September 30, 2018 | Lodhi’s Speech at UN
September 29, 2018 | China rebuts US allegations
| Russian missiles challenge
September 28, 2018 | Iran defies America
| Britain and the EU
President Donald Trump’s dilemma: President Donald Trump continues to draw very unfriendly fire in the mainstream media for imposing tariffs on imports in the face of menacing trade wars.
Here’s a connected complication: Trump had promised to plow US$1.5 trillion into America’s infrastructure. This included road and rail facilities, as well as airports and power grids.
His campaign promise now faces difficult passage through Congress as it requires $ 200 billion in federal, and US $1.3 trillion of State and corporate funding.
Analysts don’t see this coming around in any great hurry as US States and how are reportedly not in a position to come up with their share of fund and much indigenous corporate funding will be found forthcoming is unknown.
“Hardly anyone believes that US$200 billion federal dollars will produce an additional US$1.3 trillion investment from non-federal sources, when state and local budgets are being squeezed by rising costs for education and healthcare”, reads an Asia Times review.
Analysts note US $1.5 trillion is required to repair key transport and power networks of which 80 percent is usually federal and 20 percent State funded, against Trump’s 10 percent federal and 90 percent corporate funding.
Earlier speculation was that Japanese and Chinese companies would be allowed to participate in the bidding. This has not so far proven to be the case.
While Japanese corporate inclusion may be eventually found palatable as the country is a close US ally, it appears China is to be kept at arm’s length.
An early indication of this was when China’s CRRC bid for new subway cars to New York City in a US $1.4 billion contract was passed over.
A deficit-neutral system of tax credits to raise the balance $1.3 trillion is envisaged for US infrastructural advance, but how this is to be achieved, remains unclear.
Europe might invest as its related technology is advanced: the EU does have the high-speed rail infrastructure Trump seeks, but the Europeans are wary of Trump’s foreign policy pursuits.
This notwithstanding, not investing in the world’s largest economy would be a mistake EU conglomerates are not likely to make but they will likely wait for Congress to weigh in on the side of tax increases for federal funding first.
At this juncture only Chinese Federica Mogherini corporations can invest without such funding and therein President Trump’s dilemma.