Mr. Trump Against All
Mr. Trump is against everyone.
In recent weeks:
Trump with a scandal held a meeting with the “Big Seven”, refusing to sign under a general statement. His statements to the head of Canada were in fact insults. The meeting of the “Seven” was a series of attacks by Trump on the Allies – Europe (especially Germany), Canada.
Trump took part in the NATO meeting, where he struck everyone with the demand to immediately increase defense spending of the participating countries to 4% – despite the fact that the goal of 2% is quite difficult to achieve. Trump again attacked Germany and Merkel – for low defense spending.
Trump visited Britain and criticized Prime Minister May’s plan for a “soft Brexit” plan, on which the May government’s survival depends.
Trump makes it clear that he considers the EU to be a harmful, unnecessary structure. He offers France to leave the EU.
Trump is attacking China, raising the stakes in the trade war – on Friday he promised to extend new duties on almost all the goods coming to the US from China – to an amount of $500 billion. This will undoubtedly have a noticeable impact on inflation in the US, businesses related to the United States – not to mention the retaliatory measures on the part of China. A very likely consequence will be a sharp cooling down of China-US political relations – these relations have been very friendly since 1978 (!)
In general, it is the US-China trade war that Trump is unleashing right before our eyes – that is the biggest risk for the world economy, and more than the economy.
Trump is attacking the EU on trade issues – demanding to introduce duties on cars from the EU is a blow to Germany. Paradoxically, Trump is counting on Europe’s support in the trade war against China.
Earlier, Trump withdrew from the “nuclear deal” with Iran – while Europe for the continuation of relations with Iran.
Trump attacked his own special services, saying that he did not trust their investigations into Russia’s interference in US elections. Then he refuted his words. And then he said he didn’t trust them again.
Finally, Trump attacked the Fed, condemning the decision to raise rates. He accused the US central bank that raising the Fed’s rate hinders economic growth in the US and strengthens the dollar, which makes US debt (more than $20 trillion) more expensive and helps US competitors – China and Europe – in trade, increasing the US trade deficit.
Trump made this statement on Thursday, and despite criticism that Trump attacks the independence of the US Central Bank, and his statement that he respects the Fed’s independence and personally Powell, the head of the Fed, – on Friday Trump reiterated his criticism.
Perhaps the only person Trump talked about sympathetically in recent weeks is Russian President Putin. Trump, after a meeting in Helsinki with Putin, soon invited the Russian president to the United States for a visit. This, of course, only added fuel to the fire of Trump’s criticism.
Trump announced that China and the ECB specifically pursue a policy of undervaluing their currencies against the dollar, thereby damaging the US in trade. The market started talking about “currency wars”.
This is it. The only thing that can be said: “The more fronts on which the commander is at war, the less chance he has to win.”