Specter of trade war looms as G-20 nations gather

When I made this posting a few days ago, I was really sort of hoping that the comparison between what’s happening now regarding international trade and exchange and what happened when FDR figuratively blew-up the 1933 London World Economic Conference would prove not to continue to hold water, since the outcome then, and the expected outcome (given no change of course) now are both Very Bad Things for economic health.

Unfortunately, it seems that there is more expectation of the present, problematical course of the B.O. administration continuing.

The world’s economies stand on the brink of a trade war as leaders of rich and emerging nations gather in Seoul.

A dispute over whether China and the United States are manipulating their currencies is threatening to resurrect destructive protectionist policies like those that worsened the Great Depression. The biggest fear is that trade barriers will send the global economy back into recession.

Hopes had been high that the Group of 20, which includes wealthy nations like Germany and the U.S. and rising giants like China, could be a forum to forge a lasting global economic recovery. Yet so far, G-20 countries haven’t agreed on an agenda, let alone solutions to the problems that divide them.

Doesn’t sound like everyone is ready to play nicely together.

G-20 leaders were expected to issue a communique detailing results of the summit on Friday.

Good luck on THAT! Oh, for sure there’ll be a “statement”, but it doesn;t look like there will be much to state except “Yep, we’ve been there, and done that – time to go home. See you all next time around!”
Meanwhile, as the Fed fires up the printing presses, and the results on Main Street will be predictable: don’t get a crick in your neck watching the rocketing contrail of higher prices.