Trade War: The Temperature Escalates

Trade War: The Temperature Escalates

Trade War: The Temperature Escalates.

Professor Farrokh Langdana discusses the implications of the Trade War.

The current Trade battle is mostly Tariffs and government bans on selected goods and services.  The next escalation—of there were to be one—would be on the dumping and outright rejection of US Treasurys.  Countries such as China that have historically enjoyed Trade Surpluses with the US have “recycled” most of the US dollars back by purchasing US sovereign debt (Treasurys).  If this recycling were to be interrupted, we would witness a new and vastly more detrimental chapter to this sordid global Trade War saga.

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