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Debt continues to be the concern, both in the U.S. and even more so in China. One is never certain about the numbers China spits out, but be that as it may—they have serious debt problems. As I have said many times, curing over-indebtedness by issuing more debt just doesn’t work.
Trump’s tariff policy adds fuel to the fire. Yes, he is right that we have been taken advantage of over the years, which really has been our own fault. I certainly hope this is not carried out too long. No one wins from a real honest and goodness trade war.
The combination of debts and tariffs has placed the world economy in a world of hurt. I just don’t see any way out of this for some time. Again, caution is the best policy.
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