E Posen And Cramer On Trade Wars And Cold Wars

Esteemed economist, Adam Posen, speaks out on trade wars and tariffs. This is one of his most important statements regarding the New World Order:

At the heart of that order, it put the liberal values of free trade and the rule of law. Over the next seven decades, the order, backed by U.S. power and bolstered by its growing legitimacy among other countries, prevented most economic disputes from escalating into mutually destructive trade wars, let alone military conflict. That allowed even the smallest and poorest countries to develop their social and economic potential without having to worry about predation by stronger neighbors. By taking much of the fear out of the global economy, the U.S.-led order allowed market decisions to be driven by business, not bullying.

The order is far from perfect and has applied clear and hurtful abuses to the masses, and Posen points out many abuses. But the alternative to US guidance likely will prove the be much worse.

Dr. Posen is the president of the Peterson Institute for International Economics. He is a member of the Trilateral Commission, and the CFR. He is an insider. That makes some people uncomfortable. This is likely because many have observed that there is a fine line between free trade and abuse of empire.

The US set up a system whereby free trade would thrive and nations would improve economically all over the globe. The theory behind that is that the more affluent the consumer, the more they will buy from our corporations.

But the system was seriously abused at times. Three major abuses can be singled out:

American workers have been abused by jobs moving offshore without adequate compensation by the US government.

And American consumers have been abused by liar loans and by financial products imported from globalist banking. The Federal Reserve Bank did not bail out the borrowers but rather bailed out the sources of the toxic loans! This has not been pleasantly received by the American public. All that abuse, corporate abuse of consumers included, must be acknowledged and owned. But it still is not fully owned.

Nations claiming democracy have had their leaders murdered, sometimes at the hands of US forces. Latin America is a poster child for this past US behavior.

But Posen makes the case for free trade versus the ideas of tariff wars espoused increasingly by Donald Trump, and some of both political parties. Tariff wars are meant, in the long run, to either beat down a perceived adversary, or to set up something other than globalization.