Submitted by Eric Peters, CIO of One River Asset Management
The planet’s most powerful military threatened to reconsider NATO unless Europeans meet their spending commitments. Europe’s leaders repeated unfulfilled pledges to do just that, returning to their parliaments to find the funds. Earth’s biggest consumer threatened to impose 10% tariffs on another $200bln of imports from the planet’s largest producer. Beijing vowed to retaliate. Its deeply indebted economy, overleveraged to ever-rising global trade, now faces the opposite. Lady Liberty warned the West of immigration’s profound threat to cultural identity, domestic security, harmony. Americans voted for real change. And it’s coming.
Peter Navarro, White House Trade Director, published a 36-page paper last month titled: How China’s Economic Aggression Threatens the Technologies and Intellectual Property of the United States and the World. If you subscribe to the view that the current trade conflict with China will pass with some modest concessions, it’s a must read. Navarro also made a 30min speech on the topic, which emphasizes just how deep the conflict runs. America’s trade deficit is an issue, but far from the primary conflict.
“It’s very sad when Germany makes a massive oil and gas deal with Russia, where you’re supposed to be guarding against Russia, and Germany goes out and pays billions and billions of dollars a year to Russia,” said Trump. “You’ve given up all of your strength. I think it’s very bad for Germany. (more…)