months of silence, the Israeli air force bombed Syria with three waves of cruise missiles. The first and second waves were repulsed over southern Syria, and the third, composed of surface-to-surface missiles, were also downed. At the same time, a loud explosion was heard in al-Kiswah, resulting in the blackout of Israeli positions in the area.

The Israeli attack was fully repulsed, with possibly two IDF drones being downed as well. This effectiveness of Syria’s air defenses corresponds with Russia’s integration of Syria’s air defenses with its own systems, manifestly improving the Syrians’ kill ratios even without employing the new S-300 systems delivered to Damascus, let alone Russia’s own S-400s. The Pantsirs and S-200s are enough for the moment, confirming my hypothesis more than two months ago that the modernized S-300 in the hands of the Syrian army is a potentially lethal weapon even for the F-35, forbidding the Israelis from employing their F-35s.

With the failed Israeli attack testifying to effectiveness of Russian air-defense measures recently deployed to the country, even the United States is finding it difficult to operate in the country. As the Washington-based Institute for the Study of War confirms:

“Russia has finished an advanced anti-access/area denial (A2AD) network in Syria that combines its own air defense and electronic warfare systems with modernized equipment. Russia can use these capabilities to mount the long-term strategic challenge of the US and NATO in the Eastern Mediterranean Sea and the Middle East, significantly widen the geographic reach of Russia’s air defense network. Russia stands to gain a long-term strategic advantage over NATO through its new capabilities in Syria. The US and NATO must now account for the risk of a dangerous escalation in the Middle East amidst any confrontation with Russia in Eastern Europe.”

The final blow in a decidedly negative week for Washington’s ambitions came in Buenos Aires during the G20, where Xi Jinping was clearly the most awaited guest, bringing in his wake investments and opportunities for cooperation and mutual benefit, as opposed to Washington’s sanctions and tariffs for its own benefit to the detriment of others. The key event of the summit was the dinner between Xi Jinping and Donald Trump that signalled Washington’s defeat in the trade war with Beijing. Donald Trump fired the first shot of the economic war, only to succumb just 12 months later with GM closing five plants and leaving 14,000 unemployed at home as Trump tweeted about his economic achievements.

Trump was forced to suspend any new tariffs for a period of ninety days, with his Chinese counterpart intent on demonstrating how an economic war between the two greatest commercial powers had always been a pointless propagandistic exercise. Trump’s backtracking highlights Washington’s vulnerability to de-dollarization, the Achilles’ heel of US hegemony.

The American-led world system is experiencing setbacks at every turn. The struggle between the Western elites seems to be reaching a boil, with Frau Merkel ever more isolated and seeing her 14-year political dominance as chancellor petering out. Macron seems to be vying for the honor of being the most unpopular French leader in history, provoking violent protests that have lasted now for weeks, involving every sector of the population. Macron will probably be able to survive this political storm, but his political future looks dire.

The neocons/neoliberals have played one of the last cards available to them using the Ukrainian provocation, with Kiev only useful as the West’s cannon fodder against Russia. In Syria, with the conflict coming to a close and Turkey only able to look on even as it maintains a strong foothold in Idlib, Saudi Arabia, Israel and the United States are similarly unable to affect the course of the conflict. The latest Israeli aggression proved to be a humiliation for Tel Aviv and may have signalled a clear, possibly definitive warning from Moscow, Tehran and Damascus to all the forces in the region. The message seems to be that there is no longer any possibility of changing the course of the conflict in Syria, and every provocation from here on will be decisively slapped down. Idlib is going to be liberated and America’s illegal presence in the north of Syria will have to be dealt with at the right time.

Ukraine’s provocation has only strengthened Russia’s military footprint in Crimea and reinforced Russia’s sovereign control over the region. Israel’s recent failure in Syria only highlights how the various interventions of the US, the UK, France and Turkey over the years have only obliged the imposition of an almost unparalleled A2AD space that severely limits the range of options available to Damascus’s opponents.

The G20 also served to confirm Washington’s economic diminution commensurate with its military one in the face of an encroaching multipolar environment. The constant attempts to delegitimize the Trump administration by America’s elites, also declared an enemy by the European establishment, creates a picture of confusion in the West that benefits capitals like New Delhi, Moscow, Beijing and Tehran who offer instead stability, cooperation and dialogue.

As stated in previous articles, the confusion reigning amongst the Western elites only accelerates the transition to a multipolar world, progressively eroding the military and economic power of the US.

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Is Silicon Valley Morphing Into The Morality Police?

Who gets to define what words and phrases protected under the First Amendment constitute hate — a catchall word that is often ascribed to any offensive speech someone simply doesn’t like?

The Duran

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Authored by Adrian Cohen via Creators.com:


Silicon Valley used to be technology companies. But it has become the “morality police,” controlling free speech on its platforms.

What could go wrong?

In a speech Monday, Apple CEO Tim Cook said:

“Hate tries to make its headquarters in the digital world. At Apple, we believe that technology needs to have a clear point of view on this challenge. There is no time to get tied up in knots. That’s why we only have one message for those who seek to push hate, division and violence: You have no place on our platforms.”

Here’s the goliath problem:

Who gets to define what words and phrases protected under the First Amendment constitute hate — a catchall word that is often ascribed to any offensive speech someone simply doesn’t like?

Will Christians who don’t support abortion rights or having their tax dollars go toward Planned Parenthood be considered purveyors of hate for denying women the right to choose? Will millions of Americans who support legal immigration, as opposed to illegal immigration, be labeled xenophobes or racists and be banned from the digital world?

Yes and yes. How do we know? It’s already happening, as scores of conservatives nationwide are being shadow banned and/or censored on social media, YouTube, Google and beyond.

Their crime?

Running afoul of leftist Silicon Valley executives who demand conformity of thought and simply won’t tolerate any viewpoint that strays from their rigid political orthodoxy.

For context, consider that in oppressive Islamist regimes throughout the Middle East, the “morality police” take it upon themselves to judge women’s appearance, and if a woman doesn’t conform with their mandatory and highly restrictive dress code — e.g., wearing an identity-cloaking burqa — she could be publicly shamed, arrested or even stoned in the town square.

In modern-day America, powerful technology companies are actively taking the role of the de facto morality police — not when it comes to dress but when it comes to speech — affecting millions. Yes, to date, those affected are not getting stoned, but they are being blocked in the digital town square, where billions around the globe do their business, cultivate their livelihoods, connect with others and get news.

That is a powerful cudgel to levy against individuals and groups of people. Wouldn’t you say?

Right now, unelected tech billionaires living in a bubble in Palo Alto — when they’re not flying private to cushy climate summits in Davos — are deciding who gets to enjoy the freedom of speech enshrined in the U.S. Constitution and who does not based on whether they agree with people’s political views and opinions or not.

You see how dangerous this can get — real fast — as partisan liberal elites running Twitter, Facebook, Google (including YouTube), Apple and the like are now dictating to Americans what they can and cannot say online.

In communist regimes, these types of folks are known as central planners.

The election of Donald Trump was supposed to safeguard our freedoms, especially regarding speech — a foundational pillar of a democracy. It’s disappointing that hasn’t happened, as the censorship of conservative thought online has gotten so extreme and out of control many are simply logging off for good.

A failure to address this mammoth issue could cost Trump in 2020. If his supporters are blocked online — where most voters get their news — he’ll be a one-term president.

It’s time for Congress to act before the morality police use political correctness as a Trojan horse to decide our next election.

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