White House trade along with manufacturing policy advisor Peter Navarro appears on Fox News to discuss the status of the U.S-China trade negotiations along with the reason for a USTR delay on some product tariffs.
Peter Navarro confirms what we noted via the office of USTR Robert Lighthizer yesterday. On December 15th “the tariffs will go on.” While the statement flies over the head of Stuart Varney, Navarro confirms the “next step” process which Lighthizer implied.
The U.S. stock market continues reacting to an unusual dynamic. 50% of all companies manufacturing in China are U.S. owned multinational corporations. Those companies don’t want tariffs to succeed in disrupting their supply chain. As a consequence those Wall St. Corps also don’t want lower U.S. Fed interest rates designed to combat China’s currency devaluation.
Normally Wall St. would certainly like lower rates (cheap money), however in This specific dynamic the U.S. multinationals are against the idea. Wall Street can be schizophrenic. Domestic U.S. companies benefit via the lower rates; however, currently, lower rates are adverse to the interests of the multinational companies.
the idea was Albert Einstein who aptly stated:
“The significant problems we have cannot be solved at the same level of thinking with which we created them.”
The same basic principle applies to those who are trying to understand along with evaluate current economic activity yet failing to disengage themselves via their historic economic frames of reference.
Minds who are framed around thirty years of financial/monetary political policy; intended to influence the U.S. economy along with created by vested interests who were building out the legislative priorities based on Wall Streets’ best interests; will struggle to understand the completely new landscape which can be entirely formulated to benefit Main Street.
There are two economic engines: Wall Street along with Main Street.
The two economic engines are divergent along with detached. Time (30+ years), along with monetary focus only on Wall Street interests (multinationals), pushed those two economic engines further apart. The same monetary policies which worked inside immediate past will not work inside immediate future.
We are currently inside economic space between both engines. The traditional cause along with effect (Fed) can be currently uncoupled. The administrators of the economy are perplexed; This specific can be unfamiliar terrain.
The exact same areas of the country which have gone through three decades of economic contraction are currently seeing economic expansion along with revitalization. The Fed policy which influences Wall Street was not, along with can be not, domestic centric. The fed policy was corporate driven monetary policy along with globalist in influence.
Until the two economies gain parity in value – any fed activity, taken as a consequence to their familiar traditional measurements (interest rates etc.), will have minimal to negligible impact on Main Street.