Source: Zero Hedge
“If you receive your news via Donald Trump tweet, or courtesy of proclamations by Larry Kudlow, you’d be forgiven for eagerly anticipating a groundbreaking U.S.-China trade deal to be announced imminently, and thinking such a deal will save the global economy from rolling over into a serious downturn as well as pacify geopolitical tensions between the number one and number two economies in the world. However, if you expect these things, I don’t think you’re paying attention. Trump seems fanatically obsessed with the stock market, and Xi’s been dealing with an economy in a tailspin. It’s certainly possible they come up with some sort of agreement they think will restore confidence in the global economy and convince people the last few months were nothing more than a ‘glitch.’ It’s also important to understand this positive outcome appears to be assumed by the stock market and investors generally. Anything less might be seen as a colossal disappointment….It seems many people wish to believe the trade war is some Trump-driven wild goose chase and that once he signs a deal or is out of office things will go back to the way they were with U.S.-China relations, but this is wrong….What we’re looking at is a very serious, long-term geopolitical confrontation that will resolve itself only after much pain on all sides. Either the U.S. will consolidate its dominance as the sole superpower on earth replete with a global empire of vassal states, or China, Russia and others will succeed in ushering in a more multi-polar world and a possible bifurcation of the global economy. My money’s on the latter….At the root of China-U.S. tensions is a struggle for global power and dominance, and I don’t see either side giving in on their ambitions any time soon. Prepare accordingly.”
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