Trump Wins: G-20 Drops 'Anti-Protectionist, Free-Trade, & Climate-Change Funding' Pledge

Tyler Durden's picture

After delays and hours of discussions amid tensions over 'trade' comments between the United States and the rest of The G-20, it appears President Trump has 'won'. While China was "adamantly against" protectionism, the finance ministers end talks without renewing their long-standing commitment to free trade and rejection of protectionism after US opposition.

The world's financial leaders are unlikely to endorse free trade and reject protectionism in their communique on Saturday because they have been unable to find a wording that would suit a more protectionist United States, G20 officials said.

This would break with a decade-old tradition among the finance ministers and central bankers of the world's 20 top economies (G20), who over the years have repeatedly rejected protectionism and endorsed free trade.

But the new administration in the United States is considering trade measures to curb imports with a border tax and would not agree to repeat the formulations used by previous G20 communiques, clashing with China and Europe, the officials said.

"Unless there is a last minute miracle, there is no agreement on trade," one official, who declined to be named, told Reuters.  "This is not a good outcome of the meeting," a G20 delegate quoted Bundesbank President Jens Weidmann as saying.

In a partial face-saving move, as The FT details, G20 finance ministers meeting in the German resort town of Baden-Baden noted the importance of trade to the global economy, but dropped tougher language from last year that vowed to “resist all forms of protectionism”.

The new communique said: “We are working to strengthen the contribution of trade to our economies. We will strive to reduce excessive global imbalances, promote greater inclusiveness and fairness and reduce inequality in our pursuit of economic growth.”

 

The watered-down commitments on free trade reflected the anti-globalisation mood that Donald Trump has brought to Washington and came in the first G20 meetings between Steven Mnuchin, the new US Treasury Secretary, and his foreign counterparts.

US Treasury Secretary Mnuchin spoke to reporters after the meeting:

  • *MNUCHIN: LOOKING FORWARD TO WORKING CLOSELY W/ G-20 COLLEAGUES
  • *MNUCHIN: CONFIDENT U.S. CAN WORK CONSTRUCTIVELY WITH PARTNERS
  • *MNUCHIN: U.S. BELIEVES IN FREE, BALANCED TRADE
  • *MNUCHIN SAYS WILL LOOK AT TRADE SURPLUSES WITH VIEW TO CORRECT
  • *MNUCHIN SAYS MULTILATERAL AGREEMENTS HAVE VERY IMPORTANT PLACE
  • *MNUCHIN SAYS U.S. WANTS TO RE-EXAMINE TRADE DEALS INCL. NAFTA
  • *MNUCHIN: U.S. BELIEVES IN APPROPRIATE REGULATION
  • *MNUCHIN SAYS IMPORTANT BANKS CAN PROVIDE LIQUIDITY IN MARKETS

Reuters also points out another potential win for Trump as the communique will also drop a reference, used by the G20 last year, on the readiness to finance climate change as agreed in Paris in 2015 because of opposition from the United States and Saudi Arabia.

Trump has called global warming a "hoax" concocted by China to hurt U.S. industry and vowed to scrap the Paris climate accord aimed at curbing greenhouse gas emissions.

 

Trump's administration on Thursday proposed a 31 percent cut to the Environmental Protection Agency's budget as the White House seeks to eliminate climate change programs and trim initiatives to protect air and water quality.

 

Asked about climate change funding, Mick Mulvaney, Trump's budget director, said on Thursday, "We consider that to be a waste of money."

The G20 do agree, however, to show continuity in their foreign exchange policies, using phrases from the past on foreign exchange markets.

As we noted earlier, needless to say, such an acrimonous end to the weekend's summit would likely result in a surge in FX volatility when markets open for trading late on Sunday, reflecting the new state of global trade flux, in which the future of the US Dollar is completely unknown, and reflecting the emerging chaos over the future parameters of trade.
 

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cbxer55's picture

My feelings exactly!  ;-)

guitarzaan's picture

climate 'science' is a discredited, refuge for 'scientists' who manipulated the raw temperature data to support their grant-seeking, totalitarian cave-dwellers' wet-dream society with tools like you as the centerpiece of their 'movement.'  'Go forth and punish and shout down the dissenters, clayslab!'

Meanwhile, Real Science, Engineering, and Creativity, ARE  in progress by people with real degrees and useful experience in the quest to invent a new means of tapping an old energy source.

http://www.iter.org/

Raging Debate's picture

Lumberjack - Thanks for the post. The oligarchs have begun there wars against one another. 

I liked this news article and Trump doing what he said on trade. Mnuchin does look like a kiddie predator from 1980 haha. Just give the guy a trench coat and the image would be perfect. 

gatorengineer's picture

Bullshit on the Margaret Thatcher stuff.  Global warming was chosen as the next great enemy of man after the fall of the soviet union.  There always has to be a common enemy and CO2 was chosen.

Had they been smarter or less jew controlled they would have picked Islam.

political_proxy's picture

Back to the ol'...

When was it ever left? 

toady's picture

Well, my impression was that the whole world was sucking the U.S. dry through subsidises and "gifts", (or, conversely, the U.S. was sucking the world dry of natural resources. 

 

Dugald's picture

 

Some pigs squeal more than others.....!

earleflorida's picture

sometimes the left hand doesn't know what the right hand is doing, until they're both indulging in the cookie jar

bearwinkle's picture

"Imagine how the left feels from all this winning"

That makes it even more WINNING!

 

shivura's picture

i think it's great--as a member of the left i feel differently about different issues..i think Trump is right about protectionism--but he has to be careful--i also don't see him jawboning about china tariffs anymore--i expect him to give most of the 1 trillion dollar infrastructure project to chinese companies..

everything else he is truly the most idiotic leader i have ever seen, unless his objective (like bannon states) is actually to dismantle the united states--then he is doing great..

funny that people are claiming this as winning--shows how desperate his media/supporters are becoming...wait until the next recession hits/you don't have a job/healthcare/and you are underwater on your house. i can't wait til you all blame obama for that one and actually believe yourselves...wake up and stop drinking the Trumpaid--this man could give two fucks about you--you and your inferior genes disgust him

cbxer55's picture

A recession was baked in no matter who won. Don't you know that every single time a two term president leaves office, the new El Presidente has a recession in their first year. Even if Hitlary had won, it would have happened to her. You can't beat history.

JRobby's picture

It's called "getting with the program"

So many Trolls here now I feel like I need a machete. 

Stupid time wasting bastards. So warped they can't even masturbate at a functional level.

GreatUncle's picture

Mewm - the whole world is a win on this one!

The globalist free trade is the exploitation of all people around the world in one form or another.

 

greenskeeper carl's picture

"China is against protectionism"

 

The irony, it stings! . I won't be "satisfied" until we stop giving any moey to the UN but I am "happy" about the progress so far.

nmewn's picture

"China is against protectionism"

lmao!...the leftwing HuffPo readers won't have any idea what the hell you are talking about.

So lets keep it that way, for now ;-)

kw2012's picture

You would be against protectionism too if you were the low cost provider. Just imagine of china had to comply with our EPA regs and OSHA and ADA 

DocBerg's picture

You would also be against protectionism with local content laws, and with a border adjusted VAT.  Free Trade my ass!

GreatCaesar'sGhost's picture

If I run up my credit card debt or buy treasuries for my retirement, am I free to not pay my taxes for the police?

Quantum Bunk's picture

 

Funny how quickly Zerohedge commenters become modern monetary theorists when they are confronted with the fact that the US is a debt slave to the EU

Yen Cross's picture

  You're a delusional twit that needs to get an education about finance. We're not here to do that for you.

  The top 2 holders of US debt are China and Japan you tool!

TheLastTrump's picture

Funny how this "debt slave" rattles all EU leadership when it insists rules be followed.

 

If your words were true the EU would have some power, no? lol

fattail's picture

How many aircraft carriers does the EU have?  What do they do if we don't pay?  How much debt do they have?  

There's a reason slaves aren't allowed to own guns.

25or6to4's picture

"How many aircraft carriers does the EU have?

Pretty much zero after the UK officially pulls out.

Quantum Bunk's picture

USSA has ZERO carriers that aren't subisdized by China, Japan and the EU

False_Profit's picture

They may buy your shit at huffpo, but you're in more savvy company here 41 week old trolling newbie...

godemperoroldhickorytrump and the rest of us patriotic americunz will have the last laugh when he tells the Fed to get bent on a frn$.05 on the frn$20T debt settlement and then rolls out new .gov TREASURY issued DEBT FREE DOLLARZ BITCHEZ!  It's time to understand the banking slavery we have been under and FUCK THE FUCKERZ BAREBACK IN THE STREETS!

TRANSLATION: 

FREE CARRIERS!

...in addition to an unbelievable industrial Renaissance in red white and blue land that will leave dumbfuckistani's residents shell-shocked and their Starbucks flavored water running out of the sides of their mouths...

Mark my words...it's coming...

How would Wallace have said it?

"FREEEEEEEEEEEEEEEEDOOOOOOOOOOOOM!"

Gott mit uns!

JRobby's picture

We have the weapons. They have a piece of paper in the scenario you "tout"

When you don't know basic accounting, you don't know basic accounting. 

Games Without Frontiers's picture

The saying, "If someone owes you a thousand dollars, they have a problem, if they owe you a million dollars, you have a problem", comes to mind, for some reason.

Quantum Bunk's picture

EU is NO trade deficit. So they will lose the US treasury trash but that's it. They are net creditors. The USSA debt queens have way more to lose.

You MMT coward

any_mouse's picture

1K or 1mm, it is the same, just made up figures.

There was no loan of real value.

The bank created an accounting entry from nothing.

There is no valid debt incurred.

Requiring a lien on physical assets as collateral for the artificial book entries.

Banking is a scam to enable plunder.

Smedley's picture

No one here ever claims to be a monetary theorist, because that is a clown ass leftie that has never worked in the real world!

Fixed it....

;-)

Quantum Bunk's picture

You are without realzing it.

 

The USSA with its monopoly on "reserve" currency and 95 million unemployed and a military and govt debt more than the entire EU combined plus the UK, IS LIVING IN THE REAL WORLD ?????

JekyllIsland's picture

Quantum or Dickhead you choose

 

Even CNN reports that the foreignors only hold about 32% of US debt...the largest holders are local and state governments, then unions...assholes like you should get cancer

gatorengineer's picture

and lowly Belgium will be found to be the biggest holder..... Dig a little deeper sparky

HopefulCynical's picture

Cancer of the asshole. I like it.

post turtle saver's picture

and you'll buy more of that debt and you'll LIKE it while you do it... LOL

Quantum Bunk's picture

The EU is also the biggest holder of gold in the world so no.  You seppo lowlife have it backwards. You are subservient debt slaves to the EU. When the EU sells its US debt, the dollar collapses.

 

Funny how quickly Zerohedge commenters become modern monetary theorists when they are confronted with the fact that the US is a debt slave to the EU

OpTwoMistic's picture

The dollar collapses because the FED is printing fiat like 1920s Germany backed by nothing.

Then the US "borrows" unless fiat and pay interest. Why do we need a Fed.

China is soon to back Yuan with PMs and that is the end for all unbacked fiat. 2017 or 2018?

earleflorida's picture

PM's, ie., Gold... is the only litmus`test for Inflation-- it has always been the ultimate barometer!

Deathrips's picture

The FED was the britizionists recapture of America.

 

Its shareholders are in the city of london (dont confuse with london), vatican and is ra el. They are the moneychangers. Saxberg, rockerfeller, rothschild

America has not bein autonomous for over 100 years.

RIPS

 

MEFOBILLS's picture

The hyperinflation in Weimar Germany was due to private banks, then under the gold standard.  The mark came under exchange rate pressure due to inter-ally debts.

The axis parties England and France were in debt to U.S. Treasury and were squeezing Germany for dollars.  This put exchange rate pressure on the Mark.  

Bear Raiders sniffed out this exchange rate pressure and shorted the mark.  The act of shorting bear raids, is that you borrow more Marks.  This then put more Marks into the Germany money supply.  It was private bank loans that created the marks.  At this time, the Reichsbank was privatized under the Dawes plan.

China is not going to back the Yuan with PM's...  they have four state banks, and hence their money is sovereign.  The PM's that China is hoarding is for a new SDR, where the basket holds national currencies and PM's, and probably commodities.  Internally, the Yuan will continue to match goods and services production.

You second statement about U.S. borrowing is incoherent.  

Russia is paying Rubles for their locally mined gold, which then can be put in the Central Banks.  Russia's central bank operates under Basel (Rothchild) Rules, so they need FX or Gold to emit Rubles.  China has much more latitude since their state banks are government owned.

The fact that China can emit fiat YUANS in the way they do, is a key reason they are kicking Americas ass in trade war.

post turtle saver's picture

no it isn't... the EU CB holds only 6% of what the US has in reserves... the rest is held by individual countries and none of them come close to US holdings...

we're talking about the total amount of gold mined in the world valued at about $9 trillion USD anyway, so in the great scheme of things whoopty doo... that's not even US GDP...

I'll say it again, you'll buy US debt and you'll smile and ask for more while you do it because it's the cleanest dirty shirt in the laundry... you can wear it or go naked while you run your socialist states on the back of US defense, your choice...

gatorengineer's picture

The fallacy is defend themselves against what?  Russian can no more mount a land offensive.  the Muzzies have already overrun them.....  A platoon of drunk pollacks could take Germany without a shot being fired.

I am shure the next round of german arms will be the non-lethal variety, so no one gets hurt.

 

 

tmosley's picture

That's like saying you are an employee of the bank because you have a mortgage there.

Loans aren't payments. Just the opposite.

MEFOBILLS's picture

Loans are hypothecation events, where new bank credit is created from nothing.  When you pay back the loan, you are paying back your credit.  You created the credit with your signature authority.  The bank is a third party agent, given this power by law.

The law allows the bank to take usury and seigniorage.  The first loan payments are pure interest to the banker, and pass through your double entry ledger.  The banker then spends your money, or pays his debts higher up in the pyramid.

You only pay down your loan at the back end, hence the first use seigniorage, and higher pruchasing power, accrues to the banker.

Quantum Bunk's picture

Hey all of you down voters. Do you think this is untrue ? Ha !

 

Search Results EU, not China or Japan, is the biggest US Treasury holder - GEFIRA https://gefira.org/.../eu-not-china-or-japan-is-the-biggest-us-treasury-......

Jan 24, 2017 - US-based media have been reporting that Japan has become the biggest holder of the US treasuries, surpassing China last month. However ...

 

https://gefira.org/en/2017/01/24/eu-not-china-or-japan-is-the-biggest-us...

greenskeeper carl's picture

i don't think you are wrong, i just fail to see how its relevant. LOANING our broke ass govt money, at interest, is not the same as PAYING for defense.

 

Easiest way to solve this? End NATO.

Quantum Bunk's picture

It is worse. All of that US treasury debt is just accumulated productivity savings that would have otehrwise put appreciative pressure on the Euro currency. And it still can and will. The ECB just has to sell this trash and buy Euro's. The Euro will print a 2.00 on the DXY if they did this

 

With a Euro worth 2 dollars, defence would be cheap