Jim Rogers “Making China Great Again” video is raising eyebrows.
Jim Rogers, the legendary investor, venture capitalist and also the creator of the Rogers International Commodities Index has taken to the stage again in a Jim Rogers “Making China Great Again” video.
Jim Rogers talks about how the current geopolitical developments could play out and what impact that is likely to have on your savings and investment portfolios.
“Making China Great Again” is what Mr. Trump is doing”
JIM ROGERS
Jim Rogers claim was made following the interviewer quizzing the seasoned investors about deepening trade wars and whether that validates his thesis that most of the western world economies are going to be struggling in the coming months and years.
“Mr. Trump is certainly making China great again every time the world turns around he is doing something great again which is not good for America but what is good for China and Asia” said Jim Rogers.
But China’s economic growth was already the slowest for 25 years back in 2016 before a protectionist Trump administration entered the Whitehouse.
So China’s economy was already following a downward trajectory before the trade war.
Moreover, Jim Rogers “Making China Great Again” through a protectionist US administration policy doesn’t hold water when you look at the latest macro data from China. Note also that the data out from China is heavily glossed.
Few economists in China questions the data for fear of being sent to jail for dissent. Xi Jinping keeps hundreds in prison for peaceful dissent.
“Mr. Trump is certainly making China great again every time the world turns around he is doing something great again which is not good for America but what is good for China and Asia”
JIM ROGERS
So the true extent of the fallout from a trade war on China’s economy is unlikely to be revealed
Nevertheless, the official (fake) macro data out of China indicates an already weakening investment in infrastructure and less exuberant spending by China’s consumers.
Jim Rogers “Making China Great Again” view was bolstered by the Trump administration’s decision to walk out of the Trans-Pacific Partnership (TPP).
TPP is now a defunct proposed trade agreement between Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam, and United States signed on 4 February 2016, which was not ratified as required and did not take effect.
After the US withdrew its signature, the agreement could not enter into force.
So what then followed is that the remaining nations negotiated a new trade agreement called the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, which incorporates most of the provisions of the TPP.
“That left Asia for China” said Jim Rogers.
“The results are not good for America-he (Trump) is not helping America” claims Jim Rogers.
“a horrible deal” – Donald Trump, on the Trans-Pacific Partnership (TPP)
So why did Trump blow the TPP out of the water which supports Jim Rogers “Making China Great Again” view?
One of Trump’s “America First” policies was the withdrawal from the TPP.
TPP, a prosed free trade agreement by 12 nations which have their coastlines on the Pacific with approximately 800 million people living in these countries, and they make up 40 percent of the world’s GDP.
This agreement was intended to reduce or eliminate up to 18,000 tariffs on both agricultural and manufactured products, boosting trade, economic growth. Former President Barack Obama and other TPP supporters argued that the trade deal would have helped the US increase its influence over the Asia Pacific and simultaneously counter China’s influence in the region.
But Trump dubbed the TPP “a horrible deal” that took American jobs, decimated industrial towns to the benefit of multinational who set up shop in low labor cost regions.
So Jim Rogers “Making China Great Again” bolstered by the Trump administration’s decision to walk out of the Trans-Pacific Partnership (TPP) is not accurate, bearing in mind that the data suggests that the TPP cost US jobs.
“It has been ten years since the last bear market and historically we have had them more often than that. I suspect we are getting closure in 2008 ” – Jim Rogers
Jim Rogers “Making China Great Again” video then takes a time walk into the future.
“Do you see a 1970s style stagflation, or a 1930s style depression leading to global conflict, or do you see a swift collapse style scenario like the soviet union”, asked the interviewer.
“It has been ten years since the last bear market and historically we have had them more often than that. I suspect we are getting closure in 2008 we had a problem because of too much debt and the debt has gone through the roof everywhere in the world. People have talked about austerity but nobody has practiced austerity. So we are going to have a serious problem when the next one comes. The next bear market will be worst in his life, claims Jim Rogers. When the next one comes it is going to be worse than most because the debt is so much higher everywhere. Even China has debt now. In 2008 China had a lot of money saved for a rainy day. When it started raining they started spending money which helps save the world” replies Jim Rogers.
So there is a contradiction with Jim Rogers “Making China Great Again” video because when the west goes down it is going to drag everyone down with it.
China’s phenomenal economic success is based on an export model. A trade war is an assault on China’s economic model it also will leave everyone worse off as each side goes back and forth with retaliatory trade sanctions. The big question is how will China respond when its factories are no longer viable and millions of its people are laid off?
Will China then attempt to control its internal civil unrest with a more aggressive foreign policy, in other words, war? If your answer is yes then maybe that is the motive for a trade war.
Jim Rogers “Making China Great Again” video miss the point. Is the red dragon being deliberately tormented, coaxed by the bald eagle into a fight?
Jim Rogers “Making China Great Again” video.
