Posted on 07/13/2018 6:39:34 AM PDT by GonzoII
•As trade tensions continue, Mohamad El-Erian, chief economic advisor at Allianz, says the U.S. "will win the trade war."
•Investors have been on edge with some fearing that Trump has gone too far with his nontraditional negotiating tactics.
•"One of the upside risks, is that you may end up changing, the global landscape in a way that favors the U.S.," he says.
As trade tensions continue, Mohamed El-Erian told CNBC that the U.S. is winning the trade war.
"In relative terms, we are winning and we will win the trade war," El-Erian, chief economic advisor at Allianz, said Monday on "Fast Money." El-Erian is considered one of the most influential financial market thinkers in the world.
"Just look at the performance of U.S. markets relative to China and relative to others," said El-Erian, who was CEO of Pimco. "That is consistent."
President Donald Trump first proposed tariffs in March to correct what he deemed were unfair trading practices. Last week, the administration imposed duties on $34 billion worth of Chinese goods. Beijing immediately retaliated with tariffs of its own and accused the U.S. starting the "largest trade war in economic history."
Meanwhile, investors have been on edge amid the trade tensions. All three major indexes closed up Monday, leading some to conclude that trade fears are waning.
"The tit for tat continues, but ultimately it doesn't lead to a full-blown trade war," El-Erian said.
"When people realize that at the end of the day, the U.S. will prevail, because [China] is a less open economy, because [the U.S.] is a more dynamic economy, that ultimately you may end up in a situation where the U.S.' position in global economic terms is better off," he said.
(Excerpt) Read more at cnbc.com ...
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“I’ve followed interviews and commentary by El-Erian for several years”
He is world-class savvy. The son of an Ambassador, he was raised in the US, Egypt, France and the UK; with his Masters and Ph.D. in economics from Oxford. He was among the most successful investors in the world, as CEO of PIMCO, and its co-chief investment officer with legendary investment manager Bill Gross. When he speaks, people listen.
•”One of the upside risks, is that you may end up changing, the global landscape in a way that favors the U.S.,” he says.”
Cue Captain Obvious.
Another thing which is seldom mentioned is the tax revenue flowing in from these tariffs. Countries which do not want to make their separate peace with the United States will soon be providing ongoing tariff revenue, particularly in cases where they are still competitive even with the tariffs.
This could pay for more tax cuts, increase in the standard deduction and/or increase in the personal exemption, which is probably the best place to start because this is where it will be felt most quickly at the lower end of taxpayers. “
Yup!
Notice Trump lowered income taxes FIRST, THEN raised tariffs. Smart.
More middle income tax relief coming...
And when dhimmies cry “how you gonna pay for it”
The answer: More tariffs!
I don’t necessarily think he’s on the conservative side, but he addresses economics without the MSM political filter. Even the media’s lies are simply the liberal political means of coercion.
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