Jose Thomas

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TRADE WARS
Saturday 06th October, 2018



     

 

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Hello friends,

I hope everyone in Kerala is gradually getting back to normalcy from the floods that caused immeasurable misery and devastation; an unforgettable situation.

Going forward, I will be writing few blogs on the world economy and the changes that I foresee. Let me begin here....

At this time everyone knows that the world is going through major challenging times. Everyone is under the belief that all this is because of the U.S. President, Donald Trump. Partially this is correct, but I have different views on this subject and would like to request my readers to treat this purely as my personal opinion and has nothing to do with blaming anyone.

The whole world today is talking about blame game! calling it “trade war ” and everyone is trying to target the U.S Administration for this. I am not here to say who is right or wrong.

According to me, the whole world is responsible for what is going on and not just USA and China. Every nation today is talking about some kind of protectionism like “Made in India” or “ Make in India”, for attracting foreign investments, offering various incentives, etc. and at the same time, adjusting tariff rates to do corrections to their respective finances and finally going to WTO purely for buying time. From my experience, I know USA has always been a country that has been charitable and forgiving and has acted as a world leader. We all agree we need a world leader. If America had not taken responsibility to be the world leader, can we all imagine where the world would be today? We are already seeing turmoil in various countries from Latin America to the Middle East and Asia. Today, no country even thinks of invading each other or going to war because they know the world leader will interfere and involve. Even the Indian Sub-continent is very peaceful now. So let’s give the devil its due credit. America is not only the true trading partner for various nations, but works as a watch dog, keeping the best interest of every other nation.

Our children who are completely unaware of what is going on should not be caught by surprise as they are pretty innocent. They don’t know what is going on. We, grown up’s and parents today know for sure that all they know is about Google, Whats app, etc.

Policy makers in different countries are re-writing the laws from immigration to taxes and so on. Will the current generation ever understand what happened or what is in store for them?

Once again, as the trade war heats up and with new agreements being signed, it all points towards level playing ground. Every nation could negotiate with one another and grow each ones economy. This should be the goal. Abrupt decisions should be avoided and nations should concentrate more on diplomatic solutions.

President Trump is a hard core businessman and that is what he knows the most. He is not a pure politician. It seems he is working in the best interest of his country, his America, his people, and he doesn ’t seem to be bothered of what is happening elsewhere. I think every nation must open up each ones markets and work on fair understanding by allowing free trade, that too, with tariffs that will not hurt one another. As I write this, I can see U.S., Mexico and Canada has re-drafted their agreement from NAFTA to U.S. MCS.

I do live in the U.S. partially and see what is going on. I use the Sub-way system in New York very often and I must say this is the worst Sub-Way I have seen in the world. I often sail in the Hudson river under the bridges connecting various boroughs. As I pass under these bridges, I see corroded steel sections, not maintained at all. Why is this? I suspect if the cities have enough resources to fix this. Unfortunately it looks like the cities don’t have enough resources today to improve the infrastructure.

Recently I was in Seoul at the Incheon Airport and I saw unbelievable infrastructure built there, the Airport. Wow!!. Look at the New Delhi Airport, Mumbai Airport and other new airports around the world. Compare it with Newark Airport in New Jersey, John F Kennedy Airport, LaGuardia Airport. They are all far behind and in no way comparable.

All America is trying to do is, change one way trade deals and strengthen and reduce the debt of America. Illegal immigrants will naturally create instability to any nation. I wonder which other countries will permit illegal immigrants to just walk in and live there. So by reading this blog so far, you would understand what I am trying to convey. Every nation has to open up. There has to be level playing ground and one way deals must stop.

You know I live in India and in the U.S. Whenever I am in India, I pay attention to what is going on. One thing I don ’t understand is why one too many people make multiple projections about India ’s GDP. I don ’t know why this is happening? Why don’t we set a target, chase it, get it right. Look at the newspapers. We see more than two to three projections a week on India’s GDP. Why did I speak about level playing ground? I too do business in India and I know how difficult it is to import anything, leave alone the high tariffs. If Californian wines cannot be freely exported to India and if India can freely export anything to the U.S., is it called fair trade?

I will be writing a few blogs on this subject and I want to take it step by step. My advice to the youth is, “start paying attention to what is going on in the world ”. Read and listen. Give a break to Google, Whats App groups and other social media. Your life must be protected.

Stay tuned for more!!
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