Notably, in April;Mr. Trump's Chairman of the Council of Economic Advisors," a guy named Stephen Miran". His blueprint for leveraging tariff threats, and the United States' role in global security and financial stability, has entailed extracting "burden sharing" from our allies and trading partners.
And to execute on that plan, notable Mr.Trump's "escalate-to de-escalate" strategy. It's working.
Suddenly, Trading partners sharing the burden is a base case deal: Accepting tariffs, opening up their markets, spending more on defense, buying more American goods, investing in U.S. manufacturing and buying our Treasuries.
Notable,Potential Japan deal is done. And of that Europe is near a deal, suprisingly (reported by the FT).
Mr.Trump and company have quickly drawn most of the world back into alignment with the U.S., using the U.S. consumer, U.S. financial stability and U.S. security as leverage.
With all of this in mind, it seems obvious that the only way to resolve the China problem (i.e. its multi-decade predatory export model) is through a globally coordinated agreement with trading partners, to put China in the global trade "penalty box" (to isolate China).
The question is, do these deals come with commitments to isolate China's economy?
And can Europe comply? After all, they have a 2 trillion euro budget to finance. And it's fair to say they expect to sell bonds to China.
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