A rules-based order established in 1945 has reliably channeled capital to the West, but according to his former White House communications director, Donald Trump’s stance on NATO threatens to destabilize that system.
Speaking at the ASFA Investment Summit on Thursday, Scaramucci criticized Trump for seeking to dismantle the order, which he said has been vital to fostering innovation and economic stability.
“It is a rules-based world order. Yes, we have our adversaries, but there are certain ground rules regarding how we operate with each other. And that has led to a steady flow of capital for big innovations and big ideas in the West,” Scaramucci said.
“So when you think about the United States Navy, for example, it has done more over the last century to protect your economy than any other engine of the economy, because of the shipping lanes for energy, for the manufacturing industry, all of that. it is very difficult to compete with the current US Navy.
“So what don’t I like about it? [Trump] what he wants to do is he wants to roll this back.
One of Scaramucci’s main concerns is Trump’s proposed isolationist policies, including abrogation of trade agreements and withdrawal from NATO, which overlook the benefits the United States derives from maintaining such alliances.
Using South Korea as an example, the former communications director said what Trump doesn’t realize is that in exchange for stationing 14,000 U.S. troops in the DMZ, [Korean Demilitarised Zone]the United States benefits from discounted goods and services from Korea.
“We benefit directly from it, but it fails to solve this problem,” Scaramucci said.
Scaramucci strongly supports the idea that the world needs a single military hegemony to ensure peace by suppressing global tribal conflicts, a role he believes the United States has historically performed well and could lose if Trump is elected.
“When someone like me explained something like that to Mr. Trump, he didn’t care.
“Rather than listen to you like a good executive would… he will try to crush you… Intellectual insecurity motivates him, which makes him very dangerous.”
Regarding China, Scaramucci said he believes the United States must proceed cautiously and focus on finding ways to coexist with China to avoid escalating tensions and potential conflict.
“That’s something that Mr. Trump is not thinking about in the way that he needs to, in my opinion.”
Looking ahead to the upcoming election, Scaramucci believes Kamala Harris has a real chance of defeating a more right-leaning Republican Party, but to win she needs to appeal to the citizens of Illinois, Indiana, Michigan , Missouri, Ohio, Pennsylvania, West Virginia, Wisconsin and parts of New York State.
“[These] “people have become economically desperate and Trump’s message resonates with them,” he told ABC. 7:30 a.m. this week.
“Her economic program is actually working, and Americans may not feel it today, but she can go to the heart of the country and she could explain to them what she and Joe Biden have been doing, which actually creates a good setup for the next four years…but she needs to come out and express this.
In July, before Harris became the Democratic nominee, AMP’s Shane Oliver warned that Trump’s views on tariffs, immigration and the independence of the Federal Reserve were of great concern.
“Overall, Trump’s policies point to a further explosion in the U.S. budget deficit and rising inflation,” Oliver said.
“His proposed tariffs of 60 percent on imports from China and 10 percent on all other imports would increase the average U.S. tariff from 3 percent to about 17 percent, close to the 20 percent which applied after the Smoot-Hawley tariffs of the time. 1930s.
“This could add about 2.5 percent to U.S. consumer prices. [as importers would seek to pass the tariff on or have to use more expensive suppliers] and it would reduce U.S. GDP by about 0.5 percent. And it’s hard to imagine that other countries wouldn’t respond to the U.S. declaration of trade war with their own tariff hikes, which would deepen the impact on growth, as we’ve seen. in the 1930s.”
Higher budget deficits and inflation, Oliver added, would be detrimental to U.S. and global bonds, which would, in turn, negatively impact stock markets.
“Australia would be particularly vulnerable,” he said.
Also at the time, Oliver suggested that Trump’s prospects could change significantly if a strong Democratic candidate were to replace President Joe Biden.
