Like I've been saying. As a result of the policy of sanctions, asset freezes, and price caps, era of the free market, free trade and free flow of capital as the basis of global trade is over.For 70 years after World War II, global growth was underpinned by ongoing efforts to boost international trade by eliminating self-defeating trade barriers. Sadly, the United States started dismantling this source of shared prosperity under Donald Trump, and it has now accelerated the process under Joe Biden.
Reason? Lack of systems awareness leading to failure to accurately assess consequences of action. Likely caused by faulty reasoning resulting from cognitive-affective bias and informal fallacies. ("Believing your own bullshit.")
There is also the issue of not learning the lessons of history. The last time major jiggling with global trade was tried for national advantage, e.g., Smoot-Hawley, the outcome was aggravation of the persistent global depression that presaged world war. That was just protectionism. This is weaponizing and the target is just about everyone but the golden billion so that the golden billion can remain the golden billion.
Hmmm.
Project Syndicate
Sleepwalking Into a Global Trade War
Anne O. Krueger | former World Bank chief economist and former first deputy managing director of the International Monetary Fund; Senior Research Professor of International Economics at the Johns Hopkins University School of Advanced International Studies, and Senior Fellow at the Center for International Development at Stanford University