Ever since Trump officially launched his self-declared trade war earlier this year, countries around the world have been lining up to retaliate against his arbitrary use of tariffs—the Senate Finance Committee recently called it “knee-jerk impulses”—in his pursuit to advance his anti-free trade, protectionist agenda.
In January, Trump lobbed the first economy-killing grenade when he imposed tariffs on imported solar panels and residential washing machines. Weeks later Trump launched a second round of attacks with across-the-board tariffs of 25 percent on steel and 10 percent on aluminum.
Following the second round of attacks, Trump’s trade advisor Peter Navarro appeared on FOX Business Network to assure America that Trump knew what he was doing and that fears of a trade war were misplaced because no country would dare retaliate for Trump’s tariffs.
Peter Navarro on tariffs: I don't believe any country will retaliate https://t.co/HVkcCz9iLB
— Mornings with Maria (@MorningsMaria) March 2, 2018
Obviously, with retaliatory tariffs being leveled by Canada, China, Mexico, and the EU, Navarro was not only wrong in his conclusion, but we now find ourselves in the throes of a trade war, with casualties here at home such as we witnessed recently with Harley Davidson’s announcement to move some production overseas to avoid tariffs.
Additionally, the price of steel has doubled, causing layoffs and possible business closures for smaller businesses. For example, last week Mid-Continent Nail announced layoffs for 60 of its 500 employees and may be forced to relocate to Mexico to survive Trump’s trade war.
But don’t worry. Trade wars are “good” and “easy to win.”
When a country (USA) is losing many billions of dollars on trade with virtually every country it does business with, trade wars are good, and easy to win. Example, when we are down $100 billion with a certain country and they get cute, don’t trade anymore-we win big. It’s easy!
— Donald J. Trump (@realDonaldTrump) March 2, 2018
Already guilty of abusing his authority to level tariffs—he can only do so as a matter of national security—and in true “Damn the torpedoes! Full speed ahead!” fashion, Trump is working on a bill he hopes Congress will consider that would shift tariff powers from the legislative branch to the executive branch.
The U.S. Fair and Reciprocal Trade Act would give the president power to level tariffs anywhere, anytime, and for any reason. Former White House Communications Director Anthony Scaramucci refers to Trump’s proposal acrostically, calling it the U.S. FART Act because it “stinks.”
WTO has its flaws, but the “United States Fair and Reciprocal Tariff Act," aka the U.S. FART Act, stinks. American consumers pay for tariffs. Time to switch tactics. https://t.co/OfyOFA1neU
— Anthony Scaramucci (@Scaramucci) July 2, 2018
Personally, I think a better nickname for it is the Emperor Palpatine Act because it gives Trump…
I would like to believe, as the editorial board of National Review does, that Congress would never consider surrendering its Article 1, Section 8 power to “lay and collect Taxes, Duties, Imports, and Excises” to any president, especially Trump. But when you consider that they already allow Trump to abuse his authority to impose tariffs—national security, remember?—not to mention that efforts to rein him in have been shot down by Mitch McConnell and other Republicans sold out to Trumpism, I’m not so sure FART wouldn’t fly if given its wings.
Case in point: We need only remember how Sen. Bob Corker (R-TN) successfully led the charge to surrender the Senate’s Constitutional authority to approve treaties to Obama during the Iran deal to know just how feckless Republicans can be when dealing with unpopular issues.
Originally posted on The Strident Conservative.
David Leach is the owner of The Strident Conservative. His daily radio commentary is distributed by the Salem Radio Network and is heard on stations across America.
Fed survey cites rising concerns about trade tariffs
WASHINGTON (AP) — The Federal Reserve said Wednesday that the U.S. economy was growing in the fall, but there were concerns about higher tariffs from a widening trade war, rising interest rates and tight labor markets.
In its latest report on economic conditions around the country, the Fed said that most of its 12 regions saw moderate growth through late November. Dallas and Philadelphia said growth had slowed, while St. Louis and Kansas City depicted growth as slight.
The report, known as the beige book, found that optimism about the future had waned somewhat, with business contacts citing “increased uncertainty.”
The survey will used at the Fed’s next meeting on Dec. 18-19. The central bank is widely expected to boost its benchmark rate for a fourth time this year at that meeting.
The beige book report noted problems the higher tariffs from Trump’s get-tough approach to trade were causing: rising costs for manufacturers, weaker sales at companies and farmers hurt by retaliatory tariffs imposed by China and other nations.
Even with the tariff concerns, the beige book said most districts continued to report moderate growth in manufacturing.
The impact of rising interest rates affected interest-rate sensitive sectors such as housing, with the beige book noting that new home construction and sales of existing homes were either holding steady or experiencing slight declines.
The Fed survey said that labor markets had tightened further across a broad range of occupations.
“Over half of the districts cited firms for which employment, production and sometimes capacity expansion had been constrained by an inability to attract and retain qualified workers,” the report said.
Unemployment fell in October to a 49-year low of 3.7 percent with economists forecasting further declines in the coming months. A key reason the Fed has been raising interest rates is to slow the economy to ensure that tight labor markets don’t unleash unwanted inflation pressures.
With labor markets already so tight, the Fed said that many districts were seeing examples of firms enhancing their nonwage benefits, including health benefits, profit-sharing, bonuses and paid vacation days.
Despite the wage pressures, the report said that prices continued to increase at a modest pace in most districts although reports of tariff-inducted cost increases have spread more broadly in such areas as manufacturing, retailing and restaurants.
White House intensifies confusion and fear on US-China deal
WASHINGTON (AP) — The Trump administration raised doubts Tuesday about the substance of a U.S.-China trade cease-fire, contributing to a broad stock market plunge and intensifying fears of a global economic slowdown.
Investors had initially welcomed the truce that the administration said was reached over the weekend in Argentina between Presidents Donald Trump and Xi Jinping — and sent stocks up Monday. But on Tuesday, after a series of confusing and conflicting words from Trump and some senior officials, stocks tumbled, with the Dow Jones shedding about 800 points, or 3.1 percent.
White House aides have struggled to explain the details of what the two countries actually agreed on. And China has not confirmed that it made most of the concessions that the Trump administration has claimed.
“The sense is that there’s less and less agreement between the two sides about what actually took place,” said Willie Delwiche, an investment strategist at Baird. “There was a rally in the expectation that something had happened. The problem is that something turned out to be nothing.”
Other concerns contributed to the stock sell-off, including falling long-term bond yields. Those lower rates suggested that investors expect the U.S. economy to slow, along with global growth, and possibly fall into recession in the coming year or two.
John Williams, president of the Federal Reserve Bank of New York, also unnerved investors by telling reporters Tuesday that he supports further Fed rate hikes. His remarks renewed fears that the Fed may miscalculate and raise rates so high or so fast as to depress growth.
The disarray surrounding the China deal coincides with a global economy that faces other challenges: Britain is struggling to negotiate its exit from the European Union. Italy’s government is seeking to spend and borrow more, which could elevate interest rates and stifle growth.
And in the United States, home sales have fallen sharply in the past year as mortgage rates have jumped.
Trump and White House aides have promoted the apparent U.S.-China agreement in Buenos Aires as a historic breakthrough that would ease trade tensions and potentially reduce tariffs. They announced that China had agreed to buy many more American products and to negotiate over the administration’s assertions that Beijing steals American technology. But by Tuesday morning, Trump was renewing his tariff threats in a series of tweets.
“President Xi and I want this deal to happen, and it probably will,” Trump tweeted. “But if not remember, I am a Tariff Man. When people or countries come in to raid the great wealth of our Nation, I want them to pay for the privilege of doing so.”
Trump added that a 90-day timetable for negotiators to reach a deeper agreement had begun and that his aides would see “whether or not a REAL deal with China is actually possible.”
He revisited the issue later Tuesday with a tweet that said: “We are either going to have a REAL DEAL with China, or no deal at all – at which point we will be charging major Tariffs against Chinese product being shipped into the United States. Ultimately, I believe, we will be making a deal – either now or into the future. China does not want Tariffs!”
The president’s words had the effect of making the weekend agreement, already a vague and uncertain one, seem even less likely to produce a long-lasting trade accord.
“We expect the relationship between the world’s two largest economies to remain contentious,” Moody’s Investors Service said in a report. “Narrow agreements and modest concessions in their ongoing trade dispute will not bridge the wide gulf in their respective economic, political and strategic interests.”
Among the conflicting assertions that White House officials made was over whether China had actually agreed to drop its 40 percent tariffs on U.S. autos.
In addition, Treasury Secretary Steven Mnuchin said Tuesday on the Fox Business Network that China agreed to buy $1.2 trillion of U.S. products. But Mnuchin added, “If that’s real” — thereby raising some doubt — it would close the U.S. trade deficit with China, and “We have to have a negotiated agreement and have this on paper.”
Many economists have expressed skepticism that very much could be achieved to bridge the vast disagreements between the two countries in just 90 days.
“The actual amount of concrete progress made at this meeting appears to have been quite limited,” Alec Phillips and other economists at Goldman Sachs wrote in a research note.
During the talks in Buenos Aires, Trump agreed to delay a scheduled escalation in U.S. tariffs on many Chinese goods, from 10 percent to 25 percent, that had been set to take effect Jan. 1. Instead, the two sides are to negotiate over U.S. complaints about China’s trade practices, notably that it has used predatory tactics to try to achieve supremacy in technology. These practices, according to the administration and outside analysts, include stealing intellectual property and forcing companies to turn over technology to gain access to China’s market.
In return for the postponement in the higher U.S. tariffs, the White House said China had agreed to step up its purchases of U.S. farm, energy and industrial goods. Most economists noted that the two countries remain far apart on the sharpest areas of disagreement, which include Beijing’s subsidies for strategic Chinese industries, in addition to forced technology transfers and intellectual property theft.
Chief economic adviser Larry Kudlow acknowledged those challenges in remarks Tuesday morning.
“China’s discussed these things with the U.S. many times down through the years and the results have not been very good,” he said. “So this time around, as I said, I’m hopeful, we’re covering more ground than ever … So we’ll see.”
Complicating the challenge, Trump’s complaints strike at the heart of the Communist Party’s state-led economic model and its plans to elevate China to political and cultural leadership by creating global champions in robotics and other fields.
“It’s impossible for China to cancel its industry policies or major industry and technology development plans,” said economist Cui Fan of the University of International Business and Economics in Beijing.
Trump had tweeted Sunday that China agreed to “reduce and remove” its 40 percent tariff on cars imported from the U.S. Mnuchin said Monday that there was a “specific agreement” on the auto tariffs.
Yet Kudlow said later that there was no “specific agreement” regarding auto trade, though he added, “We expect those tariffs to go to zero.”
Associated Press writer Joe McDonald in Beijing contributed to this report.
Medicare-for-All would cost more than every penny we’ve spent on defense in the country’s history
Math is hard for many Americans. It isn’t just the sad state of our public school system that keeps the people down. It’s politicians like Bernie Sanders and Alexandria Ocasio-Cortez who push lies and pipe dreams that keep many Americans thinking the government has unlimited money and there’s no real difference between millions, billions, and trillions.
There’s a big difference, of course, but leftists will never let the number of zeroes get in the way of promoting their ideological goals. As I posted earlier, even left-leaning news outlets like the Washington Post are calling out Ocasio-Cortez for her false statements about Medicare-for-All.
Ocasio-Cortez must have realized when she Tweeted the article that there’s no way “66% of Medicare for All could have been funded already by the Pentagon.” She was certainly playing down to her base in hopes they’d ignore reality and embrace her false notions just because she said it. The Tweet was either a bald-faced lie or she’s an absolute moron. Or both.
Washington Post, which normally supports socialist initiatives recommended by their Democratic puppetmasters, had to call this particular claim out. They gave the claim “4 Pinocchios,” a designation they save for some of the most egregious lies in politics.
It isn’t just about being completely wrong on the Pentagon’s accounting errors. This goes deeper. While fact-checking her claims, PolitiFact decided to do some math of their own. They gathered defense spending data as far back as they could – 1940 – and tallied the totals. Those who understand the difference between millions, billions, and trillions probably won’t be surprised to learn the total spent in that time is under $18 trillion, well short of the $21 trillion Ocasio-Cortez claimed she could have used to pay 2/3 of Medicare-for-All.
The also stipulated that since defense spending was much lower in the past, it’s very likely the total spent since the nation’s inception still couldn’t hit Ocasio-Cortez’ number.
One tip-off is the amount of Ocasio-Cortez’s “accounting errors” is far bigger than the actual Pentagon spending from 1998 to 2015, which was $8.5 trillion. In fact, it’s also far bigger than the amount the government has spent on national security since 1940 and, in all likelihood, in the nation’s history.
Here’s a chart we assembled showing national-security spending by the federal government from 1940 to today. Ocasio-Cortez’s $21 trillion estimate exceeds the entirety of national-security spending since 1940, which checks in around $17.8 trillion. And while full data back to 1776 doesn’t exist, prorating backwards for another 164 years would almost certainly not add enough to make the total $21 trillion.
Medicare-for-All is projected to cost $32 trillion over its first 10 years alone.
Bernie Sanders, Alexandria Ocasio-Cortez, and all their mathematically challenged supporters need to hear this information now. If you could somehow take back every dollar spent on defense from the time the nation was formed until today, it still wouldn’t be enough to pay for Medicare-for-All. This isn’t a right-wing conspiracy. This is left-leaning Politifact crunching the numbers.
Will Trump suspend the Constitution to build his wall?
Shooting near West Bank settlement kills at least 2 Israelis
The administrative state is far too powerful
Of course an 8-team college football playoff system makes sense
Is Newt Gingrich the perfect Chief of Staff for President Trump?
The administrative state is far too powerful
6 years after Rupert Sheldrake’s censored TEDx talk, ‘The Science Delusion’ continues drawing eyeballs
What classical liberalism is, briefly
George Papadapolous opens up to OAN following release from prison
Schumer, Pelosi demonstrate why Democrats are right to want new blood in leadership
Ben Shapiro calls out the utter hypocrisy of the U.N. for not condemning Hamas
As Israel destroys Hezbollah’s terror tunnels, Benjamin Netanyahu issues a warning
Thomas Sowell on #FakeNews
This quote from Emmanuel Macron didn’t age well
Jonah Goldberg throws water on Alexandria Ocasio-Cortez and her Green New Deal
Guns and Crime14 hours ago
Will the left finally admit that gun confiscation has failed to keep people safe?
Guns and Crime21 hours ago
Ex-Trump lawyer Cohen gets 3 years in prison
Guns and Crime17 hours ago
Yes, the President really is in trouble this time
Democrats16 hours ago
Why losing his Senate race was the best thing to happen to Beto O’Rourke
News17 hours ago
UK’s May wins no-confidence vote by MPs unhappy over Brexit
Politics19 hours ago
What classical liberalism is, briefly
News12 hours ago
Baby of Hanukkah terror victims pronounced dead
Quotes14 hours ago
Ben Shapiro calls out the utter hypocrisy of the U.N. for not condemning Hamas