Joined Up Problems.
Global business is complex and interconnected. An apparently simple decision here can create unexpected ripples elsewhere. Nothing is quite as simple as it looks – there are few cheap tricks. Here are 6 linked thoughts to ponder:
1. The US Economy is robust, self sufficient, the consumer is king and the consumer is buoyant. We must maintain that strength.
2. But industry has gone global and is enmeshed in a complex network of supply chain interdependence. Cars, 5G, AI depend upon manufacturing, technologies, skills, and components from Europe the Americas and China. We must build trusting relationships.
3. We are not immune – US debt is a threat at home. High risk corporate debt here has trippled to $2.6 trillion in the last decade. Any black swan event could lead to these debts failing. We need to manage them with great care.
4. Moreover other nations are already at risk. A European collapse is on the cards, Turkey is facing a tipping point, Chinese growth is slowing, climate change and population shift are massive challenges that will not go away.
5. The US is not helping. Zenophobia, trade wars on all fronts are not helping. Repudiating long negotiated treaties is threatening trust amongst partners in the Americas, Europe and in China.
6. So we face a present and rising danger. There are too many black swans on the horizon – all would place short term little America wins at home in jeopardy, especially at risk would be the $2.6 trillion weak loans.
Foreign Policy, Foreign Trade, Foreign Relations are a vital part of homeland protection – they pose joined up problems and demand joined up solutions.
Going it alone will not cut it.
Have a good day, James.