Dismantling globalization, creating new alliances based on reciprocity, repatriating wealth, and blocking exfiltration

Trump at NATO

Sundance in the Conservative Treehouse brings us news from Germany today, starting with this headline. Germany Promises Lengthy Duration of Low Interest Rates – Laments Lack of Private Investment…

For all intents and purposes Germany is the EU, because German economic policy dictates the outcomes of all EU economic policy. So as the EU promises to engage in more central bank monetary printing (quantitative easing) simultaneously Germany promises to keep negative interest rates floating as long as possible.

Yes, the EU is in serious structural economic trouble; and that is likely the real reason why quivering Chancellor Angela Merkel has decided to exit the political stage before the larger communal catches on.

…the reality of President Trump’s trade policy demanding reciprocity is the wrench in the EU machine. The EU is a protectionist trade system with one-way tariffs and carefully crafted non-trade barriers designed to keep position as an exporter, and limit access to their market.

The historic cornerstone of this trade system to benefit the EU was the Marshall Plan; to apply tariffs on U.S. manufactured goods as a way to finance the EU rebuilding after World War II. Seventy-five years later that same unidirectional benefit still exists. This parasitic trade policy is what President Trump is changing.

Second, it is silly to watch the German finance minister lament the lack of investment into their economic system when these same politicians advance policies like: The Paris Climate Treaty, the Transatlantic Trade and Investment Partnership; in combination with high domestic tax policies against corporations and ultra-left-wing social benefits that necessitate the need for those high tax policies.

Gee, no-one wants to invest in Germany?… Go figure!

There is nothing the EU and China can do to stop the de-globalization process; and efforts to stimulate their economy, more quantitative easing (pumping money) while the global supply chains are being shifted, are futile.

The more a nations’ economy is dependent on exports, the more exposure they have to the inherent downsides of de-globalization. U.S. multinational companies that are invested in these nations will lose their investment over time; some rapidly. This will keep the stock market volatile, yet on Main Street USA the economy is thriving.

President Donald Trump has purposefully stalled the process of globalization, and is resetting global supply chains. This is bringing massive amounts of wealth back into the United States.

In essence President Trump is engaged in a process of: (a) repatriating wealth (trade policy); (b) blocking exfiltration (main street policy); (c) creating new and modern economic alliances based on reciprocity (bilateral deals); and (d) dismantling the post WWII Marshall plan of global trade and one-way tariffs (de-globalization).

Read more here.