The only rule that exist is that ‘America must always win’…
Since his election victory, many people have pointed out, that Donald Trump is the most dangerous man in the world. They’re wrong, because that dangerous man is actually Peter Navarro.
Navarro is Trump’s trade guru. He’s the author of books such as Death by China, The Coming China Wars and China: Why Don’t We Just Nuke ’Em? He’s also been described as selling “dodgy economics”, “alarmingly ignorant”, “astoundingly ignorant”, “misguided” and “dangerous”.
Navarro’s primary idea is that countries like China, Japan and Germany have rigged the trade system against the US. Their large export surpluses are the result of currency manipulation and other tricks.
Actually, the Navarro-Trump opinion is that exports are good and imports are bad. The goal of America’s trade policy should be to maximise the former and minimise the latter.
The problem is that , experts have pointed out, that this kind of mercantilism does not make sense, because it is nice to have a strong export, but import is also important, especially because they make roducts cheaper for consumers.
However, what is even more worrying than Navarro’s banana economics are the measures that he and Trump are preparing to undertake.
Thanks to Navarro, the Trans-Pacific Partnership is dead, taking with it hundreds of billions dollars in potential economic gain. The proposed US trade agreement with the EU may also fall, along with the NAFTA deal, between the United States, Canada and Mexico.
Experts warn: Navarro influence on Donald Trump is more than you can imagine, and his ideas, one after another, are causing more damage to the US and the world economy, than can be imagined.
In their economy, isn’t just about tariffs. It’s about certainty. The only rule they respect is that ‘America always wins’.
And, this is the reason why Navarro’s ideas are not just nonsensical, but hideously dangerous. But, not in Trump’s world – there, the White House will dictate the rules, “writes capx.co.