U.S. appears to be wanting to cut their own throats in trade war against China over North Korea
It is one thing to go to the United Nations to get support against a rogue nation like North Korea, and receive multi-lateral support in the implementation of economic sanctions. ¬†It is also somewhat viable for the U.S. to impose their own unilateral sanctions against Kim Jung-Un in response to their growing threat as a nuclear country.
However it is something else entirely to declare that you are ready to impose trade and financial sanctions against any country who might deal with North Korea. ¬†And sadly this is exactly what President Trump and his advisers are now calling for.
The United States is considering, in addition to other options, stopping all trade with any country doing business with North Korea. –¬†President Donald Trump
Yet besides just North Korea, the U.S. has embarked on a very dangerous path of using sanctions, tariffs, and even trade embargoes against anyone the President believes has an edge over America in the realm of global trade. ¬†And since the U.S. no longer has any real productivity, and relies heavily upon cheap imports from countries like China and Mexico, Washington is in essence cutting their own throat by threatening their creditors as well as the ones who provide most of the goods to the American consumer.
While wanting to Make America Great Again and promising to see a return of U.S. manufacturing is a very noble cause, the fact of the matter is as long as America puts its trust in central banks to administer monetary policies that have destroyed the purchasing power of the currency and has infused the economy with massive price inflation, no amount of re-engineering will see a return to the ‘good ole days’ of U.S. industrial dominance. ¬†And with this in mind, the President needs to tread extremely lightly in regards to our trade partners or the consequences could be both a complete embargo of trade, and/or a quickening of the East simply abandoning the dollar which would be catastrophic to the economy.
Kenneth Schortgen Jr¬†is¬†a writer for¬†The Daily Economist,¬†Secretsofthefed.com,¬†Roguemoney.net, and¬†Viral Liberty, and hosts¬†the popular¬†youtube podcast¬†on Mondays, Wednesdays and Fridays.¬†Ken can also¬†be heard Wednesday afternoons giving an weekly economic report on the¬†Angel Clark radio show.