World Debt Explodes: $30 Trillion In 5 Quarters. Trump’s Trade War has a deeper agenda than the obvious. Central Bankers “Don’t worry, we will just sterilize the credit growth” Doug Noland Q2 performance update call https://mwealthm.com/q2-tactical-shor…
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World Debt Explodes: $30 Trillion In 5 Quarters - McAlvany Commentary 2018
Transcript
Welcome to the McAlvany eekly commentary. I'm Kevin Orrick along with David McAlvany. This week Trump met with Putin. Yeah it was interesting to listen to the different remarks of course the left to the press on the left. They already had their remarks prepackaged. They were incensed that it was a horrible treason that you had actually FOX NEWS You said you were watching and Fox which would normally come across conservative. There were a few of those that were incensed sense there. We talked about that last night that I went home and my wife said you know this is really confusing because you've got the left who are completely trashing what Trump said but they do that all the time. You've got the right who are uncomfortable agreeing with or endorsing him but they're uncomfortable with looking like they're the lead. And then you have the people in the middle who are going What the heck is Trump doing. He seems to be doing politics in the form of trade sanctions whatever but there seems to be something under the surface whether he means that or not there's politics being played out that may have more to do with geo politics and strategic types of things that are masquerading as trade tariffs. What do you think. I think sometimes people are uncomfortable with the way other people make decisions.
And you know if you happen to be one of those people that sort of in your head and you think about things and you process things rationally and you need to connect the dots for things to make sense to see the process involved give me evidence show me proof what are your bona fides. Ok now I can agree in a sense then that is one way of processing information and making decisions. Another is where people just feel a certain way. And I tend to see this as again maybe more of an MSNBC and the left leaning. There's a certain degree of compassion that is built into liberal mindset where you just say hey it's for the people it's for the children it's for the whatever it is but the plea doesn't necessarily have to be according to statistics and numbers. Sometimes it's very rational but often the base is not rational. The motivation underlying is this heart related thing. I think what irritates everyone is that when someone operates at a gut level the way Trump does it's neither heartfelt nor rational. It's not necessarily irrational and it's not necessarily heartless but when someone is operating at a gut level it's just confusing and awkward for everybody and it seems there's an awful lot of success that seems to be coming from this right now. And I'm wondering if the confusion that he puts out when he talks isn't working in his favor. I mean what did he say. I think it is a part of this is again like let's match him up against Merkel. Merkel is highly rational highly process oriented a scientist a chemist before entering into politics and understand the sort of you know show me the process and then we'll come to a reasonable and rational conclusion and he's willing to just blow things up and mix things up.
Consider all of Europe as this massive complex very hard to move mix of people and cultures and sometimes objectives that aren't necessarily even compatible. You can't operate clean and fast in that environment. The whole euro project is mired in complexity all based on subtlety complexity and everything's got to be Rindo 50 different committees right. Right. Will Trump cuts through all that and just says I'm going to do what I want to do and I'm not looking for a committee and I'm not looking for approval and nobody has to agree and this is my way or the highway. And it's totally frustrating to those who are making decisions on the basis of committee. The reality is we have a strategic advantage in Europe because there is no committee approval process with the Trump White House for it at night. I'm not arguing that his policies are pristine or perfect. I'm not but I'm saying that there is a strategic advantage to someone who's willing to make a decision and even if they make the wrong decision then go back and very quickly fix it as opposed to being lost in you again the complexity that is the Eurozone. Well let's go ahead and look at that with Asia because he is doing things with Asia right now that probably are accomplishing goals that are beneath the surface of trade tariffs. OK so let's just talk about this trade war first. These are just little token gestures. You know twenty five billion here 50 billion there. Now it's getting to be real money but is it really about trade or is it about China asserting itself a little bit too much and Trump standing up straight raising his chest and pushing them to the back of the ring.
Yes the trades the talk of the town that's where the focus of the conversation is a few weeks ago 50 billion. Twenty five percent tariff on a certain select number of imports into the United States or exports from China which is meaningless. That is the terms of total quantities yet 200 billion now on the table at a 10 percent tariff which seems to miss the bigger issue. And I think this is geopolitics really in the guise of economics. And again this is where if you get lost in the language of a trade war you might miss something that is happening here because if we want.
