There is no global mechanism to stop countries from entering a competitive devaluation drive, and a US-China currency war could wreck the global economy.
While tight labour markets globally and the recent shift by central banks should provide a cushion, economists are starting to war game for how a recession could happen.
Mini deal will likely see no cut in 10% baseline tariff on Indian exports announced by Trump on 2 April, it is learnt, but additional 26% tariffs are set to be reduced.
India-Russia JV is also racing to deliver 7,000 more AK-203 assault rifles by 15 Aug. These are currently being made with 50% indigenisation and this will surge to 100% by 31 December.
Public, loud, upfront, filled with impropriety and high praise sometimes laced with insults. This is what we call Trumplomacy. But the larger objective is the same: American supremacy.
The US dollar is the world’s reserve currency. A store of value for central bankers. America’s twin deficits are financed by the rest of the world. Should the dollar begin to wobble, the US government will find it difficult borrow at 1.5%. President Trump is going against the sane advice of his senior most colleagues and advisers. The decision to levy tariffs on the remaining $ 300 billion of Chinese exports was tweeted even as a meeting with the Treasury Secretary was on and he was urging that this not be done. 2. Some import tariffs have been deferred to December, to afford relief to Christmas shoppers. A 3.1% fall on Wall Street in a single day was another cost Trump recognises. Plus the fear that a recession would harm his reelection prospects. The worst may not come to pass. We can pray that there is still some method to the great man’s madness.
The US dollar is the world’s reserve currency. A store of value for central bankers. America’s twin deficits are financed by the rest of the world. Should the dollar begin to wobble, the US government will find it difficult borrow at 1.5%. President Trump is going against the sane advice of his senior most colleagues and advisers. The decision to levy tariffs on the remaining $ 300 billion of Chinese exports was tweeted even as a meeting with the Treasury Secretary was on and he was urging that this not be done. 2. Some import tariffs have been deferred to December, to afford relief to Christmas shoppers. A 3.1% fall on Wall Street in a single day was another cost Trump recognises. Plus the fear that a recession would harm his reelection prospects. The worst may not come to pass. We can pray that there is still some method to the great man’s madness.