Thanks for nothing, Trump! Now, what are you going to do to undo the harm you have done?

Post Reply
neverfail
Posts: 3672
Joined: Sun Dec 18, 2016 3:47 am

Thanks for nothing, Trump! Now, what are you going to do to undo the harm you have done?

Post by neverfail » Mon Mar 04, 2019 9:29 pm

Amid persistent trade tensions and weak consumption there is no indication that business investment will recover this year

World trade volume contracted during 2018, as I reported earlier, and it looks like it is still contracting. Japan’s February reading on the Nikkei Manufacturing PMI came in at 48.9, and Germany’s at 47.6. China’s manufacturing PMI stood at 49.2 in February, slightly contractionary, but its composite PMI was 52.4, decidedly in positive territory.

The difference between China and the others is simple: Shrinking world trade hurts China, but China’s growth during the past ten years has come mainly from domestic demand rather than exports, and China has the capacity to increase domestic demand. Germany, Japan, Taiwan and South Korea do not: When export demand shrinks, output shrinks with it.

There are a number of factors dragging on world trade, for example, overcapacity in the world auto industry, and the saturation of the smartphone market, but the killer blow to world trade came from the Trump Administration, whose tariff war on China froze capital investment plans around the world by creating uncertainty about the viability of existing supply chains.

China may have lost about half a percentage point of GDP growth, from the mid-6% range last year to 6% or so in 2018. But the data suggest that collateral damage among America’s allies was far more painful than the damage to China, Washington’s intended target. That makes Japan, South Korea, Taiwan and Germany all the more dependent on China’s economic stimulus, especially as growth in the US has slowed to a crawl.

https://www.asiatimes.com/2019/03/artic ... the-glass/

User avatar
Doc
Posts: 3068
Joined: Thu Dec 15, 2016 7:09 pm
Location: Cradle To Grave

Re: Thanks for nothing, Trump! Now, what are you going to do to undo the harm you have done?

Post by Doc » Thu Mar 07, 2019 3:01 pm

neverfail wrote:
Mon Mar 04, 2019 9:29 pm
Amid persistent trade tensions and weak consumption there is no indication that business investment will recover this year

World trade volume contracted during 2018, as I reported earlier, and it looks like it is still contracting. Japan’s February reading on the Nikkei Manufacturing PMI came in at 48.9, and Germany’s at 47.6. China’s manufacturing PMI stood at 49.2 in February, slightly contractionary, but its composite PMI was 52.4, decidedly in positive territory.

The difference between China and the others is simple: Shrinking world trade hurts China, but China’s growth during the past ten years has come mainly from domestic demand rather than exports, and China has the capacity to increase domestic demand. Germany, Japan, Taiwan and South Korea do not: When export demand shrinks, output shrinks with it.

There are a number of factors dragging on world trade, for example, overcapacity in the world auto industry, and the saturation of the smartphone market, but the killer blow to world trade came from the Trump Administration, whose tariff war on China froze capital investment plans around the world by creating uncertainty about the viability of existing supply chains.

China may have lost about half a percentage point of GDP growth, from the mid-6% range last year to 6% or so in 2018. But the data suggest that collateral damage among America’s allies was far more painful than the damage to China, Washington’s intended target. That makes Japan, South Korea, Taiwan and Germany all the more dependent on China’s economic stimulus, especially as growth in the US has slowed to a crawl.

https://www.asiatimes.com/2019/03/artic ... the-glass/
China has been lying about its economic numbers for years. In fact it does not even have the means to honestly tabulate them.
“"I fancied myself as some kind of god....It is a sort of disease when you consider yourself some kind of god, the creator of everything, but I feel comfortable about it now since I began to live it out.” -- George Soros

User avatar
lzzrdgrrl
Posts: 498
Joined: Fri Dec 16, 2016 8:18 pm
Location: Okie Doke

Re: Thanks for nothing, Trump! Now, what are you going to do to undo the harm you have done?

Post by lzzrdgrrl » Fri Mar 08, 2019 4:53 pm

Trump deserves more credit than he gets for the economy -- but he hasn't done enough
President Trump had a good first two years where the economy is concerned, and deserves the country's gratitute. But the failure of large corporations to increase productivity-enhancing investment will contribute to a much slower rate of growth in 2019.
https://pjmedia.com/spengler/trump-dese ... ne-enough/
I have a certain notoriety among the lesser gods........

Post Reply