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Trump views 50 years out of date, may trigger disruptive trade war: Paul Krugman

According to him, immediate issue is going to be confrontation not with China, but with Europe as the "steel tariffs" will hit Europe

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Trump is not taking his responsibilities seriously: Paul Krugman. Wikimedia Commons
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  • Paul Krugman criticises U.S. President Donald Trump
  • Paul Krugman is a Nobel Prize winner
  • Paul says Trump’ actions can cause a war

Criticising the US President Donald Trump for his protectionists policies, Nobel Laureate Paul Krugman on Saturday accused President Trump of not taking his jobs seriously. Following the protectisists measures taken by the US President, there could be “risks of disruptive trade war”, he said.

President Donald Trump has pledged to avoid any new foreign business deals during his term in office.
President Donald Trump is heavily criticised. Wikimedia Commons

“He does not take the job seriously. He doesn’t say to himself that I am the most important official in the world; I have better do my homework for understanding the issue. ..He just goes that these are my gut feeling and hires people who make him feel good…that is a frightening prospect,” Krugman said responding to a query on his perception on Trump. On the economic issues President Trump’s gut feelings are “protectionist” and his views of America were “50 years out of date”.

“He wants America a heavy industrial country in the way it was when he was a young man. That is not just going to happen but he attempts to make it happen, which is extremely disruptive to America and to the global as a whole,” Nobel Laureate said. Krugman said he was until recently optimistic that Trump’s protectionist policies would not see the light of the day.

“Until about two weeks ago, I was quite optimistic that it would not happen. The reason was not because the President would get good economic advice but because the US businesses are invested in a globalised economy. All the investments the businesses have made is based upon the assumptions that the open trading system would continue. There is an enormous amount of fiscal capital and a large number of jobs are dependent on these value chains,” he said at the News18 Rising India Summit here.

Also Read: Trump Not Backing Down on Steel, Aluminum Tariffs

Krugman further said: “I had assumed the influence of these business communities would be sufficient… that it would not happen. I am less optimistic now…we have seen reasonably sensible Economic Council Head was fired, completely irrational tariff (was) imposed on steel and aluminium.”

The President also called for more mental institutions and hospitals in addition to the idea of arming teachers.
Krugman says these actions of President can cause a trade war. Wikimedia Commons

According to him, immediate issue is going to be confrontation not with China, but with Europe as the “steel tariffs” will hit Europe. He said there are possible risks of “disruptive global trade war”.

Speaking on Chinese economy he said, “China is a financial crisis waiting to happen. China is a widely unbalanced economy…the country is sustaining itself with a credit bubble that is waiting to burst…There is a significant risk of Chinese bubble burst.”

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Google Gave Notice of it’s First Private Transatlantic Subsea Cable Project

Google picked undersea communications technology firm TE SubCom to design, manufacture and lay the cable for Dunant

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Google earlier became the first major non-telecom company to build a private intercontinental cable with its investment in the Curie cable. Pixabay

 In line with its global Cloud infrastructure expansion plans, Google has revealed its first private transAtlantic subsea cable project designed to bring high-bandwidth, low-latency and highly secure Cloud connections between the US and Europe.

Named Dunant, after Henri Dunant, the first Nobel Peace Prize winner and founder of the Red Cross, the cable is expected to become available in late 2020, Google’s Strategic Negotiator Jayne Stowell wrote in a blog post on Tuesday.

Google picked undersea communications technology firm TE SubCom to design, manufacture and lay the cable for Dunant.

“This cable crosses the Atlantic Ocean from Virginia Beach in the US to the French Atlantic coast, and will expand our network – already the world’s largest — to help us better serve our users and customers,” Stowell said.

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Google unveils first private subsea cable project. Pixabay

Google earlier became the first major non-telecom company to build a private intercontinental cable with its investment in the Curie cable.

“Cables are often built to serve a very specific route. When we build privately, we can choose this route based on what will provide the lowest latency for the largest segment of customers,” Stowell said while offering the rationale behind the decision to build Dunant privately.

Also Read-Google Rolls out ‘Morse Code’ Support on Gboard for iOS

“In this case, we wanted connectivity across the Atlantic that was close to certain data centres, but the reasons could also include the ability to land in certain countries, or to connect two places that were previously underserved, such as was the case with Curie,” Stowell added.

Google also took into consideration factors such as capacity and bandwidth for the decision. (IANS)