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Trade Wars and the Economy: Trump's Trade War Leads Straight to Economic Collapse - by Alessandro Bruno

The United States and China have started a war. As with all wars, there will be victims. This one is no exception; economic collapse will occur before anyone can claim victory.

The sound of gunfire has not gone off yet, because the weapons of this war are trade tariffs. But the global economic hegemony is at stake.

The United States has engaged in a kind of “reverse” Pearl Harbor moment. In 1942, an ultra-nationalist Japanese leader launched an attack on the United States against advice from top officials that Americans would react—fiercely.

The Japanese dared, lost, and ended up waking the sleeping giant that would become the world’s sole superpower by 1990. The stakes this time are devastating in different ways.

Economic collapse doesn’t sound as bad as a world war with thousands dead and wounded, as well as destroyed infrastructure to contend withespecially because U.S. soil was never attacked in a major conflict.

Nobody should make the mistake of underestimating China’s ability to damage the United States, physically, socially, or—it goes without saying—economically.

Trump understands this—his advisors will have warned him. But many of his voters, and not without some justification, see China as the source and core of their economic woes.

Trump’s measures could send the world into chaos
The full Chinese retaliation has not come yet. So far, there are only hints of what shape it will take.

That said, American farmers will be taking a hit and you can expect your local gas station will be stocking more ethanol enhanced fuels.

Beijing has scrapped orders for over a million tons of U.S. soybeans due in August. It amounts to $14.0 billion a year in losses that many of Trump’s own supporters will have to endure. (Source: “North Dakota soybean processors hit hard by tariffs as China cancels orders,” CNBC, July 11, 2018.)

It’s always easier to blame an outsider for big problems rather than focus on insidious factors operating under your nose

Like all wars, the ones of the trade variety are easy to start. But they’re also harder to win. Those who start them may score big points in the battles, but will still fail to win them..

Read the complete report: Trump's Trade War Leads Straight to Economic Collapse

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