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Free-Wheeling And Dealing
Donald Trump and Xi Jinping have a deal. Or at least the contours of one. "Concepts of a plan," as T
I read the White House’s announcement re: the trade deal with Malaysia this morning. I suppose Google News thought I should see it. It’s amazing the extent to which it’s basically all take with almost no give. Most mystifying: a $70 billion commitment for investment in the United States. I suppose Malaysia, between the private and the public sector, could come up with $70 billion if they absolutely had to, but it seems vanishingly unlikely. Their annual GDP is only ~$400 billion.
I’ve heard several analysts and such talk about how the post-WWII deal with the US was essentially a trade surplus wherein the producing countries then reinvested their surplus dollars back into US Treasuries and corporate bonds, essentially then financing our growth in what was a perpetual motion machine (for the last 70 years, anyway) until Trump upended this system quickly and with little (heeded) warning. So it’s not like we weren’t already getting trade ‘deals’ with the rest of the world, and certainly that system was built in a way that benefitted us (some of ‘us’ more than others, sure, but still).
I know smart people and Heisenberg readers get that, it’s just that it irks that hell out of me when people cheer Trump’s “deal making ability” yet don’t understand the above one iota.
What, no jokes about Bessent telling Martha Raddatz on ABC this morning “I’m a soy farmer myself”?
I’m trying to picture Bessent in his suit and tie plowing up a field with his John Deere.
With the Orange One it’s continually Groundhog Day with tariffs. We’ve stockpiled cat food, just in case. I’m sure the massive payments from tariffs will be hitting all our bank accounts soon. I’ll need something soon to offset inflation and a possible AI bust. Who knew extortion is the only thing you need for foreign policy when you’re the greatest nation mankind has ever known. No doubt this will be great comfort for everyone who loses health care and SNAP benefits. Meanwhile mega yacht sales are booming.
Give him the damn peace prize. like old actors that never won an academy award, finally they are given a “lifetime achievement” award at the oscars. Everyone knows it means nothing, but maybe it will shut him up.