Please consider Border Closures ‘May Show What a Full-Blown Trade War Looks Like’.
CC secretary general John Denton also called on China – where the number of virus cases has dwindled – to continue with its market reform process once the Covid-19 pandemic was over.
“What you are seeing in a way is kind of an avatar for what happens with protectionism,” Denton said during an interview in Paris, where the ICC is based.
“You’re seeing borders being closed, goods being redirected, supply chains being redesigned, whole sectors of the economy feeling the impact of the closing of borders.
“And if you think about a full-blown trade war, that’s actually what happens,” he said. “I don’t speak in apocalyptic terms – all I’m saying is that it’s an interesting parallel to be drawn.”
Four European countries have closed their borders, preventing people from arriving or leaving. Italy – the country worst-hit by the coronavirus outside China – is on a nationwide lockdown, affecting at least 60 million people, and Spain announced on Saturday it would do the same.
The Path We Were On
Michael Pettis at China Financial Markets says that is the path we were on.
I agree, as Trump has literally been on the edge of triggering Smoot Hawley for a year.
He is an economic fool who still believes "Trade Wars are Good and Easy to Win."
That said, I believe Trump would not have been re-elected, and I am sure his poor handling of the coronavirus has sealed his fate.
Insisting on Made in America Means No Supplies
On the Lighter Side
My wife got the last four boxes of macaroni and cheese at Jewel today. We were out, not hoarding.
The entire store was stripped bare. Toilet paper, gone. Sanitizers, gone. Shelves empty.
She got a package of Jewel sausages because they were out of Johnsonville. They were "hot" and I won't eat them. She said that is all they had.
We have a freezer and I have hams, bacon, pork chops, chicken, butter, cheeze, and steaks frozen. Always have a supply.
We have a supply of pasta too, but I did not realize until yesterday we were out of sauce. We got the last few cans of that too.
Mike "Mish" Shedlock