EU V USA trade war



Aghalissabeagh

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The appreciating value of the Euro is a bigger problem to be honest, against both the Dollar and Pound, although it does mean the vulture funds get a lot more bang for their buck bringing Euros back to Dollars.

Also the new tax cuts in America, is draining the Eurodollar from the system and so liquidity.

But first and foremost the ECB printing 80/30 bilion a month is the most dangerous, coupled with 0% interest rates, when that baby blows, it's gonna be a super nova of a recession.

And we will have the Troika back, this time on steroids, anything not nailed down will be sold
 

firefly123

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I know somehow this is actually the EUs fault.
 

owedtojoy

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"European Union officials unveiled an array of tariffs on Wednesday that they would place on American-made goods if the United States followed through on President Trump’s plan to impose penalties on imported steel and aluminum, raising the specter of a trade war."

https://www.nytimes.com/2018/03/07/business/trump-tariffs-eu-trade.html

With Brexit still not sorted this is the last thing that Ireland needs.
Pretty much the last thing anyone needs.

There has been a stuttering recovery, but in the last year the gains seems to be solid and there was growing confidence in the world economy.

This is basically an imposition of tax that will drive up the cost of goods in all countries and discourage investment.
 

owedtojoy

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The appreciating value of the Euro is a bigger problem to be honest, against both the Dollar and Pound, although it does mean the vulture funds get a lot more bang for their buck bringing Euros back to Dollars.

Also the new tax cuts in America, is draining the Eurodollar from the system and so liquidity.

But first and foremost the ECB printing 80/30 bilion a month is the most dangerous, coupled with 0% interest rates, when that baby blows, it's gonna be a super nova of a recession.

And we will have the Troika back, this time on steroids, anything not nailed down will be sold
Both the EU and the USA have been using quantitative easing for years now.

In fact it has payed off, and the world economy had come back into growth.

That is now in jeopardy.
 

McSlaggart

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Pretty much the last thing anyone needs.

There has been a stuttering recovery, but in the last year the gains seems to be solid and there was growing confidence in the world economy.

This is basically an imposition of tax that will drive up the cost of goods in all countries and discourage investment.
The problem is Thrump will want a 2nd term and this is the sort of thing that may get him voted back in.
 

McTell

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No
"European Union officials unveiled an array of tariffs on Wednesday ///.

Best for the EU to ignore him. On past form he will change his mind next week. He runs up these notions to see what reaction he'll get.
 

owedtojoy

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The problem is Thrump will want a 2nd term and this is the sort of thing that may get him voted back in.
The US and world economies are doing fine.

First Trump risks overheating the US economy with tax cuts, raising the risk of a stock market bubble, and ensuing crash. We had one wobble already.

Next, he is now basically imposing taxes and raising prices in the American economy, which may well spread to other countries. The effect in the US will likely be unemployment and economic stagnation. From Trump's own statements, he does not have a bull's notion how world trade works, but he has gone so far to let his top economic adviser resign on the issue.

So he seems to be serious - but of course, he has flipped flopped on immigration or guns, sometimes taking more extreme positions, sometimes not. But we have to assume he is serious.

The likely result is a return to a stuttering economy of uneven winners and losers, prolonged dissatisfaction and instability. Best hope - get rid of Trump by keeping him to one term (that is for the US electorate), or the other major world economies - China, Japan, EU, Canada, Brazil, India - freeze out the US, and increase free trade intercourse among themselves.
 

flavirostris

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Apparantly the Swedes are very worried about this since they are major steel exporters. Lofven went to the US on some kind of mission.
 

owedtojoy

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Apparantly the Swedes are very worried about this since they are major steel exporters. Lofven went to the US on some kind of mission.
There is a lot more to this than steel.

A lotta lotta companies use steel products - from ships to computers to cars to beer cans. And if other countries retaliate (and they will have no choice but to do so) then you are looking at rising prices, reducing exports and unemployment.

Trade wars easy? Easier to lose than to win.
 

Niall996

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Any idea what products are most likely to be impacted? Not that many people buy Harley Davidsons.
 

Trainwreck

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Any idea what products are most likely to be impacted? Not that many people buy Harley Davidsons.
Not a big deal for EU citizens. The EU already levies the world's highest and most wide-ranging tariffs as it is. That is why Trump threatens tariffs on things like steel, the EU responds with Harley Davidsons and peanut butter...

It is laughable every time the EU gets into a huff about other countries levying tariffs.
 

Aghalissabeagh

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Both the EU and the USA have been using quantitative easing for years now.

In fact it has payed off, and the world economy had come back into growth.

That is now in jeopardy.
Lots of Central Banks are QEing, the Swiss CB is now a giant Hedge Fund, you can buy shares in it. The Japanese one owns the most of it's stock market (about 80%)

It hasn't paid off, at least not yet, they still have to unwind their asset sheets, while removing liquidity, thats patting your head and rubbing your tummy stuff

I'd question the 'growth' bit too, QE has largely just inflated asset prices, and low interest rates have stifled growth
 

Aghalissabeagh

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Not a big deal for EU citizens. The EU already levies the world's highest and most wide-ranging tariffs as it is. That is why Trump threatens tariffs on things like steel, the EU responds with Harley Davidsons and peanut butter...

It is laughable every time the EU gets into a huff about other countries levying tariffs.
I'm fairly sure they quietly put a 38% tariff on Chinese steel pipes in the last few days.
 

HarshBuzz

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the EU are targeting companies based in swing states, an attempt to interfere in American elections,
The cheek of those EU dictators....standing up for the interests of their members. How dare they!
 


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