As the back and forth frightens investors, the American president exposed his point of view this morning in a couple of tweets.
“We are not in a trade war with China, that war was lost many years ago by the foolish, or incompetent, people who represented the U.S. Now we have a Trade Deficit of $500 Billion a year, with Intellectual Property Theft of another $300 Billion. We cannot let this continue!
“When you’re already $500 Billion DOWN, you can’t lose!”
I’ve long wondered how in the world Donald Trump lost money running a casino. The answer is now clear.
Larry Kudlow, who is the new chair of the terrible White House National Economic Council, asked about his boss’ online comments this morning, seemed stumped and said, “I’m not sure what exactly he’s referring to.”
There’s a lot of that confusion going around.
While I understand the president’s tweets get too much attention, the economic and trade developments hold great international importance, so Trump’s willingness to explain his thinking on the subject truly does count on a substantive level.
Keeping this in mind, let’s discuss everything we’ve learned this morning.
The president claims there was already a trade war between China and the United States, and we lost. Trump alludes to our $500 billion trade deficit with China to prove his point.
The problem is, President Orange Racist still doesn’t understand what a trade deficit really is; the actual deficit is not $500 billion, and suggesting that a trade war stems from this is demonstrably ridiculous.
Remember, Donald Trump has taken a strong interest in the subject, and he’s had plenty of time to learn the basics. For whatever reason, the idiot has refused, clinging to his misguided assumptions instead.
And then there’s the gem: “When you’re already $500 Billion DOWN, you can’t lose!” We’re not really “down” $500 billion – that number is wrong and it’s not how trade deficits actually work – but even if we accept Donald Trump’s false claims, logic gets in our way.
Trump is making very important decisions with worldwide consequences. If he’s making his choices based on his own ignorance – and that’s exactly what is happening – it is the public that will suffer the consequences.