Source: The Hill
I’ve been waiting to see this one, so I’m hopping on it as soon as it’s reported. As above. Go read the article, and see that the previous high in the trade deficit was in 2008. During our last crisis.
Coincidence? No. As the night follows the day. A predictable outcome based on standard Keynesian macroeconomic theory.
I don’t mean to keep harping on this, but if you think that President Trump’s trade policies made any sense, to anybody with a graduate degree in economics, you’re (almost entirely) mistaken. I never even did macroeconomics professionally, and even I could see that fomenting trade wars was not a useful trade policy. Great way to vent your anger, sure. But nothing approaching the smart and detailed industrial policies of our Asian rivals.
It was just, well, dumb. And if you’re surprised by that, then you’re surprised by that. Because, probably, you’ve never looked at what a seemingly successful trade policy looks like.
And I know that your standard Republican probably spits at the word Keynesian, but that’s because nobody every bothers to look up what Keynes himself actually said.
So, a couple of quotes, to get oriented.
“Lenin is said to have declared that the best way to destroy the Capitalistic System was to debauch the currency. . . Lenin was certainly right. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million can diagnose.”