Tag Archives: protectionism

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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GROWING DIVIDE BETWEEN ANGLOS AND EUROPE

Jean Claude Juncker is the President of the European Commission, the executive branch of the European Union.   Clearly frustrated and somewhat dazed since the successful Brexit vote nine months ago, Mr. Juncker yesterday threatened to support secessionist movements in the United States, if President Trump continues to support the British Brexit.   He specifically mentioned Ohio and Texas.

As Ohio has no secessionist movement that I’m aware of, it shows that Mr. Juncker has little knowledge or understanding of the US.   If he had listed Alaska, Hawaii and California, along with Texas, he would have had more credibility.   All four states have vocal secessionist movements.

However, Mr. Juncker is not the only one who is ignorant of other nations a long way away.   Americans have very little knowledge or understanding of Europe.   The vast majority of people in the United States have never heard of Mr. Juncker.   As the president of the executive branch of the EU, which has more people and a bigger economy than the US, he is one of the most powerful people in the world.   If the European Union succeeds in forming a military alliance and acquires nuclear weapons, both of which are being discussed, he could be the most powerful man in the world.

What is becoming increasingly clear is that Ignorance on both sides of the ocean could easily cause the Atlantic alliance to unravel.

This has to happen to fulfill Biblical prophecies about the coming Beast-power in Europe and the fall of the English speaking nations.

Footnote:  Headline on tonight’s BBC World News America:  Germany Rejects US Pressure For NATO Spending Rise.

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GERMANY, JAPAN PUSH TRADE PACT IN MERKEL BID TO STYMIE TRUMP          (Bloomberg)

German Chancellor Angela Merkel and Japanese Prime Minister Shinzo Abe called for a concerted effort to defend free trade, expanding the list of economic powers joining together to counter the U.S. shift toward protectionism.   After clashing with President Donald Trump on economic policy at their first White House meeting, Merkel called for swift conclusion of a trade accord between Japan and the European Union.   That followed a renewed German-Chinese commitment to open markets on the eve of her trip to Washington and Merkel’s backing for a free-trade accord between the EU and Mercosur, the South American economic bloc. “Internationally, we are seeing a tendency toward protectionism and navel-gazing,” Abe said alongside Merkel during a news conference at the CeBit tech show in Hanover, Germany, on Monday.   “What we need is trade that’s both fair and free.”

The display of German-Japanese unity underscores a rift elsewhere among the world’s biggest economic powers after U.S. insistence on “fair” trade triggered conflict at a weekend meeting of Group of 20 finance chiefs in Germany.   Another potential clash looms when Trump, Abe, Merkel and the leaders of Canada, France, Italy and the U.K. meet at a Group of Seven summit in Sicily in May.   Merkel pushed back against Trump’s pledge to enact “America First” policies and drew contrast to Japan and Germany, the world’s third and fourth-biggest economies.

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THE MOST POWERFUL MAN IN THE WORLD

CNN’s special:   “The most powerful man in the world” profiled Vladimir Putin, partly in an attempt to show why he is so paranoid when it comes to the opposition.   His critics all seem to be found dead shortly after making their criticism.   The one-hour documentary was produced by Fareed Zakaria.   It was an interesting perspective.   Putin has more power than Trump, both domestically and internationally.   Russia also has more nuclear weapons than the US.

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REAL POSSIBILITY OF 4 FAMINES AT SAME TIME

Another famine is about to tighten its grip on Somalia.   And it’s not the only crisis that aid agencies are scrambling to address.   For the first time since anyone can remember, there is a very real possibility of four famines — in Somalia, South Sudan, Nigeria and Yemen — breaking out at once, endangering more than 20 million lives.

One powerful lesson from the last famine in Somalia, just six years ago, was that famines were not simply about food.   They are about something even more elemental: water.   If there was any doubt, the recent news from Somalia or Nigeria should erase it.  — Reuters.

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CANADIAN ANTI-SEMITISM

In a Friday sermon delivered at Dar Al-Arkam Mosque in Montreal, Canada, Jordanian cleric Sheikh Muhammad Bin Musa Aal Nasr cited an antisemitic hadith, according to which, on Judgment Day, the Trees and the Stones Will Call on Muslims to Kill the Jews.  The sermon was delivered on December 23, 2016, and was posted on the Mosque’s YouTube page. (MEMRI 3/31/17)

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WHAT’S GOING ON?     (Peggy Noonan, WSJ, 12/16/17, while President Obama was still in office)

“I close with a story that I haven’t seen in the mainstream press.   This week the Daily Caller’s Peter Hasson reported that recent Syrian refugees being resettled in Virginia, were sent to the state’s poorest communities.   Data from the State Department showed that almost all Virginia’s refugees since October “have been placed in towns with lower incomes and higher poverty rates, hours away from the wealthy suburbs outside of Washington, D.C.”   Of 121 refugees, 112 were placed in communities at least 100 miles from the nation’s capital.   The suburban counties of Fairfax, Loudoun and Arlington—among the wealthiest in the nation, and home to high concentrations of those who create, and populate government and the media—have received only nine refugees.”

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WORSENING SHIA-SUNNI CONFLICT

“ISIS Calls On Iranian Sunnis To Rise Up And Carry Out Attacks In Major Cities In The Country,   Warns Iran:   ‘Just As You Tasted Our Power In Iraq And Syria. , , , We Will Conquer Persia And Restore It As A Sunni Country” (MEMRI 3/28)

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MORE BRITISH BLESSINGS – WRITTEN BY AN INDIAN NATIONAL

This Quote is taken from the book The Politically Incorrect Guide to the British Empire by H. W. Crocker (Oct 21, 2008).

The paragraph is written by Dinesh D’Souza, an Indian who now lives in the United States.

“As someone who grew up in India, I often hear people ask, ‘What have the British done for us?’  Until I read this book, I didn’t have the full answer.   And here is Crocker’s answer:   ‘Apart from roads, railways, ports, schools, a parliamentary system of government, rights, separation of powers, checks and balances, the rule of law, and the English language . . . nothing!’”

Dinesh D’Souza, President of the King’s College and best-selling author of The Roots of Obama’s Rage

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RANSOM, Kansas — The Farm Belt is hurtling toward a milestone: Soon there will be fewer than two million farms in America for the first time since pioneers moved westward after the Louisiana Purchase.  (WSJ 2/8)

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MOST AMUSING LINE IN A TV SHOW

I don’t recommend the program, but Diane and I did watch the first episode of “Time after Time” on a Sunday night when there was no Masterpiece Theatre.   The new ABC show is based loosely (very loosely) on HG Wells’ book The Time Machine.   While showing his friends his machine in 1890, Jack the Ripper absconds in the machine to New York City in 2017, in an effort to hide  from the police who are looking for him.

After the usual Ripper murders in America’s financial capital, HG decides he needs to persuade Jack to return to Victorian London with him.   Jack responded with the following:

“Are you kidding?   In Victorian London I was a freak.   Here, I’m merely an amateur!”

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ATTITUDES HAVE CHANGED

A young manager at our local Kroger store complained to me recently that it was his birthday, yet he had to work.   He had also been required to work every day over the Thanksgiving weekend. He thought it was because he was the only manager with no children.  I suggested he start a family.   “No way.   The last thing I want is kids.”

There’s a number of young men roughly the same age at our local bank.   Every single one of them has their own apartment and is living with a girlfriend, as is the manager at Kroger.   I would assume that none of these relationships is platonic.

This illustrates a major problem that affects the western world – a low birthrate.

Previous generations believed God’s instruction:   “to go forth and multiply.”  (Genesis 1:22)

The West has a low birthrate and is making up for the short fall in people with seemingly unrestricted immigration from undeveloped countries in Africa, Asia and the Middle East.

People from these countries will radically change our society – but few seem to care.

Other nations are preparing for war.   We see it on the news all the time.   War is fought mainly by young men.   When the time comes, will we have enough young men?

I am reminded of another Bible verse from more than 2,500 years ago.   It could be speaking to us today.   “They shall commit harlotry, but not increase;  Because they have ceased obeying the Lord.” (Hosea 4:10)

Sexual immorality is rampant, but there are few children.   Children are a blessing, but few realize that in today’s western world.