Alternative Visions – 3 Strategic Trends: Trump-China Trade War Escalates; Global Debt Accelerates; Trump Tax Cuts Dissipate – 07.13.8

Dr Rasmus explains the relationship between trade wars, past and present, and neoliberal tax cutting and war spending policies: Trump 2018, Reagan 1985, Nixon 1971-73. What’s next after $34 billion in US tariffs on China this past week? Relative strengths and weaknesses of US and China in the pending trade war and potential tactics.  Rasmus reaffirms his prediction Trump is following a ‘two track’ trade war—one with US allies and another with China, and only China is potentially real. The role of domestic US politics in current trade disputes. A second topic of the show, i.e. accelerating global debt, is now $250 trillion and 3X global GDP, rising at$25-$32 trillion more a year. How global debt and US dollar exchange rates and central bank interest rates are related. The show concludes with review of recent data by the Institute of International Finance, confirming predictions by Rasmus that Trump January $5 trillion tax cuts for business and investors would result in lower US tax receipts, a diversion of tax savings to more stock buybacks, dividend payouts, and mergers & acquisitions—not investment, jobs, and wages. Projections of rapid slowing of US business investment and hoarding of Trump tax cuts.

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