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Trump's incoherent comments on German autos
Posted on: May 27, 2017 at 11:30:40 CT
Knucklehead MU
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Trump is bashing German auto imports as "very bad".
He can't allege unfair trade practices because, for the most part they don't exist with regard to the European Union.
German exports benefit from the Euro. A stand alone German currency would have a higher value relative to the dollar than the Euro because the Euro is dragged down by Italy, Spain and others. So that does help German exports. But, by the same token, the Euro has a relatively higher value relative to the dollar than stand alone currencies would have for those countries. Hurting their exports.
You can't cherry pick the countries in the Euro for trade sanctions. Europe won't put up with it. It would be like placing trade sanctions on some US state because Mississippi and West Virgina are pulling down the value of the US dollar.
The Euro is a common currency for the member states, just like the dollar is the common currency for Alabama and Michigan.
One thing you can conclude with confidence, is that Trump "don't know much" about economics.
Trump's threat only makes sense if he views European countries as vassal states that will put up with unfair trade practices. He may be right. Are they vassals?
Edited by Knucklehead at 11:37:20 on 05/27/17
He can't allege unfair trade practices because, for the most part they don't exist with regard to the European Union.
German exports benefit from the Euro. A stand alone German currency would have a higher value relative to the dollar than the Euro because the Euro is dragged down by Italy, Spain and others. So that does help German exports. But, by the same token, the Euro has a relatively higher value relative to the dollar than stand alone currencies would have for those countries. Hurting their exports.
You can't cherry pick the countries in the Euro for trade sanctions. Europe won't put up with it. It would be like placing trade sanctions on some US state because Mississippi and West Virgina are pulling down the value of the US dollar.
The Euro is a common currency for the member states, just like the dollar is the common currency for Alabama and Michigan.
One thing you can conclude with confidence, is that Trump "don't know much" about economics.
Trump's threat only makes sense if he views European countries as vassal states that will put up with unfair trade practices. He may be right. Are they vassals?
Edited by Knucklehead at 11:37:20 on 05/27/17
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Trump's incoherent comments on German autos - Knucklehead MU - 5/27 11:30:40
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