Monday, June 4, 2018

How Serious Was the G7 (minus 1) Statement Pushed Directly in the Face of Treasury Secretary Mnuchin Blasting US Trade Tariffs?

G7 finance ministers in Whistler, British Columbia over the weekend
Don't think for a minute the G7 (minus the US) statement issued over the weekend at the end of the finance ministers meeting in Whistler, British Columbia was routine.

 The statement ended with ministers requesting that Treasury Secretary Steven Mnuchin “communicate their unanimous concern and disappointment” because of Trumpian tariffs.

That is as in your face a statement as the G7 has ever made.

Michael McKee, international economics & politics reporter for Bloomberg TV/Radio, tweets:
The ministers are tools of crony-style globalists, but at least they want some global trade. Trump is moving in the direction of Herbert Hoover style shutting down of trade, which Hoover did when he was president.

Prediction: Trump is going to get more Hooverian.

As Secretary of Commerce, Hoover was involved in introducing subsidies for farmers. I expect Trump to initiate subsidies for farmers and other groups hurt by retaliatory tariffs.

...and so the Trumpian planned economy will continue to accelerate.

"Every step which leads from capitalism toward planning is necessarily nearer to absolutism and dictatorship."- Ludwig von Mises, Omnipotent Government.


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