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Jan
24

Trump and trade

Post By gaia1 in American Monetary Matters

 The Trump Administration, for whatever clear and dark reasons, wants to shake things up including scrapping the PTT which took place on January 23 as fulfilling one of his ill-founded promises. This would isolate the USA and pursue an America First strategy which in this globalizing world will not work. The Jared Bernstein’s New York Times article  at https://www.nytimes.com/2017/01/24/opinion/ditching-tpp-wont-solve-the-trade-deficit.html and its comments shows where the present thinking is on trade, currency and export facilitation. I wrote the following comment on the article:

 If Mr. Trump really wants to be a transformative president who would take of Americans and other people he could at least pursue two interrelated policies. Replace the WTO with the UN Conference on Trade and Development and pursue an enlightened international monetary policy.

That monetary policy would consist of two radical steps: move the U.S. dollar as international transaction currency towards an enhanced SDRs which, through challenging international negotiations, can be replaced by becoming part of a carbon-based international monetary system with its monetary standard of a specific tonnage of CO2e per person. The conceptual, institutional, ethical and strategic dimensions of such carbon-based international monetary system are presented in Verhagen 2012 "The Tierra Solution: Resolving the climate crisis through monetary transformation" and updated at www.timun.net. Climate specialist Bill McKibben who will not be Trump’s best friend said about this system: The further into the global warming area we go, the more physics and politics narrows our possible paths of action. Here’s a very cogent and well-argued account of one of the remaining possibilities.” End of my NY Times comment

The Trump Administration with its many white billionaires are the least like persons to engage in such transformative thinking, let alone policy action. However, resistance is building fast and wide and the women’s marches in the USA and globally amounting to about 2 millions marchers is one evidence. Given the unrealistic economic and trade policies of the US, Americans and a great part of the world community will reap the sad fruits by another recession in the next couple of years. It is also possible that he and several of cabinet members may leave the scene before the end of his first term.