Below is an open letter to Larry Kudlow I posted here on July 19, 2018. I warned that Trump's trade war would backfire. Today we heard that the National Association of Purchasing Managers' industrial production index had fallen to the lowest level since June of 2009. We are in a manufacturing recession, according to the Federal Reserve. Factory output is contracting. Trump won in 2016 by carrying key manufacturing states like Pennsylvania, Ohio, Michigan, and Wisconson. This blunder could lose him the election. This is MUCH more dangerous than the impeachment masquerade. Americans really don't care about Ukraine but they do care about their jobs. The President is trying to deflect blame onto the Federal Reserve, but he's not fooling anybody.
Otherwise, we're getting our heads handed to us by the Chinese. After a year of twisting the arms of our allies to boycott Huawei's rollout of 5G broadband, the Chinese national champion will ship 600,000 5G base stations this year, and the latest batch have zero U.S. components. All of our attempts to jawbone their customers and cut off their access to U.S. technology have failed.
I hate being right about this sort of thing because I want to see Trump re-elected, and I'm horrified at what a Democratic victory in 2020 would do to this country. Nonetheless, I'm going to tell you I told you so. Tariffs don't work. We need a JFK- or Reagan-style mobilization of our technological and human resources to force the advancement of US technology and maintain our preeminent position before the Chinese pull past us. That's what won the Cold War. It's what we're good at. And it's the only policy that will work.
Read Goldman's 2018 letter to Larry Kudlow here.
No comments:
Post a Comment