There was an interesting development last night.
“Many of the trade issues on which U.S. President Donald Trump is now focusing have been concerns for numerous White House administrations, according to Michael Froman, who served as U.S. Trade Representative under former President Barack Obama….
“‘Different administrations have had different approaches – I was part of another administration that had a somewhat different approach – but certainly some of the underlying concerns about subsidies, about [intellectual property] theft, about forced technology transfer, those are longstanding issues that a number of administrations have been concerned about,’ he said.
“On Trump’s tactics, Froman was diplomatic: ‘He certainly has a very distinct approach to trade, and it’s something that he’s had a longstanding view on, long before he ran for president,’ he said. ‘I think the rest of the world is paying attention to that.’”
Indeed – the rest of the world is paying attention. Trump’s domestic critics? Not so much.
Get this: “Froman was diplomatic.” As in – “Froman didn’t berate Trump for his titanically stupid approach to trade.”
But…Froman acknowledges Trump is addressing global trade problems – which Froman acknowledges many previous administrations – including his – attempted to address.
These many previous administrations – FAILED. Which is why Trump is now having to deal with these problems.
Froman acknowledges Trump’s approach – is unlike that of any of his predecessors. And for this new approach – Trump is by his domestic critics roundly, routinely criticized.
But again…the many previous administrations – FAILED. So why on Earth would Trump do what they did?
Again – Trump’s domestic critics aren’t paying very close attention.
There was another interesting development last night.
These exact same mindless “free trade” people – engaged in yet another round of wailing and rending of their very expensive, finely tailored garments.
Screeching the exact same incorrect assertions – they have previously incorrectly screeched about trade wars (that never ultimately happened) with the likes of Mexico and the European Union (EU). To wit:
Get that “Could” in the last two headlines? We’ve said it before: If a headline contains words like “Could” or “Might” – you aren’t reporting news…you’re fortune telling. You’re doing your Miss Chloe impersonation.
And these crystal ballers – ain’t got nothing on Miss Chloe.
The Trump Economy has been booming – throughout the alleged precipitous dooms we’ve allegedly faced with previous alleged trade wars due to Trump’s alleged idiocy.
Trump first set his sites on Mexico.
Except…Trump seems to know his trade war – better than Mexico.
Trump secured that – then turned his attention to the European Union.
Except…Europe didn’t appear to actually want one. And Trump delivered with Europe – exactly what he’s only said he’s wanted with Mexico, China…and every other nation on Earth.
“Donald Trump and European Union officials on Wednesday stepped back from a trade war as they struck a deal to work towards ‘zero’ tariffs, barriers and subsidies.”
“Zero tariffs, barriers and subsidies.” Now THAT is actual free trade.
A spectacular development that doesn’t remotely resemble the current global patchwork quilt of massive tariffs and tiny limits on US imports – and massive global subsidies with which US exporters have to compete.
Oh: And “zero tariffs, barriers and subsidies” – is, like Trump, exactly for what we have been calling for years.
“Where we approach the planet and say “You get rid of your trade barriers, and we’ll get rid of ours.” In other words, we have zero protectionism – and so does everyone else….
“There’s beauty in its simplicity. Obviously it will take a bit of international cooperation to get it off the ground, but as the late, great Ronald Reagan said, ‘There are no easy answers – but there are simple answers.’”
And then came Trump.
Let’s call country after country agreeing to new, much-better-for-America deals as a result of Trump’s tariffs – “international cooperation.”
And fret not – China too will “cooperate.” Because they need us – WAY more than we need them.
Yes, there is a “Could” in that headline. But that “Could” – is backed by many, many facts:
“Nearly 20 percent of China’s exports go to the U.S.
“If a trade war ensues with the U.S., China’s GDP growth would drop 0.5 percent and could continue to fall as things heat up, the IMF warns.
“China’s debt-to-GDP has ballooned to more than 300 percent from 160 percent a decade ago.
“Chinese officials now warn of a financial-sector debt bubble that’s waiting to burst.”
Sounds like that “Could” – could very much be a “Would.”
Sounds like China’s “cooperation” – will soon be on the way.
Which means even more movement towards global Zero-for-Zero in all things trade – is also on the way.
All of which – is a very good thing.
The only people surprised by this – are the wailing DC Experts in their self-rend-ed fancy suits.