Get ready for the Great Trump-Xi Depression. The White House is pursuing two stupid policies, trying to reduce the United States’ “balance of payments” with China and trying to protect “intellectual property” from China’s thievery. These policies are leading to a crash in the Chinese economy, which has been grossly ill-managed under President Xi Jinping. International knock-on effects were already apparent last autumn, even as the trade deficit ballooned and Americans benefited from Chinese theft.
“Balance of payments” is a silly way of talking, right from the get-go. Are you concerned about your balance of payments with your grocery store? You give Kroger cash and it gives you goods. Worried? I thought not. After all, you have a balance of payments surplus with your employer, right? Hope so. And your scary-sounding deficit with Kroger is good for you. In exchange for money, the store provides healthy food such as oatmeal, walnuts, olive oil, and blueberries, writes Deirdre Nansen McCloskey.