Last week began with President Trump labeling China a currency manipulator in his tweets about levying new tariffs on that country, causing an overall escalation of trade tensions.
The way it was done — and the way the wizards of Wall Street and many politically bent pundits interpreted it — was shameful.
For starters, the president’s tweets overmagnify the importance of a 10 percent tariff on $300 billion, which is $30 billion — nothing to a $20 trillion economy like ours.
The reactions by the financial pundits and Wall Street “geniuses” were as pathetic as they were laughable, and unsettled Main Street needlessly.
China doesn’t play remotely fair, so kudos to the president for standing up to it. But it’s time to negotiate in a productive fashion, understanding that we do not need the “perfect” deal. We just need a good deal that begins to move the ball down the field and back in our favor.
And, by the way, the tariff war really has nothing to do with interest rates. The president has clearly conflated the two in order to move the Federal Reserve along on correcting its unrelated oversteps.
Source: New York Post