Alternative Visions - Trump-EU Trade ‘Deal’ + US GDP Analysis + Economists Debate Fed Rate Hike - 07.27.18

Summary: This week’s show addresses the past week’s ‘trade deal’ between Trump and the EU. Trump gets real EU concessions for merely suspending his threats to impose 25% auto tariffs on European parts imports to the US. Europe now will buy US soybeans and natural gas. Trump merely backs off threats in exchange. Rasmus then analyzes why US GDP for 2018 is above historical averages but will soon, in 2019, slow sharply and even retract after midyear 2019. Why rising prices are driving investment and consumer spending, not tax cuts plus how US revisions to household savings rates and corporate profits raise questions about US stats. Trump’s criticism of the Federal Reserve rate hikes. The mainstream economists debate Fed rate hikes. The show concludes with explanation how tariff wars may lead to currency devaluations and currency wars.