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Politics : A Real American President: Donald Trump

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locogringo
To: Honey_Bee who wrote (139377)6/8/2019 3:36:41 PM
From: FJB1 Recommendation   of 457791
 
Trump Doctrine – Border and Migration Agreement With Mexico Likely to Produce Significant Results…
Posted on June 8, 2019 by sundance


The border and migration “ agreement” with Mexico is a smart move by President Trump. If you worry that Mexico won’t take any action, well, don’t underestimate the dynamic President Trump just put into play.

Financial investment flows based on expectation, probability and risk management. If you don’t think Mexico will follow-up with their end of the bargain; then you are predicting the tariffs will reappear in 90-days.



Overlooked by most of the financial pundits President Trump has pre-positioned risk management actuaries with the basis for their analysis and internal investment advice. In a similar move last year, President Trump suspended tariffs against China based on an agreement ( G20 summit in Argentina). After several months and a 150 page initial agreement of principle, China walked away from their prior promises and terms. The tariffs against China were immediately implemented at the previous rate.

That China example with tariffs is now the baseline for all multinational investment to consider as they review their current exposure in Mexico. If any financial investor (bank or corporation) believes Mexico will not adhere to the border/migration agreement, then by extension they are accepting/predicting the Mexican tariffs will take effect in 90-days.

Put another way… President Trump has just given notice to all global business interests to organize their financial affairs toward Mexico within 90 days.


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