TRUMP, THE GREAT DEPRESSION, AND AfCFTA – THE CONNECTION

The House of Morgan

TRUMP, THE GREAT DEPRESSION, AND AfCFTA – THE CONNECTION; WHERE IS IT? IN THE FOLLOWING ARTICLE, I WILL TRY TO CONNECT THE DOTS.

WE KNOW DONALD TRUMP, THE CURRENT PRESIDENT OF THE UNITED STATES OF AMERICA, FOR HIS OPPRESSIVE ECONOMICAL POLICIES. MAINLY USING TARIFFS, HE TRIES TO DESTROY THE ECONONIES OF COUNTRIES THAT DO NOT WANT TO FOLLOW HIS WAYS. CONSEQUENTLY, WE CAN CONSIDER THIS POLICY A RELATION OF MERCANTILISM. GENERALLY, PEOPLE DEFINE MERCATILISM AS

the economic theory that trade generates wealth and is stimulated by the accumulation of profitable balances, which a government should encourage by means of protectionism https://www.bing.com/search?q=MERCANTILISM
WITHIN THIS DEFINITION, THE MOST IMPORTANT FACTOR IS “by means of protectionism”. PROTECTIONISM IS
the theory or practice of shielding a country’s domestic industries from foreign competition by taxing imports https://www.bing.com/search?q=definition+of+protectionism
THEREFORE, THIS KIND OF POLICY IS DANGEROUS FOR THE GLOBAL ECONOMY. RON CHERNOW DESCRIOBES IN HIS BOOK “THE HOUSE OF MORGAN” WHICH FATAL CONSEQUENCES WE CAN EXPECT FROM THIS POLICY. HE REFERS TO EVENTS IN HISTORY THAT LED TO THE GREAT DEPRESSION OF THE 1930S.
“On June 17, 1930, ignoring the pleas of over a thousand
American economists, President Hoover took up six gold pens and signed
the Hawley-Smoot Tariff Act. Its heavy tariffs would account for more
than half the price of some imports. The day before Hoover signed the
bill, the stock market, in nervous anticipation, suffered its worst day
since Tragic Tuesday….
Apprehensively, America’s most
international bank watched the rise of a new economic nationalism. It
would dismantle the structure of free trade and free flow of capital that
the House of Morgan, along with Montagu Norman and Ben Strong, had
struggled to create in the twenties. Within two years, two dozen countries
would retaliate against the Hawley-Smoot tariff by raising their own
tariffs and slashing U.S. imports.” – THE HOUSE OF MORGAN, PAGE 424F.-
[YOU CAN DOWNLOAD THE BOOK AT THE BEGINNING OF THIS ARTICLE.]
WE SEE, THAT A NATIONALISTIC, PROTECTIONIST ECONOMIC POLICY CAN HAVE CATASTROPHIC CONSEQUENCES FOR THE GLOBAL ECONOMY. TO REALISE THIS, WE ONLY NEED TO LOOK 90 YEARS BACK, AND WE SEE THE RESULTS.
THIS EVEN MORE, AS TRUMP DOES NOT SEE THE FUTURE FOR U.S.A. BUSINESS IN INTERNATIONAL COOPERATION, BUT IN BILATERAL AGREEMENTS WHICH ARE [OF COURSE!] DICTATED BY THE TRUMP ADMINISTRATION. THEREFORE, EVERYONE WHO DOESN’T WANT TO PLAY ACCORDING TO TRUMP’S TUNE WILL BE EXPELLED  FROM HIS “FAVOURS”.
SEE CHINA: AS IT DOES NOT WANT TO PLAY ACCORDING TO TRUMP’S RULES, HE WANTS TO DECOUPLE THE UNITED STATES FROM CHINA. BUT, THAT DOES NOT ONLY MEAN THAT THE UNITED STATES WILL NOT DO ANY BUSINESS WITH CHINA. NO, THE UNITED STATES WILL ALSO PUNISH EVERY BUSINESS, EVERY COUNTRY THAT DOES BUSINESS WITH CHINA.
EITHER TRUMP DOES NOT WANT TO OR CANNOT REALISE THAT MANY US-AMERICAN BUSINESSES DEPEND ON THE COOPERATION WITH CHINA. CHINA SUPPLIES MANY OF THEM WITH PARTS FOR THE PRODUCTION OF GOODS, AND MANY OF THEM EXPORT GOODS TO CHINA. THAT’S THE RIDICULOUS ASPECT OF THE WHOLE ISSUE. TRUMP WANTS TO “DECOUPLE” THE UNITED STATES FROM CHINA. ON THE OTHER HAND, HE WANTS CHINA TO BUY MORE, E.G., SOY BEANS FROM THE UNITED STATES. FURTHERMORE, THE TRADE DEFICIT OF THE UNITED STATES GETS LARGER. YOU CAN REASONABLY ASK YOURSELF WHY…
AND WHAT HAS THE AFRICAN CONTINENTAL FREE TRADE AREA [AfCFTA] TO DO WITH THAT? IT’S SIMPLE: IT SHOWS HOW IMPORTANT INTERNATIONAL COOPERATION IS. IT IS ESPECIALLY IMPORTANT IN VIEW OF THE SITUATION AFRICAN COUNTRIES ARE IN. MANY OF THEM HAVE PROBLEMS TO DEVELOP THEIR ECONOMY ALONE. ONLY AN INCREASED COOPERATION CAN LEAD THE AFRICAN COUNTRIES OUT OF POVERTY AND NEW FORMS OF COLONIALISM. AfCTA WILL GIVE THEM STRENGTH AND CAPABILITIES TO COUNTER ANY ATTEMPT OF COUNTRIES LIKE THE UNITED STATES TO EXPLOIT THEM. ONLY AfCFTA HAS THE CHANCE TO BRING THE AFRICAN CONTINENT THE COOPERATION IT NEEDS FOR A SUCCESSFUL FUTURE.
TRUMP, THE GREAT DEPRESSION, AND AfCFTA – THE CONNECTION IS THERE. CONSEQUENTLY, AfCFTA IS THE FUTURE FOR AFRICA .
LET’S TRY IT!

 

Leave a Reply

Your email address will not be published. Required fields are marked *