World Perspectives
energy

All in Trade War; Ag is Front and Center; Energy as Trade Proxy

All in Trade War The lack of a China-U.S. agreement on trade this past weekend in Beijing means that things will get worse before they get better. Each side’s goals are quite clear, and so the difference is in calculating the cost-benefit ratio of the trade war. The cost in terms of economic risks will have to increase.  Delay would ordinarily favor the authoritarian regime rather than the democracy, but Donald Trump is not a normal western politician. His re-election in 2020 depends upon proving that he is the great negotiator. The former casino owner has all his chips on the table.  China will use its administrative controls to hurt U.S. exports. There is never a good time for business uncertainty but there could be wor...

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