Submitted by Taps Coogan on the 4th of July 2018 to The Sounding Line.
CNBC’s Rick Santelli recently spoke with Bianco Research President Jim Bianco about the importance of the ongoing desynchronization of global economic growth.
“You have to remember: what does Trump want? He said it last night: ‘I prefer no trade barriers.’ That’s what he wants. That’s his ultimate goal. He is using tariffs as a tool to get there. What are we finding? The rest of the world is slowing down. The Chinese stock market is under tremendous pressure. They’re under the gun to come to a deal. He’s not under the gun to cave, they are, and I think he knows it and I think they know it too and that’s ultimately why I think the markets… are not really on fire here because in the end they know that we might end up with a better deal than they have right now.”
“Look at Europe. Look at the rest of the world. It is slowing down a lot. S&P 500 companies, 40% of their sales are outside the US and it is slowing big time right now. That is the number one issue right now that is really bothering the market, ‘who are we going to sell this 40% to if they are decelerating as fast as they can’ and I think we mix it up with the trade issue because this is 2018, Rick, and everything is about Trump and that becomes a problem because we the miss the real stories out there right now and I think the real story out there is the slowdown in the rest of the world.”
There is more to the discussion so enjoy it above.
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