Which presidential candidate has been railing about the bad deals the United States has with Mexico, Japan, and, yes, China? Which presidential candidate is a businessman with a background in, yes, finance and economics? Which presidential candidate immediately spoke about the devaluation of China’s currency?
Donald Trump. It’s like he’s the candidate who has an opinion, and the other candidates have to filter their comments through the poll numbers and political advisers before they can comment. Perhaps it’s because he’s
a billionaire businessman instead of a politician. As a businessman, he’s used to signing checks on the front, not the back. If he loses money, he loses his own money, not OPM [other people’s money]. He graduated from the University of Pennsylvania Wharton School of Business. Carly Fiorina is the only other candidate who has significant business experience, unless Hillary Clinton’s Foundation
counts as a business.
Believe it or not, Brazil is impacted by China’s troubles more than the United States. China buys 50 percent of the iron ore, copper, oil, and other commodities that Brazil exports. The devaluation of the yuan threatens to lower the already record low prices of those commodities.
In fact, Bank of America stated that a 2 percent decline in the yuan results in a 1 percent decline in commodity prices, which has a huge impact on countries like Brazil where commodity exports account for 15 percent of its entire GDP.
There is a multi-billion dollar government corruption scandal attacking the national psyche. But I digress.
Trump immediately saw the yuan devaluation as “devastating for us.” At least he realizes the problem. And the first step in developing a solution, is to identify the problem. Same with the immigration problem; at least Trump addressed it as a main issue.
Trump is rough around the edges, no doubt about it. But I think he’s about to reach his stride. He is starting to settle down into statesmanship mode. He’s released some policy statements on the hot button issues, like simplifying the tax code, without completely abandoning it or implementing an entirely new structure. Defeat the
Islamic State by cutting off their access to oil revenues. Partly defund Planned Parenthood. Building a wall with Mexico to stop the influx of illegal immigrants is an ongoing suggestion which seems to resonate with a lot of people, and he hasn’t changed that.
Trump is a businessman, so he’s wise to not make any specific suggestions regarding the budget until he has experts study the real numbers. He’ll come up with specific economic plans and a budget once he has experts study it.
Who do you want negotiating with foreign countries like Mexico, Russia and China? A career politician who filters decisions through a committee, or a businessman who can make decisions on his own? Remember, timing is everything.