In an amazing set of interviews that proves Obama to be the lamest of lame duck presidents, Trump Slams NATO, Slams Germany, and Floats Russia Nuke Deal.
Donald Trump called NATO obsolete, predicted that other European Union members would follow the U.K. in leaving the bloc, and threatened BMW with import duties over a planned plant in Mexico, according to two European newspapers which conducted a joint interview with the president-elect.
Trump, in an hourlong discussion with Germany’s Bild and the Times of London published on Sunday, signaled a major shift in trans-Atlantic relations, including an interest in lifting U.S. sanctions on Russia as part of a nuclear weapons reduction deal.
Quoted in German by Bild from a conversation held in English, Trump predicted that Britain’s exit from the EU will be a success and portrayed the EU as an instrument of German domination designed with the purpose of beating the U.S. in international trade. For that reason, Trump said, he’s fairly indifferent to whether the EU stays together, according to Bild.
The Times quoted Trump as saying he was interested in making “good deals with Russia,” floating the idea of lifting sanctions that were imposed as the U.S. has sought to punish the Kremlin for its annexation of Crimea in 2014 and military support of the Syrian government.
Repeating a criticism of NATO he made during his campaign, Trump said that while trans-Atlantic military alliance is important, it “has problems.”
“It’s obsolete, first because it was designed many, many years ago,” Trump said in the Bild version of the interview. “Secondly, countries aren’t paying what they should” and NATO “didn’t deal with terrorism.” The Times quoted Trump saying that only five NATO members are paying their fair share.
While those comments expanded on doubts Trump expressed about the North Atlantic Treaty Organization during his campaign, he reserved some of his most dismissive remarks for the EU and Merkel, whose open-border refugee policy he called a “catastrophic mistake.”
In contrast, Trump praised Britons for voting in 2016 to leave the EU. People and countries want their own identity and don’t want outsiders coming in to “destroy it,” he said. The U.K. is smart to leave the bloc because the EU “is basically a vehicle for Germany,” the Times quoted Trump as saying.
“If you ask me, more countries will leave,” he said.
Vehicle For Germany
Also consider Donald Trump Takes Swipe at EU as ‘Vehicle for Germany’
Donald Trump has taken his strongest swipe yet at the EU, labelling it “a vehicle for Germany” and predicting that other countries will follow Britain in leaving the bloc.
The president-elect also warned that his trust for Angela Merkel “may not last long at all”, ranking the German chancellor alongside Vladimir Putin as a potentially problematic ally.
Washington’s ambassador to the EU, Anthony Gardner, said last week that it would be “the height of folly” for the US to become a “Brexit cheerleader”. He also revealed that Mr Trump’s team had called EU leaders to ask “what country is to leave next”.
But Mr Trump appears ready to do exactly that, predicting that other countries would leave the EU largely as a result of its immigration policy.
“I believe others will leave. I do think keeping it together is not going to be as easy as a lot of people think. And I think this, if refugees keep pouring into different parts of Europe . . . it’s going to be very hard to keep it together because people are angry about it.”
Mr Trump told Mr Gove: “You look at the European Union and it’s Germany. Basically a vehicle for Germany. That’s why I thought the UK was so smart in getting out.”
BMW Border Tax
“I would say to BMW, if they built a factory in Mexico and want to sell cars in the US without paying a 35 per cent tax, then they can forget it. If they want to build cars for [export to] the rest of the world, I wish them all the best. They can build cars for the US. But they will pay a 35 per cent tax for every car they export to the US. What I am saying is that they should build their factory in the US.”
I agree with Trump on Brexit, NATO, EU, and Russia.
I strongly disagree with Trump’s trade policy. If every nation acts similarly, global trade will collapse.
Mike “Mish” Shedlock
John A Riedinger said:
There is too much time left. Boo
Joseph Constable said:
Trade will not collapse. Comparative advantage was the justification for “free” trade. That meant that countries that could produce something efficiently would increase their production by exporting it and that would increase jobs at home. It wasn’t meant that companies would move their production to low wage countries and export back to their home country.
And why should we allow American companies to export their pollution to China? Forget a wage equalization tariff. We need an environmental equalization tariff.
James K. said:
Excellent comment, particularly about the pollution. While Liberals at home twist themselves into pretzels to tax carbon and reduce greenhouse gasses, they are completely ignorant of:
A) The massive pollution caused by goods they buy everyday which are made in China and elsewhere with next to no environmental laws.
B) The massive pollution caused by shipping products to the other side of the earth that could have easily been made next door.
I cannot wait for the Trump border tax. Bring it on!
Michael Rudmin said:
I consider the possibility that global trade COULD collapse; but as one who watched my brother take extreme baseball-card trading losses (including theft), I do not hold that trade is always and automatically good.
If the trade regimens we have had are creating extreme poverty and political turmoil, that is a sign that the regimen is currently not good. If so, then it might be better to stop, take a deep breath, and start over. If that stop is in the form of a collapse in global trade, well… I am agnostic about whether it is good or bad.
That said, a collapse in globaltrade is often followed by world war — but I am more inclined to think that the second is a continuation of the first by the same evil actors, than to think the second is caused by the first.
“extreme baseball-card trading losses”?
Stuki Moi said:
Freedom was, and is, the justification for free trade. And free speech. And free anything else.
There is only one freedom. Childish, progressive attempts at petty classification notwithstanding.
People simply aren’t free, if they have to ask Massa permission, before deciding whom to buy a candle from.
Trump’s election was almost totally unforeseen by the status quo. Those who did see it as a possibility, like Gingrich and James Woolsey and tried to join up, did not foresee how ‘drastic’ the changes were that Trump was prepared to make. He really is trying to make difference. Hope he succeeds in some things.
Casual Observer said:
Brexit was the leading indicator. Things have never been the same since. No change will be drastic but I agree with the way Trump is going about things. Everything is a negotiation. That’s the first thing they teach you in Negotiation 101.
I would encourage Mish to spend some significant time in Mexico, China, India, Vietnam. Companies go there primarily to avoid the environmental, health and safety laws. Wages are rising in all of these countries and companies are staying for a reason
I would encourage you to do 2 things
2. read what I have said about pollution
“Wages are rising in all of these countries”
But the minimum wages in those countries are still much less that it would cost to house, feed and provide medical care for actual slave labor in the US, so the attraction remains much greater than just the environmental cost arbitrage.
Joseph Constable said:
An environmental parity tariff would make the US look like a savior of the world. Democrats would HAVE to be on board with it and Republicans be shamed for being against it.
It’s called “Cap and Trade”. Permissions would be traded to the trader’s benefit, and to the economy’s detriment. If countries had to live with the pollution they create, countries would be more inclined to produce necessities and durable goods, while producing fewer disposable goods.
I think the Europeans have us beat on environmental issues.
e.g. They went to lead-free electronic rules first.
Stuki Moi said:
An “environmental parity tariff” may allow a bunch of progressive apparatchiks to they are some sort of a useful species. And allow a bunch of lobbyists, political hacks and lawyers to skim off even more fruits of others’ labor. But that’s also all it will do.
Is it really so hard to recognize that pretending entirely arbitrary feelgood tripe like “environmental parity laws” have absolutely no fixed meaning at all? And that, due to this, picking winners and mandating losers on account of them, does nothing but empower the lobbying class who gets to “determine” who is good and who is bad? So that, instead of the spoils going to those who do something useful, they instead go to the aforementioned lobbying class? I know those are the same class that has also designed the public indoctrination system, but still……….
Confession: I was a reluctant Trump voter. But every day I become more & more convinced he was the right choice.
Problem is that his apparent policies seem to be aimed at disassembling the status quo. I’m thumbs up for that, but the globalists are not. The globalists are probably looking for for a marksman right now since none of their efforts have produced fruit.
Change is both painful & inevitable. A douchebag like Barack Obama was never going to do it. Might as well be DJT.
i wouldn’t give obama anything close to douche bag status.
BillyBob Texas said:
Tim, et. al., can y’all imagine what we would be feeling like- if Hillary had made it in? NO CHANGES from just about everything….more of the same old 8 – yr old crap.
Now I can understand why all the snowflakes are despondent…………
Yes sir, you’re absolutely right.
The Public has lost interest in political truths especially those of the CIA given the past history of this abusive organisation. Part of the USA problem is that there is a State within a State and the ‘intelligence’ community acts independently from congress and has become a danger to Americans – it is time for the President to rein them in but they will not like it – they know how to fight dirty – very dirty and subversively.
Its Ok to fight and prevent any damaging subversion of other competitive Countries but another thing to promote unnecessary war, regime change, torture and ‘cleansing’ overseas and also at the same time actively subvert USA independent thought questioning their acts.
Totally agree with you saruna the intelligence community has become a danger to congress and all Americans, but I’m not so sure the public is not interested. The public is being very much deceived by the MSM being in collusion with the intelligence community. This has been documented. The CIA just ignores congress and the president now.
Brennan just told the President-elect that he better “watch what he says”.
When congress found out about MKUltra and started to investigate, the head of the CIA ordered all relevant documents destroyed.
Donald could be a great president if he does nothing else but rein in the power of the deep state: the CIA, FBI, NSA etc. and return control of the nation’s destiny to those we elect. I think he realizes the dangerous position this puts him in, but he is enough of a patriot to take the risk.
I only vaguely knew about MKUltra attack on USA citizens (surely there must be something in CIA terms of reference to ensure public safety) , when an organisation is above the law bad things happen that the legal system and democracy is supposed to prevent. The total immorality of the CIA and probably any other organisation above the law is best seen overseas hidden from public view – or sanctioned by public and judicial disinterest, like the off the wall behaviour in the Phoenix program supported by the military (as is the current worldwide DNA project – wonder why?) –
These people have sick minds corrupted by their own arrogance free of Public controls and reserve the right to eliminate anyone that smells of dissent however innocent.
USA and Russia have a veto on UN authority and UN protection of human rights – that is the worst bad joke in the World of today.
Same situation exists in Russia with what was the KGB.
Trump is a major signpost that is becoming more and more bizarre.
“Make America great again” = “we would have healed Babylon but she cannot be healed.”
This is most bizzare because it’s what the UN is currently doing.
Trump said everyone will be covered under his new health care system that will replace Obamacare.
Puts an interesting spin on this:
I still think [as I have posted on Mish’s topics before] that Trump might be a modern version of the Babylonian governor of Gutium who defected to Cyrus. If so, NATO is indeed “obsolete.”
Like Tim, the main reason I voted for The Donald was to vote against the worst most corrupt candidate in US presidential election history. I am becoming more & more favorably impressed with Donald. He really does have America’s interests as his main priority.
Trump is rearranging the Press Room. Now the lame steam media is going to be competing with alternative news and bloggers among-st them. Competition for the truth.
Fred Rogers said:
Lets hope Trump’s media team tells the dinosaur press that they will no longer control seating arrangements at any news conference. The White House is supposed to be communicating with the voters / taxpayers, its not supposed to be protecting the media’s silly pecking order.
And I would hope they move the conferences out of the White House grounds — at least to the old exec office building, or over to Lafayette Square. Having media weenies coming and going is an unnecessary security risk for any president (even Obama). Get them off Air Force One also — unnecessary security risk, and plenty of ways to communicate with voters without the media.
Maybe the media will be forced to do actual investigative journalism instead of just pushing Hilary’s campaign talking points. That’s the media’s problem.
Trump needs to communicate with voters, that is the president’s job. Protecting the media’s status quo is not.
While Russia remains a nuclear power so does China, France, Israel, Pakistan, India, North Korea, and the U.K.
None of these countries is “Communist”.
All are “Capitalist”.
NATO no longer has a mission other than to facilitate arms sales and bring on WWIII.
NATO is not only not needed but has become a danger to world peace.
It would be better to kick Turkey out and replace their membership with Russia.
But the “War Party” made up of Republicans and Democrats want WWIII rather than change.
” NATO is not only not needed but has become a danger to world peace.
It would be better to kick Turkey out and replace their membership with Russia. ”
Ironically, shortly after Putin came to power, he said one day Russia might join NATO. As for Turkey, I had hoped Putin would restore the Byzantium empire.
I saved this news quote from 2000:
” Putin says Russia could join Nato
Independent, The (London), Mar 6, 2000 by Dominic Evans
VLADIMIR PUTIN, acting president of Russia, said it could one day join Nato but only if treated as an equal by the alliance.
Speaking on BBC’s Breakfast with Frost, his first foreign television interview since he took up his post in January, he said that, despite recent strains in Moscow’s relationship with Nato, it was difficult for him to view it as an enemy.
Asked if Russia ultimately could join, he replied: “I don’t see why not. I would not rule out such a possibility – but I repeat: if and when Russia’s views are taken into account as those of an equal partner.”
fedwatcher, China and North Korea are not communist? seriously?
May I advise you not to post comments when you have been drinking?
“Washington’s ambassador to the EU, Anthony Gardner, said last week that it would be “the height of folly” for the US to become a “Brexit cheerleader”.”
But it was okay for Obama to be the cheerleader for staying in EU while visiting the UK?
Talk about double standards. Political leaders are elected to make decisions, not to preserve status quo. Whether you agree or not. This guy might be changed soon, I believe…
Joseph Constable said:
The bluntness of Trump’s remarks actually shocked me and I thought I was fully prepared at all times for this. I am thinking a lot of Europeans are going to lose sleep over this. There should be some interesting reading tomorrow.
Then they deserve to lose sleep. If you read between the lines of what you have said then it would be realised that EU policy was tailored for approval by the (near) previous administration. That tells you what a bunch of crooked sleeze EU has as leaders. Roll it over, DJT is direct and the suckers on the continent have no defense from their own deluded conspiracies. I hope you are all watching out for your president elect is all, because I can tell you he will be facing off some of the most deranged beings that ever found their way to this planet. About the only thing Europe has left is its culture, and that is being slowly and purposefully washed down the drain. So there is some beautiful justice in the fact that an American is actually now pushing it to save it, and itself. It tells me that the last several years of noxious interaction at the least was not representative of the American public. Maybe we will find out of who or what it was sponsored by one day.
Trump is NO politician, his comments are WAY too blunt.
I’m lovin’ it. Politicians are disgusting.
If you can stand a long read I liked this from an interview with Ambrose Evans-Pritchard. A fairly balanced view of the World and economics as of 2012. Much more balanced than your average well paid politician but a bit short on the dangers of worldwide digital currency controlled by the chosen ones (chosen by themselves, naturally). Russia and China might paradoxically save us from elite privilege – but don’t count on it.
When he says BMW will pay a 35% tax, who the fuck does he think actually pays taxes?
Stuki Moi said:
Unfortunately, you are likely right, as far as the Orange haired Generalissimo’s understanding of economics are concerned.
Maybe the people who can afford to buy BMW-s !!!
Trump is absolutely right .
If it is not made here it should not be sold here ! ( do not take that literally )
BMW is not selling to middle class Americans. Perhaps you will be paying the tax. Haha.
Stuki Moi said:
And the solution to the middle class no longer being able to afford decent cars, is obviously to make decent cars more expensive. Trump and donors can afford them anyway, so why should they care, as long as they can tell the dittoheads to be happy with their overpriced clunkers, and the occasional serving of orange colored dandruff dropped on them from the reality show studio in the sky.
BMW is no more a “decent” car than a modern Chevy or Ford. If the 1% and the over leveraged soccer mom’s can’t bear to be seen in a Chevy then they just need to pony up that’s all. It’s time we started talking about “fair” trade instead of “free” trade.
Please – I have had it with fair trade stupidity
Stuki Moi said:
And fair is running to Massa to ban beautiful because you yourself are too ugly to get chosen at the ball, I assume?
In reality, Ford, Chevy and BMW all operate at some sort of competitive equilibrium right now. BMW charges a bit more, and some people find them worth the extra outlay. If BMWs were cheaper, Ford and Chevy would either lose more sales to BMW, or would have to lower prices themselves. In practice, they would do a little bit of each. As in, lower prices a little, lose a few sales to BMW. Conversely, if BMWs get more expensive, Ford and Chevy will do the opposite: Increase prices a bit, gain some more sales, since they face less stiff competition. So, what you have is millions of Americans stuck paying more for cars. All cars, not just the one El Tweeto chose to single out for harassment in front of his economically illiterate, captive buffoon brigade.
And Americans, rich and poor alike, being forced to pay extra for Orangegutang’s vanity displays, is just the immediate effect. By lowering the correlation between the cost of building a car and it’s sell price, while simultaneously increasing the correlation between the sell price and government intervention, car makers are incentivized to spend less on efficiency improvements, and more on influencing governments. So, less engineering, more lobbying, as the latter is now what drives profits.
And then, there all all those who depend on using cars. Whose numbers are orders of magnitude greater than those directly involved in assembling them. Every single one of their costs, are going up. Making every single company and worker in America that much less competitive compared to what they were before. A big reason America, despite the best efforts of idiots on almost all sides of the political isle doing the best to ruin it, is still a major startup hub, is that costs here are generally pretty low. Things are just cheaper, due to the efficiency of Walmart, low gas taxes, freer than in many other locales labor markets etc. With Trump now signalling he wants to follow Hugo Chavez’ way in economic policy, the general cost level faced by all those who may think of starting a company, will increase. While the immediate customers in their home market, will have less spare money to spend, since their costs are up as well. So, starting a company here vs elsewhere, will become less attractive. exactly as happened in Venezuela. And in Peron’s Argentina, and anywhere else where a self promoting tin pot Caudillo who thinks “the economy” is as simplistic as a reality tv show, has come to power.
Looks like life after Jan 20th is going to be interesting 🙂
Trump has iron balls that clang.
This is a guy who’s going to shake up the status quo and piss a lot of high rollers off.
What a hoot that he sat down for the interview with the Bild and the Times of London – implying a big middle finger for the US media. lol.
Be safe, Mr. Trump. Surround yourself with loyal protectors.
Unfortunately The Times is no better than your media. It’s main use is to frighten the horses. Let The Times publish and watch the status quoe and snowflakes melt.
It’s a great channel to create angst with.
A-holes. No time for them or the BBC or the Guardian or any of that other toilet paper.
Stuki Moi said:
“Trump has iron balls that clang.”
To go with an empty cranium, that clangs even louder.
With no political experience Trump had enough cranium power to defeat 16 seasoned GOP competitors in the GOP primary and the establishment’s darling Hillary who outspent him 2 to 1 in the presidential election.
Stuki Moi said:
That’s the benefit of having a large, empty space, with which to echo the indoctrinati’s inanities right back at them…
Seriously: For all I know Trump may even know how to, like, read and stuff. But popularity contests sure are a poor way of discerning “cranium power.” The entirety of the post Jefferson presidential canon attests to that.
So I take it you’re one of the ilk who’ll refuse to give Trump credit for any of his accomplishments.
Stuki Moi said:
The guy isn’t even in office yet. Tweet and Shout is hardly an accomplishment as far as grownups are concerned.
If Trump leaves government smaller than he inherits it, that will be an accomplishment. And the tax code simpler. Debt smaller, taxes lower, the share of purchasing power captured by the financial, legal, public sector, real estate and other rackets, smaller, fine. Until then, he hasn’t “accomplished” anything at all. Just made a bunch of noise. Mind You, he’s still infinitely preferable to HIllary, but so is a nationwide Ebola outbreak.
Ed Tew said:
Well then, how stupid are the democrats that ran Hillary?
BillyBob Texas said:
Ed…you have to ask that question…?
James Greenberg said:
“One Size Fits Germany.”
I do believe Trump reads Mish.
Fear not, Mish. I would not worry about Trump’s negotiating skills, which have been working so far. You start from an extreme position.
Every western nation has already been acting similarly to the US, which is why they are on the verge of a soveriegn debt big bang and economic collapse. Trump had nothing to do with it, can slow it down, can’t stop it, but should lay the foundation for freedom to rise from the rubble, instead of the Collectivist wet dream of global govt.
In the run up to the election, Trump said the US has done a terrible job of negotiating with other countries (very true) and he would fix that. What you are now seeing is the prelude to the negotiating process restarting. A real negotiator understands exactly what he is doing, but the clueless are getting freaked out. Don’t worry, the adults in the room (the other countries) understand this. Of course what they tell the public may be something else entirely, the game won’t work if everyone understands it.
Stuki Moi said:
Because the well being of an American, is most certainly not supposed to come as a result of what he himself does. But instead, how some hack in Washington DC “negotiates”, aka sits around and babbles, to his equally hack colleagues from somewhere else.
Oh dear God, not another sovereign debt chicken little. You will grow old and die waiting for a country that is the monopoly issuer of the currency it’s debt is denominated in to go bankrupt.
It’s ridiculous to not factor in debt. Let’s remove Venezuela’s external debt. Isn’t the country still bankrupt, with a near worthless currency?
What about Greece. It was bankrupt with debt in euros. Give it a printing press and it would have looked like Zimbabwe.
Japan may not be bankrupt, but idiotic thinking that debt does not matter is at the heart of its “deflation” problem.
The US dollar isn’t going to zero as Rickards promotes. But that does not mean debt isn’t a problem. Debt fuels the rise of the 1%.
Fred Rogers said:
I think its weird that Trump is claiming that “Germany” (as opposed to an increasingly isolated Angela Merkel) controls the EU (for whatever that alleged control is worth).
Germans clearly have a big problem with Merkel, and she is only allowed to stay because the CDU doesn’t have anyone willing to take on Merkel’s mess, and anger at her hasn’t put AfD into the lead (yet). AfD might gain more ground, SPD or CDU might come up with someone willing to keep the seat warm (to keep AfD out).
Her own party is defecting against her. Both CDU and SPD told Merkel (it was not a suggestion) that she cannot attend Soros’ corruption party in Davos this year. And she has already been forced to make concessions on her ridiculous and wildly unpopular immigration rubbish.
I have to assume Trump is really telling Europe to make nice with Russia (and thus make the nuke deal easier to push through). NATO is getting scaled back or eliminated (because it is outdated, Trump is right). Merkel is on her way out, sooner or later. France is a failed state (can’t send a non-existent government a message). The UK already dumped Brussels (while BP makes oil deals in Russia). The US, UK and Russia all have an interest in re-focusing attention away from continental Europe.
BMW already has an assembly plant in Spartanburg, SC (in the USA). The Mexico plant is either aimed at Latin America (seems unlikely) or at Asia (taking advantage of empty container ships returning to China?). Its an easy win for Trump to knock BMW off balance, even though I imagine Mercedes is the company he is really sending a message to.
The demographics are overwhelming. Asia matters for trade and growth. Middle east matters. Parts of Africa and Latin America matter. Europe simply does not matter going forward. From both a business and a military viewpoint, Washington DC needs to focus on the future not the past.
PS — Five days until that moron Obozo leaves office. Good riddance to a man who hates the US and never understood American values (or math or law or many other subjects)
Not weird, EU has become as he said, vehicle for German influence. With or without Merkel a main part of the German establishment (political /financial /business) will continue searching for and finding leverage there.
Fred Rogers said:
Anyone who is trying to “leverage” a dying bureaucracy to control a demographic has-been continent — is not someone a global “super power” should be focusing on. If Germany (as opposed to Merkel) wants to control the EU, let them have it.
No matter which idiot is running France and/or Germany into the ground, the US has far more important matters to attend to.
NATO is no more (even if it continues on paper, its done). The US, UK and Russia all want to focus on tomorrow, not yesterday
Thank God Hitlary will not be taking over the number one slot from Obummer as the Worst President Ever.
Obama’s not done by a long shot. He’ll continue to use his influence to sabotage Trump. Obama’s a globalist at heart. You can’t change the spots on a leopard.
When Bush left office in 2009 he didn’t interfere with the Obama administration, although he didn’t see eye to eye with Obama on many issues. In fact as I recall when Bush was asked about the Obama presidency he only had nice things to say. Very little if any criticism at all.
Now pay attention how Obama treats Trump post January 20..
Fred Rogers said:
Yet another good reason to save yourself $150 / month by cutting cable TV…
Ron J said:
“Obama’s not done by a long shot. He’ll continue to use his influence to sabotage Trump.”
Trump is running rings around Obama.
Felix Jury said:
Hi Mish ,
I am from Kiwi Land down under & some of my elitist friends could not believe that I was supporting The Donald and I had 3 different polls that would keep me up to date and at no time did they say that Trump would not become the next USA president .
If I am nutty I can watch CNN though it is not long before I need to change channels & listen to Hannity on Fox or read Brietbart news .
We will always have elitists in our community but we need to be awake as they always have a superior agenda , so they think , common sense always missing though .
I am sure that Trump will do fine but he can not reverse the K wave that will hit the Europeans and world economies , the GOVT’S have printed way toooo much money and some one is going to call a different tune and all hell will break loose .
I have had Mish into my in box just before the USA elections and I look forward to the next mish comment .
May Trump tweet a whole lot more . Regards Felix .
Casual Observer said:
Maybe the collapse of global trade is the point.
Trump is doing better than I expected. I hope he can actually do things (unlike Reagan).
So what can Trump use to get BMW to consider building a plant in the US? It seems he has to use some type of stick to get the attention of companies that want to locate in Mexico and export their finished product to the US. Is there a difference between China and Mexico as to international corporations building facilities? The US created this trade problem when it adopted NAFTA. Mexico has a large population which appears to be unsustainable. The US is also helping to create a failed narco state that could have devastating consequences for our future.
Mish – he is right about Germany.
But, the EU will survive as without it both Germany and France will slip-up.
France for protection (agriculture), Germany for a captive market and the Euro (industrial/automotive). Neither will contemplate failure of the project.
Germany has been hiding behind a weak Euro without paying up to the southern states of the EU that have weakend the Euro. It is a one way street for Germany, a good one. Get the benefit, dodge the bill. Crush states into to the union via economic crisis.
It is hedgmenony and the south is too dumb to understand. I’ve had these conversations with southern europeans and either they refuse to see it or are too scared to contemplate any possible alternative.
The EU’s mission overall is to displace the US in every sphere. It has been stated. Soft power and hard power and economic power. Obama might have been OK with that.
Trump is calling it out as it is.
Yep, the southern Europeans haven’t figured it out yet, too busy celebrating, then trying to retain, their ‘newfound wealth’. That it was always theirs, that bounty was due anyway, that greed and idealism has ruined their steady evolution and tradition, seems to escape them. They hinge in uncertainty and mismanagement trying to sort it all out in a ‘correct’ way, how could they be wrong?
Germany critiscising China.
So – the German market is open is it?
I think not.
Germany and the EU have substantial non-tariff barriers to trade. Perhaps no harm in that so long they are honest about it and don’t just point fingers.
Kettle, pot, black are the terms that come to mind.
They are happy so long as other large markets become there customer and they have control. Not so when others are looking to catch-up, compete and one day over-take.
Garry Gentry said:
I started reading your blog years ago because of your writings on economics. Have continued to read your blog in SPITE of your being a cheerleader for Trump. You OWN him and what he is pushing now whether on trade or the things you say you disagree with him on. He actually got elected BECAUSE of his strong views on trade (and immigration) as right or wrong most American working class feel they have been getting screwed on it for years and they are correct.
Here is Germany’s response.
‘I believe BMW’s biggest factory is already in the US, in Spartanburg [South Carolina],
“The US car industry would have a bad awakening if all the supply parts that aren’t being built in the US were to suddenly come with a 35% tariff. I believe it would make the US car industry weaker, worse and above all more expensive. I would wait and see what the Congress has to say about that, which is mostly full of people who want the opposite of Trump.”
Asked what Trump could do to make sure German customers bought more American cars, Gabriel said: “Build better cars.” 🙂 🙂 🙂 🙂 🙂
Here is BMW’s answer to trump.
“A BMW spokeswoman said a BMW Group plant in the central Mexican city of San Luis Potosi would build the BMW 3 Series starting from 2019, with the output intended for the world market. The plant in Mexico would be an addition to existing 3 Series production facilities in Germany and China.”
Here is Russia’s answer to the suggestion of a trade between lifting sanctions on Russia and curbing their nuclear armament.
“Peskov said Russia had not been conducting talks with the US about nuclear arsenal reduction and said cancelling sanctions was not a political goal in Russia.
“Russia wasn’t the initiator in introducing these restrictions, and Russia, as the president of Russia has underlined, doesn’t intend to raise the issue of these sanctions in its foreign contacts,”. 🙂
Here is Germany’s response to the refugee issue raised by trump.
Responding to Trump’s comments that Merkel had made an “utterly catastrophic mistake by letting all these illegals into the country”, Gabriel said the increase in the number of people fleeing the Middle East to seek asylum in Europe had partially been a result of US-led wars destabilising the region.
“There is a link between America’s flawed interventionist policy, especially the Iraq war, and the refugee crisis, that’s why my advice would be that we shouldn’t tell each other what we have done right or wrong, but that we look into establishing peace in that region and do everything to make sure people can find a home there again,” Gabriel said.
“In that area Germany and Europe are already making enormous achievements – and that’s why I also thought it wasn’t right to talk about defense spending, where Mr Trump says we are spending too little to finance Nato. We are making gigantic financial contributions to refugee shelters in the region, and these are also the results of US interventionist policy.”
The best part of Sigmar Gabriel was of course “Build better fucking cars”. Some negotiating skills trump has….. :). Good Luck.
– US would turn to manufacturing own parts. Net cost 0, deficit savings, employment, control of production.
Why want the German market when you have your own?
International competition is as crooked as nationalisation. The competition would take place by learning foreign advances to apply domestically. Ultimately the problem with US is its own auto monopoly, leave space for competition WITHIN the US.
– Compete on the world market in the same way.
– No negotiation because still not new admin. . Nothing to say any future agreement won’t be mutual on all fronts, each side gaining.
– Not going to Blame Trump for past US policy. What he said stands. Germany is only interested in maintaining its position, which is understandable given the possible costs of admitting its role ( not the humanitarian one).
You can not manufacture your own parts. To be sure you can but you can’t be competitive with them. Because it will always be cheaper elsewhere, or better somewhere else. The logistics involved in all this is just to vast to put it in words. You used to manufacture them but now you don’t because quality and price is better elsewhere. Not a single car manufacturer produces their own parts. Not one.
For instance BMW the carbon fiber parts are almost exclusively produced in the US. That is because the US has the best manufacturing techniques and the most advantageous prices when it comes to producing high tech materials. Can for instance my country produce these carbon fibers for BMW? Yes we could probably, but nowhere near the quality of the US maybe cheaper in price only. Each country has a strategic advantage over another. Some raw materials for instance are not available in one part of the world are in another. Expertise in one place better than another. Labor is cheaper in one country expensive in another and so on. Moving manufacturing bases and acquiring the necessary experience to compete in the market place is a process that takes decades not years even. No country can make everything.
The countries that have tried going alone, have ended up in very bad situations. Driving rusting buckets and wearing clothes made from one material.
As for trump not taking the blame for past US policy. Then he shouldn’t criticize others, for the situation his office and predecessors have created.
But countries don’t work like that. If the rest of the world felt that each admin in the US brings completely different policies and are not bound to respect any agreement or accept any mistake that the previous ones have made, then hardly anyone would be able to deal with the US.
Agree, but there is a limit to outsourcing. If your books don’t balance you are effectively selling debt, the end result of which is what we have now. This is a reason people are pulling their hair, the same long established industry that was reorganised abroad over decades will be very difficult to return. It was sold off for the profit, part of that being cheaper production. , but if you are not producing you have nothing to exchange except your assets, including ownership of those that are productive, as reinvestment is asymmetrical in its pursuits.
Put another way, which is better – manufacturing own at higher price for domestic market that has the higher wages at hand to purchase, or going into debt, losing employment base, because another country will make it cheaper?
The US has the tech. , labour costs are the problem in an open market.
It is a balancing act that includes a lot more, including social structure and the direction of government.
Sure, criticise the US where it is due, let Trump be critical of German policy…. and criticise Trump policy as well where there is ground. At the end of the day decisions get taken and the results are up for interrogation…except where you have to shut up 🙁 .
Countries would still deal with each other but they would retain more independence. Inter-reliance brings a wish for maintained peace, but in reality each has its avenue for conflict to emerge. The world is fluid, loyalties, opportunism, confrontation , will still form, whether between nations, groups of nations, or within nations.
“Here is BMW’s answer to trump.”
…and here is Obama’s response to Volkswagen : execs on holiday being taken away in handcuffs.
Thinking of it this way – various protected by US tax spend on defence whilst the protected get to save and have better social programs and export like bandits protected by a weakened currency.
Meanwhile the US runs a large deficit to some of these countries.
Agree with Trump or not, there are some freeloaders in the world.
My only concern is if some of those freeloaders begin to spend what they should, then go “rogue” (again), the bar stewards willbe well armed. Bit iof a blancing act.
I am against Germany re-arming. They cannot be trusted. History proves it.
What to do?
birdprey, is this the same man that has overseen a German Automotive complex that has CHEATED on emmissions?
He’d better get VW’s house in order before telling others to build better cars.
It must have been known at the highest levels what VW was doing as VW = German Automotive?
I doubt very much it is an issue for me or you that VW cheated with their emmissions. It didn’t make the car any better than what it already was, it just allowed it to have more speed 🙂 and i love speed my friend, i couldn’t care less.
Joking aside though, it doesn’t matter what he has done with VW, the answer was brilliant. So was the Russian answer btw. Simply brilliant. trump is out of his depth, and it’s showing.
German cars did not become competitive bcs of VW cheating on emissions, they already where the undisputed number one. It wasn’t to gain competitive advantage but to sidestep regulation that would make a VW equal to others, why should they when they have basically reinvented the car after having invented it in the first place. I don’t agree with what they did because i don’t like polluting the environment but it is nothing to shout about.
Especially since Fiat Chrysler has been caught also, but somehow they are not being charged.
You don’t compare german manufacturing standards to anyone, to the japanese perhaps, to a degree since they are both very detail oriented people, but when one speaks of german auto industry love germany or hate them, they are without a doubt the best, deservedly so.
You don’t solve competitive problems by imposing tariffs on companies. You do it by advancements in quality, by being the best. Except for Ford in the US the rest are just far below in quality and innovation.
They have a good detail and their deserved niche, but no more.
Reliability is as much the established company framework as mechanical.
Not necessarily VW only, but german cars in general. Especially BMW.
Btw they own Porsche too 🙂 VW that is.
VW own Audi too.
I don’t rate BMW, much prefer Aston Martin.
As fish…. except I don’t own an Aston lol. MGBs deserve a place by themselves too. Used to own a Mini Moke in AU and that was great, no doors even to bother with.
VW are the only German brand I would go near.
Tohsiu credit he also stated clearly that German is the biggest beneficiary of the EU – time for them to cough up taxes then for the other countries.
Trump says that he already has a replacement for Obamacare that would likely gain congressional approval. And he hasn’t even moved into the White House yet. Talk about a self-starter who hits the ground running!
This man is tackling huge domestic and international issues simultaneously. Unprecedented. He’s flying out of the starting gates. Let’s hope he doesn’t burn himself out halfway around the track.
But this is exactly what the country needs. A private sector guy in the Oval Office who views government as a barrier and looks for ways to circumvent it.
The problem is that the prior administrations dealt him a losing hand that is practically impossible to play. $20 trillion in debt and another bubble economy. It would take a miracle to save this sinking ship!
God speed, President Trump!
I hope his replacement deals with the Pharma and Insurance giant hydra that no one seems to be able to kill. Seriously, if it can’t be tamed, nothing will work.
It frightens me how often I agree with this president (except tariffs).
I can’t express my disappointment with the past 30 years of archaic European foreign policy more clearly than Trump has.
Germ, that is the stupidest video I’ve ever seen. The ladies could make a statement without the demented theatrics. Really, I think they aren’t out to make a statement, but to get as much attention as possible. Kinda in the realm of Marilyn Manson antics.
Did anyone of you ever stop to think that there is a certain amount of bluffing going on? Those who blink first give in. Trump won’t be able to do much of some things he’s bitching about, but if he makes the first move (declare tit for tat) and the other guy blinks, bingo! Compliance, to a certain extent. At least verbally.
Ltrump is brilliant. Dont attack countries trade policies first. Instead make examples of companies very publicly. You won’t get much blowback this way. Lay an import tax on one company and the rest will fall in line. Then negotiate country trade deals after they see how he operates. I predict our trade deals will get fairer.
Also, I love his carrot and stick approach. Lower nukes and we will drop sanctions. Imagine developing trade deals that also include policy. Here is our offer China. Btw back off on the south China see and we will also agree to this and that.
China and other countries basically run indentured servitude labor systems(with children.) Mexico is only cheaper labor but is a gross polluter. It’s not a level playing field at all
russ cohn said:
Russia has a population of 143 million and a GDP of 1.4,about 1/10 the size of China.While Russia does have thousands of nuclear weapons and can and has been aggressive towards bordering countries ,it does not have the economic capabilities to be a world power.,while China does.The real problem now and in the future is China not Russia.
During the last 30 years The US trade deficit with China has exploded from about zero to over 300 billion /annually while the German deficit has gone from 14 billion to 75 billion .Almost by definition running such large trade deficits is not a result of free trade,but of lopsided trade arrangements in which the US has been the patsy.These trade deficits NEED to be reduced.While tariffs are hardly optimal in accomplishing this,attempting to do so via negotiation will take much longer and will be resisted vigorously. by both China and Germany.
Been saying it repeatedly. Russia has become just another oil export dependent military dictatorship.
The owners and upper management of classic media and the highest ranks of the US military and intelligence community reached adulthood in the mid sixties and haven’t recovered from it.
-Fear of Russia
-Fear of nuclear energy
-Assumption that the two-party US political system will propogate
-Disrespect for the cultural constructs that allowed them to get where they got
William Henry said:
Trump is all about reductionist fallacy. Of course it doesn’t help when you can’t sit still for an intelligence briefing.
And I’m missing how these Trump threats imply Obama is “the lamest of lame ducks”. Classic nonsequitur.
I still think [as I have posted on Mish’s topics before] that Trump could be a modern version of the Babylonian governor of Gutium who defected to Cyrus. If so, NATO is indeed “obsolete.”