What's Trump's Real Trade Target: China Or Europe?

Authored by Mike Shedlock via MishTalk,

Do Trump's endless trade volleys and sanctions have a clear target? Consider the possibility it's the EU, not China.

Out of the blue, and with open rebuke form Democrats and Republicans, Trump reversed sanctions on China.

This was peculiar in and of itself, but his rationale raised more than a few eyebrows.

All of a sudden. Trump is concerned about "too many jobs lost in China"!

One can rationalize this is about Rotting Cherries, Spoiled Pork, and Car Inspections, but could it be there is more than meets the eye?

Iran Sanctions

Bloomberg reports Iran’s Door to the West Is Slamming Shut, and That Leaves China.

China is “already the winner,’’ said Dina Esfandiary, a fellow at the Centre for Science and Security Studies at King’s College in London, and co-author of the forthcoming ‘Triple Axis: Iran’s Relations With Russia and China’.

Turning East

EU Disharmony

CNBC says Trump’s Iran sanctions will aggravate the French-German discord on EU reforms.

5,000 German Corporations Hit By Trump Policy

One can rationalize this all away, but a translation from Spiegel Online underscores the key idea: Trump's Policies Hit Nearly 5,000 German Companies.

Sanctions on Europe. Not Iran

Eurointelligence fills in some blanks.

Over the last three days it gradually dawned on the Germans that Donald Trump's sanctions against Iran are in reality sanctions against Europe, and Germany in particular. The combination of third-party sanctions and changes to US tax laws has led to a situation where a large number of German companies now have an overwhelming interest to shift their business to the US, according to Spiegel Online.

FAZ notes that the helplessness of the German government is becoming increasingly evident, both economically and politically. The paper notes that even Angela Merkel is casting doubt on whether it is possible to maintain the Iran nuclear agreement after Trump's decision.

Goodbye Europe

The cover of Der Spiegel this week this week, "Goodbye Europe" says it all.

Politico reports Europe’s ultimate Trump strategy: Appeasement.

Intent or Collateral Damage?

China responded to Trump tariffs by inspecting fruit to the point it rotted, pork until it spoiled, and Ford autos in such a manner that it required disassembly. Trump changed tactics.

It's easy to make a case that the only thing Trump understands is force.

It's also possible Trump is totally clueless and he is ruled only by spur of the moment decisions.

Finally, one can make a case that Trump's true intent all along was to bust up EU solidarity and everything else is just a sideshow.

It's easy to make that case even though Occam's Razor suggests the alternatives are more likely.

Regardless, the EU's roll over and play dead response to the sanctions is a sure loser for the EU and a sure winner for China.

Ball in Play

EU, the ball is in your court.

Last week Merkel stated it's time for “Europe to take its destiny into its own hands.”

OK - Do it!

Staring at the ball as it rolls over you does not win points.

Comments

NidStyles Pandelis Wed, 05/16/2018 - 05:48 Permalink

Who cares. 

Heres some truth, the street gangs aren’t aware that they sold out the only guy that was preventing the Israeli mob from completely running them over just for a few laughs.

They helped take down the one guy that was stopping the Israeli mob from running everywhere and Trump was in on it. He gave them free reign to organize and try to frame him and sell him into slavery within the US to take him down and the police were in on it.

 

You guys fucked yourselves and Trump only spent $150000 to get them to agree to move that embassy because he agree to let them go after that guy on US soil.

 

You guys were played, and yes the evidence does exist. Trump made sure it was kept for a reason. It’s all being kept for a reason, in case something happens that shouldn’t.

 

I am inside your head Trump, one by one your secrets will be mine. Before this is done, I will own you.

In reply to by Pandelis

Endgame Napoleon RedBaron616 Wed, 05/16/2018 - 08:21 Permalink

Whatever China does, they are like a frequently absentee, womb-productive momma in the US workforce: above critique due to producing so many humans.

China cannot lose any jobs due to its massive womb productivity, but America can spare over 2 million jobs and Social Security contributions before the gigantic Boomer retirement by giving them to China.

China is also like a US working mom, in that she never expresses concern for anything but her own plight and the plight of fellow moms with unearned, womb-productivity-related income streams. Unabashed insularity and claims to ever-more welfare is attributed to concern for babies, even though much of it is spent on self indulgences.

China cannot lose any jobs, and China is above criticism due to the fact that all things—good & bad—are done in the service of its babies. 

Even though the once-middle-class USA is so littered with homeless encampments that one of the richest cities in the country just imposed a homeless tax, the US can afford to give away millions of jobs to Asia, with American elites investing most of their tax cuts in Asia as usual.

German elites are more likely to invest in America than American elites, and the Germans, with their pro-labor tradition, actually pay their workers something, whereas American elites have one overriding business priority: keeping wages at rock-bottom.

An interesting technique that US companies use to accomplish this goal involves promoting “free market” ideas, while supporting an elaborate welfare state for their preferred workforce of moms with a spousal income that covers most bills, divorced moms with child support that covers rent and single moms or legal / illegal immigrants, working part time or in a temporary capacity to stay under the income limits for a large assortment of womb-productivity-based, monthly welfare programs that cover their major household bills, like rent & food, and refundable child tax credits (EITC) up to $6,431. 

Until Trump, American capitalists did not even try to disguise the fact that they really love Asian mercantilist communism and really hate free markets, including free (non-welfare-dependent) labor markets. 

Despite the PR parade promoting kumbaya diversity in the USA, American businesses also really love the non-racially-diverse, low-cost, Asian workforce.

When American companies invest any money in America, they want to invest their funds in low-cost, part-time, welfare-buttressed citizen / noncitizen labor, including labor from welfare-consuming illegal aliens, rather than investing in a workforce composed of citizens who need for the wages alone to cover all household bills, including rent that eats up more than half of their earned-only income.

When not operating in the communist-mercantilist countries that they love, American companies are welfare queens. 

In reply to by RedBaron616

Andrew-Winter Xredsx Wed, 05/16/2018 - 08:14 Permalink

LMAO
 

Good one.    I don't "believe" the theories.   But there is NO doubt that they have shaped world history in a big way since before the Spanish American War.

I teach history at the community college level, and I truly want to teach a class called "Conspiracy Theories of the Twentieth Century".  It would be an absolute blast.   Pretty sure I could turn half the snowflakes in the class into paranoid nervous wrecks in the first three weeks.

 

In reply to by Xredsx

JimmyJones css1971 Wed, 05/16/2018 - 07:04 Permalink

Many Europeans don't want their land settled by Middle Eastern people. It's being forced on them. The Eastern Countries are at odds with the Western EU members, the Southern are at odds with the northern members. Trump is just helping them break apart and put a knife in the Central EU bank in the process. It's a good move.

In reply to by css1971

Itdoesntmatter JimmyJones Wed, 05/16/2018 - 07:42 Permalink

Because Trump is a fucking moron....one minute he's threatening China because they're taking American jobs and stealing tech, the next minute he's worried about jobs in China...One minute he's threatening rocket man in N Korea, the next minute he's praising rocket man...

And basically because trump is a fucking liar...who breaks deals and ruins America's reputation.  And fucktards applaud the fucking idiot...

fuck you people are stupid.

 

In reply to by JimmyJones

Mike Rotsch Wed, 05/16/2018 - 02:09 Permalink

Europe screwed itself way before Trump showed up on the scene.  Now that socialism, open borders, a massive influx of migrants and Brexit "negotiations" are top themes in the EU, Trump certainly would make a convenient scapegoat for all of their problems.  There are 196 countries in the world, but failure to be able to trade with Iran is going to be the catastrophe that will "result in its demise".  From there, the flame of anti-Americanism burning there, will certainly get some more oxygen.

RedBaron616 Kopfs Wed, 05/16/2018 - 06:13 Permalink

Keep voting GOP and believing it will be different this time. American voters are stupid. They learn nothing and go vote the same way, time after time. Write someone in. Support a third party with money, like the Constitution Party. The GOP laughs as it and its sister party, the Dems, bankrupt the country.

In reply to by Kopfs

JimmyJones RedBaron616 Wed, 05/16/2018 - 07:11 Permalink

This is why you need to be active in local politics and be involved in the party committees that back and choose the candidates that run for office. In most local parties well over 70% of committee men are appointed this is because they are vacant. So basically getting a few signatures in your committee district is enough to be a committee person. If you contric the committee you control the party. It's a open secret.

Your board of elections has loads of info on how this works.

In reply to by RedBaron616

rita Wed, 05/16/2018 - 02:16 Permalink

European policies and bailing out banks have created a greater division in Europe than even they the governments as well as the Eu predicted. Bowing to America is the biggest mistake Europe has done since the second world war. So tend to agree with this article when it says It was always about Europe!

Jung Wed, 05/16/2018 - 02:28 Permalink

Great, well done Trump: the only way to make the EU independent instead of a vassal state of US/NATO is to try and sanction them.

They'll find their own system and trade with whomever they like. 

Who wants to be dependent on Mafia style extortion from the US? The times they are a'changing!

new game ZeroBeek Wed, 05/16/2018 - 05:32 Permalink

mericas mafia=nato.

if euro is not another fagged wet paper bag they would end nato and put together an independent national defense and boot usa out for good.

but, lol, not happening.

merica is truely number one in killing equipment. and that is some deep history going back to colt.

winchester repeaters too. lol. take your glock and stick it up your ars...

ps, i like ak and snakey russian babes...

In reply to by ZeroBeek

Lordflin 666D Chess Wed, 05/16/2018 - 08:19 Permalink

Yes, because anyone who does not adopt the group think is entitled to the 'tard' label.

There are few venues for reasoned debate... this used to be one of them. There was a time, here, when you were attacked based upon your reasoning... now it is simply a matter of identifying your tribe. The attempts here to assign me a tribal label range from the ludricous, through the inane, to the outright sad.

This nation, and the world within which it finds itself, is on the brink of despair. Most of the world is ignorant to the point they have no idea why their lives are breaking down. They do not understand the concept of money, or production, or, and this is saddest of all, freedom.

Freedom was thought once upon a time to be our greatest possession... valued even above our lives. It was what defined us as Americans. We came from many tribes, but it was our love of freedom that united as as a society. Most of you seem not to remember that time, or you were to young... and you deny there was ever such a binding and noble principle that held us to our love of flag and country.

We have lost our dignity and self respect. We can no longer enjoin one another as fellow humans with common needs, hopes, aspirations. We hide behind notions and ideals that have never fed the human spirit and make ourselves, through our growing bias, simple tools of psychopathic monsters... the kind that have always arisen when societies loose their way.

It is sad that, along with everything else, we have also lost this quiet oasis of reasoned debate. Those few of us, fewer all the time it seems, who crave connection with fellow human minds are becoming increasingly isolated... our identity as Americans has all but disappeared... and that passion for freedom, the one binding principle that united us as a people, seemingly it is lost forever...

In reply to by 666D Chess

666D Chess Lordflin Wed, 05/16/2018 - 11:25 Permalink

No, I have to disagree, Trump is a swamp creature and that is not just my opinion. There is strong evidence to support it. Google up Wilbur Ross's biography and/or find out whose Ivanka Trump's ex-boyfriend is, hint it's related to Jacob Rothschild. Stop being so philosophical, life is not so complicated. Trump is a pig and if you fail to realize it you are retarded. Simple as. 

In reply to by Lordflin

the_river_fish Wed, 05/16/2018 - 03:42 Permalink

The US had a trade deficit of $375 billion with China and $102 billion with the EU in 2017.

The key thing is the nature of goods in which there is a deficit. With China there was a $97 billion deficit on nuclear reactors and components. If a country is reliant on another country for key equipment then trade talks become tricky.

Here are all trade stats for the US in 2017 including trade by each country and product: 

https://thistimeitisdifferent.com/us-trade-2017

 

To Hell In A H… Wed, 05/16/2018 - 06:06 Permalink

Uncle Scam has no resources of note inside North America. It survives by plundering the weak and the stupid, combined with the ability via dollar world reserve and petrodollar, to print money at will with no adverse market reaction. 

The USSA is over $160 trillion in all combined debt. IE: Government, personal and unfunded liabilities. Trump can announce a $1 trillion infrastructure proposal/bill and it does not even cause an extra heart beat per minute in the international Jew-Buck moneymarkets.

Name me another country in the world that can pull that stunt off? Yet Uncle Scam can still preach to the 3rd and developing world about fiscal responsibility? lol  The USSA is such a hypocrite and liar, somebody should just defecate on Trumps chest and smear it into his man-boobs. The Art Of The deal? Oh please.... Pure bullshit.

Let it Go Wed, 05/16/2018 - 06:49 Permalink

The problem for both America and Europe is China.

Follow the money and the United States huge trade deficit with Mexico becomes even more disturbing as you begin to understand where the money eventually ends up. When you start thinking about all the money and jobs we shift into Mexico each year you would think by now Mexico would be rolling in cash.

A bit of research quickly confirms that the money Mexico receives by way of trading with America quickly passes through its lands and flows to Asia. It could be argued that when all is said and done we are still transferring our wealth to the far east only by the scenic route. More on the problem with this in the article below.

 http://Follow The Money-The US Trade Deficit With Mexico Benefits China.html

Cassandra.Hermes Wed, 05/16/2018 - 06:52 Permalink

China bought pussy-grabber, join-investment in his hotels, ha-ha! Swamp is getting cleaned!

Pussy-grabber lawyer Jay Goldberg just admit on MSNBC that Cohen was hired to work with mobs! So now we need to investigate Pussy-grabber relationship with the mob. It is amazing how all his lawyers are digging his grave!!!