David Rosenberg: Trump’s misguided approach to trade ignores uncomfortable truths – and puts portfolios at great risk

News Snapshot:

President Donald Trump and his mercantilist economics team operate with a lens that the United States has been totally ripped off by the rest of the world for many decades. The view at the White House is that trade relationships are totally lopsided. Reciprocal tariffs are one thing, but this goes way beyond that. For example, there now is chatter that the Administration will consider a proposal where select countries “will agree” to a restructuring of their U.S. Treasury note and bond holdings to century bonds offering no interest. Of course, this would have to be “agreed upon” voluntarily by...