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Yellen's Disastrous China Trip

Mercantilism and the Shifting Global Economic Landscape

Podcast Topics:

  1. Context and Background

    1. Mercantilism vs. Globalism

    2. Terminology

  2. Janet Yellen's Statements and Their Implications

    1. April and May Statements

    2. April 5th Statement

    3. Contradiction of Orthodoxy

  3. Mercantilism and Trade Protectionism

    1. Economic Engine Shift

    2. Impact on Trade

    3. Global Supply Chains

  4. Economic and Trade Realities

    1. Current Account Dynamics

    2. U.S.-China Trade Relationship

  5. Strategic Implications

    1. Domestic Manufacturing

    2. Tariffs and Trade Wars

    3. Economic Philosophy Shift

  6. Conclusion

    1. Trade War Escalation

    2. Future Outlook

Mercantilism, Janet Yellen, and the Shifting Global Economic Landscape

The podcast explores the resurgence of mercantilism, highlighting its significance as a replacement for globalism. Mercantilism, characterized by economic nationalism, protectionism, and a focus on bullion (gold and silver), is rarely mentioned explicitly. Instead, terms like protectionism, tariffs, and trade protectionism are more commonly used to avoid the heavy connotations associated with gold and silver.

Janet Yellen's recent statements regarding China's economic practices have drawn significant attention, marking a departure from decades of U.S. economic orthodoxy. In April and May, Yellen addressed the risks posed by China's overproduction of cheap goods, such as electric vehicles and solar panels, flooding the U.S. market. This stance contradicts the past 40-50 years of U.S. economic policy, which benefited from cheap Chinese goods, indicating a pivot towards mercantilism.

The U.S. is transitioning from a service-based economy that thrived on globalization to a manufacturing-based economy. This shift requires reshoring, onshoring, and achieving self-sufficiency. The move towards mercantilism necessitates becoming a low-cost producer, a challenge given China's ability to produce goods cheaply. The COVID-19 pandemic and geopolitical tensions have exposed the fragility of global supply chains, prompting countries to seek self-sufficiency and regional trade alliances.

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