2 Takes on Why China 'Wins' a Trade War with America

♠ Posted by Emmanuel in , at 12/29/2016 05:21:00 PM
The premise of Donald Trump's China-bashing rhetoric is that the United States still holds all the good [trump?] cards in the global economy. As such, it can pretty much do as it pleases to serve its own interests. Because of lackluster leadership by others, however, the United States has allowed others to take advantage of it time and again. So, Trump proposes to slap tariffs of up to 40-some percent on Chinese made products to level the playing field. [1] But what if the premise is wrong? Winter Nie of the famed IMD business school not only argues that China holds the better cards--it has more export markets aside from...
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Actually, Trump's Been Great for Mexico's Exports (So Far)

♠ Posted by Emmanuel in , at 12/26/2016 02:11:00 PM
Koreans and others are still doing alright in Mexico. Arguably even better in recent months. Let us first get an update on the state of Mexican exports to the United States--by far its largest export market. Buoyed by automakers setting up shop south of the border to manufacture automobiles and automobile components at significantly lower costs destined for the United States, it's become a key manufacturing hub for this industry. Consequently, Mexico is now the second-largest exporter to the US (China is tops) after overtaking Canada. To an economist, it simply makes common sense. To the isolationist-protectionist, bunker-mentality...
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Xenophobe Trump Needs Migrants to Hit 3% GDP Growth

♠ Posted by Emmanuel in , at 12/22/2016 02:11:00 PM
To generate growth, the US needs more rather than less people from abroad. The math is simple. Amidst the barely concealed xenophobia of Trump's presidential campaign, something is becoming more evident the nearer he approaches the Oval Office: His economic promises go against what's been found possible in terms of generating growth relative to employment. To begin, witness another of his "clash of civilizations," "us against them" type remarks after the recent Berlin attacks: President-elect Donald Trump characterized the gruesome truck attack on a Christmas market in Berlin as part of a systematic campaign by Muslim...
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Semi-Detached: The Architectural Roots of Brexit

♠ Posted by Emmanuel in at 12/09/2016 03:05:00 PM
Look closely enough and you might find the roots of Brexit. I almost forgot to post this interesting architectural analogy made in the Financial Times in the wake of the dreaded Brexit. With all sorts of thoughtful commentary of the "I knew this was going to happen all along" variety made referencing British history, this was the best of the lot. For instance, in 1534, Henry VIII famously renounced the Catholic Church and created the Church of England for the main purpose of facilitating his divorce from Catherine of Aragon. So, the 2016 Brexit was simply another move towards isolation from the continental cousins. This...
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No @#$%: China Stats are Admittedly Fictional

♠ Posted by Emmanuel in at 12/08/2016 03:47:00 PM
The incredible macroeconomic figures the PRC has released in recent decades year in and year out without fail beggar belief. Not only are they exceeding those of most other countries for extended periods of time, but they also show amazing regularity. Most of the time, they come out in line with forecasts made by PRC authorities. Now, however, we are seeing some changes behind the curtain. As the Communist leadership aims to produce more meaningful (read: more accurate) readings of its economic performance, the onus is on statistical authorities to fess up about overstated figures: China’s top statistician has acknowledged...
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Corporate Racket: Pretend to Leave Trump's USA

♠ Posted by Emmanuel in , at 12/04/2016 03:39:00 PM
Wave this in front of the dimwit Trump and collect lots of government money. US President-elect Donald Trump's avowed interest in keeping American jobs Stateside--no matter how misguided they may be--are nonetheless a lucrative opportunity for companies if they play their cards right. In the run-up to the dreadful day he actually takes office, there have already been a number of instances that may set the template for what follows. First, he has (wrongly) claimed credit for keeping jobs Stateside that weren't going anywhere, anyway: President-elect Donald Trump took to Twitter on Thursday night to say Ford Motor Co....
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