Trump supporters and apologists are out in force.
Don’t worry, they say. This is great for America, long-term. It will bring jobs back home, factories will once again boom and we won’t have to transfer our wealth to all of those pesky Chinese.
Perhaps.
Yet, for the most part these people don’t know what the hell they are talking about. I wrote about it a few days ago Trump Is Fighting The Wrong Trade War For All The Wrong Reasons
Here is another interesting look at the subject matter..
Why America’s Trade War With China Will Be Absolutely Crippling For The U.S. Economy
Can the global financial system handle a full-blown trade war between the two largest economies on the entire planet? We have never seen anything like this happen in the modern age, and this is creating a tremendous amount of uncertainty for the financial markets. Yes, something had to be done, and I have been writing about this for years. China has been stealing our intellectual property, manipulating currency rates and slapping high tariffs on American goods. We simply could not allow China to continue to take advantage of us, but now we are so dependent on the Chinese that a trade war with them is going to inevitably produce a great deal of pain. We are all going to wish that another way could have been found to resolve this crisis, because in the short-term this is definitely going to hurt the U.S. economy. And if President Trump chooses to press forward with trade wars against Europe, Canada and Mexico at the same time as well, the pain for our economy is going to be off the charts.
Once a trade war begins, it can potentially last for many years, and let us not forget that history has shown us that trade wars can often lead to shooting wars.
I believe that a tragic strategic mistake has been made, and this is not going to end well.
Bingo.
Not only do we have to look at the actual trade war, but we also have to consider who is waging it. In this particular case, someone with a fragile ego who has no idea what he is doing. This will not end well.
Most importantly, Trump’s trade war will send the US and Global Economies into chaos. And with S&P earnings collapsing, due to strong dollar and significant slow down in global trade, it won’t be a pretty sign when robo machines and forever bulls realize the stock market is selling at historically high valuation levels.
If you would like to find out what the stock market will do next, based on our precise timing and mathematical work, please Click Here
