Tag Archives: Davos

TRADE WAR LOOMING

Consternation has been expressed this week that the US currently has no Ambassador to South Korea, at a time when war between the US and North Korea is a definite possibility.  Nothing has been said about the fact that the US has no Ambassador to the European Union, also at a very critical time.

On Sunday, in a British television interview, President Trump described the EU’s trading policies as “unfair” to the US and threatened increased tariffs on imports from the 27-member nation trading club.

The US president, Donald Trump, claimed in an interview with ITV broadcast on Sunday that the EU had been “very unfair” on American exporters, and that it would “morph into something very big” that would “turn out to be very much to [the EU’s] detriment.”

Washington is currently examining the case for protecting US economic interests on national security grounds, including the imposition of import tariffs on aluminum and steel.

Responding to Trump’s comments, a spokesman for the European commission told reporters in Brussels that the EU was ready to hit back if its importers were made to suffer.

The spokesman said:   “For us trade policy is not a zero sum game.  It is not about winners and losers.  We here in the European Union believe that trade can and should be win-win.

“We also believe that while trade has to be open and fair it also has to be rules-based.  The European Union stands ready to react swiftly and appropriately in case our exports are affected by any restrictive trade measures by the United States.”

(“Brussels prepared for trade war with US if it restricts EU imports,” Daniel Boffey, The Guardian, 29th January, 2018).

There is an assumption in the United States that America is the biggest trading power in the world and can dictate to others when it comes to trade.   This may not be the case.

“The adjusted GDP of the 28 EU member nations is bigger than both China and the US, the traditional list of world’s economic super powers.

“In nominal U.S. dollar terms, the European Union (plus Norway, Switzerland, Iceland) accounted for 25.4% of world output in 2014 according to data from the International Monetary Fund.  That was greater than America’s share (22.5%) and well in excess of China’s—13.4%,” said Quinlan.

(“Europe is bigger than the US”, Bob Bryan, Business Insider, 30th June, 2015).

These facts will have changed in the 2 ½ years since this was written. When the United Kingdom leaves the European Union next year, the figures will need to be further adjusted.   But the figures do convey that the US, the EU and China are each roughly on a par when it comes to the size of their economies.

What is not conveyed here is how powerful the European Union is through its trading agreements.   Whereas the US has twenty major trading partners, the EU has eighty.   These countries will all likely side with Brussels if a trade war worsens.

Nobody is likely to benefit from a trade war.   The latest tariffs the US imposed on Chinese washing machines, for example, will increase the cost of purchasing a washing machine in the US.   This will apply to thousands of products as tariffs are increased by all three economic powers.

There’s a lesson from history here.  The Smoot-Hawley Act, passed by Congress in 1930, raised tariffs on over 20,000 items imported from other countries.   One side effect was that US trade decreased by over 50% increasing unemployment.   This period became known as the Great Depression.

The first shots have been fired in a new trade war.   It’s not likely that the US will come out ahead here, certainly not in the long term.   Putting “America First” will mean the rest of the world coming together in a renewed commitment to globalization, leading to the new global economic system predicted in Revelation 18.

Note the following just after Angela Merkel’s speech to the World Economic Forum in Davos:

“German Chancellor Angela Merkel insisted on Wednesday “protectionism is not the answer” to world problems, addressing the Davos economic summit before US President Donald Trump appears to defend his “America First” agenda.

“We think that shutting ourselves off, isolating ourselves, will not lead us into a good future.   Protectionism is not the answer,” Merkel said in a speech in the Swiss resort.

She spoke a day before the arrival of the US president whose aggressive trade policies have raised concern among defenders of globalization.

“Let us not shut off from others, let us keep pace with the best in the world and let us canvas for this multilateral approach,” Merkel said.”

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Headline in WIN (World Israel News)

German FM in Israel rejects US Jerusalem move, warns of European ‘frustration’ (1st February)

During a visit to Israel, German FM Sigmar Gabriel blasted those who oppose a Palestinian state, demanding a two-state approach to the Israeli-Palestinian conflict.

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DARKEST HOUR

We went to see “Darkest Hour” recently.   Although not perfect, the movie is a fairly accurate attempt at showing what Winston Churchill was up against when he suddenly became Prime Minister in May, 1940.  Forgotten now is how close Britain came to being invaded by Hitler’s armies.   The future of the world depended on what was to follow – if the UK had fallen, other nations would have had to sue for peace on Hitler’s terms.   Those “other nations” included the United States, which was totally unprepared for war in 1940.

Britons like to say that they “stood alone” against Hitler.   Certainly, in Europe that was true.   But forgotten now is a simple fact:   at the time, Britain ruled a quarter of the world’s people.   All these nations fought with Britain.   Two and a half million Indians were in the British Army, plus hundreds of thousands of people from Africa and the Caribbean.   Additionally, the British dominions (Canada, Australia, New Zealand, South Africa and Southern Rhodesia) played a major role.

In the event of another threat to Britain, none of these countries will be likely to come to her aid.

Watching the movie, you can also see clearly the similarities with today.   Whereas, in 1940, Britain was faced with an enormous military threat from Germany, today it’s an economic threat – from the German dominated EU.   As the Brexit negotiations continue, the EU has the advantage, because the Brits are allowing them to.  There seems to be a lack of backbone in standing up to Brussels, Berlin and Paris.  The FT’s Philip Stephens today described the mess as “Britain’s nervous breakdown.”

Sadly, there is no Winston Churchill waiting in the wings!

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Note the following headline from the British Daily Express newspaper following an incident were young leftists stormed the Churchill café, screaming that Churchill was a racist.   Nigel Farage is the man who led the Brexit campaign.   Churchill was an Empire-loyalist, an unforgiveable sin in today’s Britain!

“Nigel Farage TEARS APART ‘pig-ignorant’ lefty gang who terrorized Churchill café.  NIGEL FARAGE aimed a furious tirade in the direction of a group of protesters who burst into a Winston Churchill-themed cafe in London while chanting Britain’s wartime leader was a “racist.”

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TRUMP’S AFRICA

You will remember that Donald Trump reportedly described African countries as “****hole countries.”

At least two countries on the Dark Continent are capitalizing on this.

Namibia is promoting tourism with posters proclaiming that “Namibia is Africa’s Number One ****hole country.”

Namibia is not the only country to take advantage of Trump’s words.

According to the Wall Street Journal yesterday, “A Facebook page run by a marketing group promoting tourism in Zambia – famed for the Zambezi River that feeds the spectacular Victoria Falls – includes a slogan welcoming visitors to “****hole Zambia.”   “Where beautiful vistas and breathtaking wildlife are our Trump card!” says an accompanying post.

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FOR FUN!

Some entertaining posts on FaceBook . . .

 

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DAVOS, BYZANTIUM AND RUSSIA

Joseph-Stiglitz-003

“Median income today is lower than it was a quarter century ago,” according to economist Joseph Stiglitz, interviewed by CNN’s Richard Quest at the World Economic Forum in Davos, Switzerland.   The two men were discussing the charity Oxfam’s statement this week that said the top 1% now have as much wealth as all the rest of us put together. According to Mr. Stiglitz, this is due to government policies in the US and other western nations in the last 25 years.   His prediction for the coming year was quite gloomy.

John Defterios, CNN Emerging Markets Editor, reminded people that the global economy has 7-8 year “cycles.”  Whereas many are saying we just came out of a cycle following the 2008 collapse, we are in fact ending one cycle and moving into another.

The 7-year cycle will be a familiar concept to any Bible scholars who understand the Old Testament financial cycle, based around the seven-year land Sabbath.  Debt, both governmental and private, is now at an all time high and threatens the global economy, which is nothing more than a house of cards.   Increasingly needed is a biblical Jubilee Year, where all debts are cancelled and we start over.  God’s plan was for a Jubilee Year every fifty years, after seven land Sabbaths had been completed.

Leviticus, chapter 25, explains this financial plan.  The instruction was that all debts be cancelled and that people return to their ancestral land and start again.  We no longer live in an agricultural economy, but the principle can be applied.   The vast majority of people worldwide are now in debt to one degree or another, while the 1% gets richer and richer.  Eventually, there will be an explosion with revolutions everywhere, unless something is done to cancel the debt.

Don’t hold your breath — governments and banks are not likely to let that happen.   Until they have to, that is!

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Meanwhile, I found Leonardo DiCaprio’s statement that “oil should stay in the ground” rather intriguing.  If conservationists get their way, how will he fly his personal plane?  He may have money to burn but it’s not a good jet fuel!

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I’m finishing The End of Byzantium, the book by Jonathan Harris I mentioned in a previous post.   Constantinople, the capital of what had been the greatest power in Christendom, fell to the Muslim Turks in May, 1453.  The fall sent shock waves throughout Europe.  The next 250 years was to be dominated by the threat from the Ottoman Empire, which did not completely end until the collapse of the empire less than a century ago.   This was the last caliphate.

There are lessons to be learned from Byzantium.

There was great division at the top among the various leaders.   We have this today with the presidential candidates, each one looking for his or her own advantage, regardless of what damage may be done to the country.  That was the same in Byzantium amongst the ruling class.

Secondly, some of the wealthy elite did well from their connections with the Turks, mostly in trade, but also donations to co-operate with the Turks.  Reading this, I was mindful of the Clinton Foundation receiving donations from Middle Eastern leaders, a conflict of interest for sure.

Thirdly, Byzantium was weakened financially, losing its trading advantage to other nations.   The Republics of Venice and Genoa had become the banking centers by the time of the fall of Constaninople.

A fourth point of great interest was that once the capital fell, it wasn’t long before the rest followed.   Could this happen in the US?  Of course it could.  If terrorists could deliver crushing blows to both Washington DC (the political capital) and New York City (the financial capital), the rest of the country would follow.

I should add that although I would have preferred life under the Byzantine Emperor to life under the Ottoman Sultan, the former was hardly Christian and thoroughly deserved its fate.  That’s another lesson for us today – the West deserves its fate, which it has brought upon itself.

A further lesson from Byzantium is the truth of Daniel 2:21, that God is behind the rise and fall of nations.  “And He changes the times and the seasons; He removes kings and raises up kings.”  In this case, Constantine XI, the last Emperor of the Eastern Roman Empire, was overthrown by Mehmed II, the Sultan at the head of the Ottoman Empire.

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Talking of Washington DC, the news yesterday was dominated by the threat of a severe snow-storm bringing the city to its knees.  It still hasn’t started, at 10am Friday morning, but could come any time.  MSNBC stated that, every time there’s a severe snow-storm: “230,000 federal government workers sit idle.”

Since when did this have anything to do with snow???

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Back to Turkey and the Middle East.  Up to this point, Islamic terrorism has been perpetrated by Sunni Muslims.  With the end of sanctions on Iran and the release of hundreds of millions of dollars being held by western banks, Iran could also be in the terrorist business.  Shia Islam could be an even bigger threat than Sunni.

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Still in the Middle East, more German Jews are moving to Israel as a result of increased anti-semitism in Germany.   Headlines can be misleading.  The anti-semitism does not come from German Germans, but from Muslim immigrants.  But it still makes life in Germany worrying and unpleasant.

The influx of migrants has affected many European countries.  Sweden is now being called the “rape capital of the world.”  Swedish women have a 1 in 4 chance of being raped.   Reports say that gangs of young Middle Eastern men grope, sexually assault, and rape women.   Where are the women and children we were being shown on nightly television a few months ago?  It turns out that 80% of migrants were young men, who left their families behind in war-torn Syria and other countries.   The outcome is not surprising.

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An article by Boyd D. Cathey contains the following, in defense of President Putin:

In support of his goals, Putin has championed Russian laws that:  (1) have practically outlawed abortion in Russia (no abortions after the 12th week, and before that time in limited cases, and also the end of financial support for abortions, reversing a previous Soviet policy); (2) clamp down on homosexuality and homosexual propaganda –absolutely no homosexual propaganda in Russian schools, no public displays of homosexuality, with legal penalties imposed for violating these laws; (3) strongly support traditional marriage, especially religious marriage, with financial aid to married couples having more than two children; (4) have established compulsory religious instruction in all Russian schools (including instruction in different Christian confessions, in different regions of the country); (4) implement a policy instituting chaplaincy in Russian military regiments (and religious institutions now assist in helping military families); (5) have made religious holidays now official Russian state holidays; (6) have instituted a nationwide program of rebuilding churches that were destroyed by the Communists (the most notable being the historic Church of Christ the Saviour in Moscow); and (7) officially support the Russian film industry in producing conservative religious and patriotic movies— interestingly, the most popular film in Russia in 2009 was the movie “Admiral,” a very favorable biopic of the leader of the White Russian counter-revolutionary, Admiral Aleksandr Kolchak, who was executed by the Communists in 1920.  The film was supported by the Russian cultural ministry.”

Since the fall of the USSR in 1991, Russia has built 26,000 new Christian churches.   As the writer points out, Russians are returning to (traditional) Christianity at the same time that Americans are turning progressively against it, embracing secular and anti-Christian values.

Thirty years after Ronald Reagan, we see a Christian Russia opposed to a post-Christian America (President Obama’s description of the country).   No wonder people are confused – the world has been turned upside down in our lifetimes!

Further evidence follows below:

jobs