{"id":68427,"date":"2024-05-28T10:49:23","date_gmt":"2024-05-28T15:49:23","guid":{"rendered":"https:\/\/olduvai.ca\/?p=68427"},"modified":"2024-05-28T10:49:23","modified_gmt":"2024-05-28T15:49:23","slug":"global-trade-war-looms-but-its-not-just-trade-war-to-fear","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=68427","title":{"rendered":"“Global Trade War Looms, But It’s Not Just Trade War To Fear”"},"content":{"rendered":"
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“Global Trade War Looms, But It’s Not Just Trade War To Fear”<\/a><\/h3>\n<\/header>\n
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History, Humility, and Wishful Thinking<\/strong><\/p>\n

The UK election and the \u201cI will protect you, but forgot my umbrella\u201d Tory campaign have both been shaken up by its pledge to bring back conscription for 18-year-olds<\/strong>. This is seen as a desperate gamble and sad joke by many commentators, and even ex-military leaders say it\u2019s silly to enroll unskilled, unwilling young adults when the armed forces need more equipment of all sorts, which the recent 2.5% of GDP defense spending pledge falls\u00a0very<\/em>\u00a0far short of. Yet the joke must also be on those laughing when the global backdrop is so very serious.<\/p>\n

Stop thinking about Friday\u2019s US PCE deflator data for a moment and look at the bigger picture<\/strong>. The main Bloomberg headline today is the G7 warning China over its trade practices. They want \u201cbalanced and\u00a0reciprocal<\/u>\u00a0collaboration,\u201d and will \u201cconsider taking steps to ensure a level playing field.\u201d The US is already going to let tariff exclusions on hundreds of Chinese items expire, and the EU may be leaning towards a high tariff on Chinese EVs. Elsewhere, China is asking South Korea to maintain stable supply chains, as it moves closer to the US, and even Brazil, Chile, and Mexico have recently raised tariffs on Chinese steel.<\/p>\n

In short, global trade war looms<\/strong>, and as Bastiat noted, \u201cIf goods don\u2019t cross borders, soldiers will.\u201d The problematic inverse is that even Adam Smith implied if some goods cross borders, soldiers\u00a0don\u2019t need to<\/em>, and others\u00a0won\u2019t be able to<\/em>\u00a0when needed.<\/p>\n

It\u2019s not just trade war to fear<\/strong>. China just finished a huge military exercise that clearly rehearsed a blockade of Taiwan and says it will no longer accept US congressional delegations to Taipei: one including the CEO of Nvidia\u00a0just opted to visit anyway<\/a>…<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

“Global Trade War Looms, But It’s Not Just Trade War To Fear” History, Humility, and Wishful Thinking The UK election and the \u201cI will protect you, but forgot my umbrella\u201d Tory campaign have both been shaken up by its pledge to bring back conscription for 18-year-olds. This is seen as a desperate gamble and sad […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,5],"tags":[19042,24135,24136,3222,862,4318],"class_list":["post-68427","post","type-post","status-publish","format-standard","hentry","category-economics","category-geopolitics","tag-global-trade-war","tag-michael-every","tag-rabobank","tag-trade-war","tag-war","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/68427","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=68427"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/68427\/revisions"}],"predecessor-version":[{"id":68428,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/68427\/revisions\/68428"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=68427"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=68427"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=68427"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}