#INTHEAIREVERYWHERE |
Vol. 16 No. 24 | Wednesday
March 8, 2017 |
On
Tuesday March 7, State Street Global
Advisors, the world’s third-largest
asset manager paid for and installed
a bronze statue of a defiant girl
in front of Wall Street’s
iconic bull statue. Artist Kristen
Visbal created the sculpture. |
He
speaks fluent Japanese, spends his
time off as an award-winning amateur
photographer, is an avid reader
and often is out on the ski slopes
as a Schuss-booming downhill racer.
|
After
145 years, Ringling Brothers and Barnum
& Bailey Circus will close at
the end of this season because animal
welfare activists have successfully
complained about the mistreatment
of their elephants.
FlyingTypers Set The Tone
One personal note: I must commend
Geoffrey Arend and his wife, Sabiha,
for creating the headline The Trump
Effect. Donald Trump So Far
My message should not be considered
political, but rather as an effort
to look at the possible effects of
the actions being proposed by the
Trump administration on the airline
industry. I have purposely not said
what actions I would take, as that
is a decision each airline needs to
carefully consider.
The Promise & The Hope
The promise of President Trump to
eliminate terrorism and stop nations
and organizations bent on attacking
neighbors who don’t conform
with their ideology will increase
U.S. business and the U.S. airlines
CRAF flights over the short term,
but in the long term, if successful,
it will reduce the funds channeled
into those military and protective
areas. My personal hope is that this
money will go towards manufacturing
improvements to help humanity and
funding research to cure diseases
and not just “treat” them.
To Grow U.S. Economy
The second goal of President Trump
is to grow the U.S. economy and to
restore it to its previous post war
levels. This will have many parts
to it.
Stock Market At 30,000 With the predicted increase of the U.S. dollar and the NY stock market growth to what some experts say will hit 30,000, The Trump plan would lead to manufacturing growth and a significant increase in the flow of air cargo goods to and from the U.S. to those bilateral trade partner countries, establishing increased trade flows between the other countries.
Imagine A New World If President Trump can do all this and lower the cost of U.S.-manufactured finished goods to be competitive through tax reductions and economy of scale with a focus on quality and the expansion of new technically advanced manufactured items, the Trump Effect could very well create a large global market for U.S. manufactured goods and parts carried by air.
Trading Partners Now, who will those trading partners be? As I said in earlier articles, the airlines that predict the Trump Effect right and adjust their schedules and tariffs accordingly will be huge winners.
About The Deficit
The trade deficit in the United States
was USD 502.25 billion in 2016, at
the highest annual level since 2012
and a 0.4 percent increase from 2015’s
gap of USD 500.36 billion. Exports
rose 2.7 percent, boosted by higher
sales of U.S. civilian airplanes and
aircraft engines. Imports were up
1.5 percent, including a rise in car
imports.
Reality Focus & Things To Come
So, let’s look at the signs
the Trump administration has put out.
Checking Numbers
The balance of trade between the U.S.
and Canada is about USD 11.9 billion.
China Is The Big Kahuna
But the larger target of President
Trump’s effort for balanced
trade to improve the U.S. economy
must be China, where the U.S. has
a USD 347 billion trade deficit.
Other Players
The United States has been running
consistent trade deficits since 1976
due to high imports of oil and consumer
products.
Countervailing Tariffs
One of the tactics that President
Trump has voiced is imposing countervailing
tariffs not just on China, but on
any American trade partner that cheats
on its trade deals using practices
such as currency manipulation and
illegal export subsidies.
The China Case
China’s state-run industries
significantly undercut foreign manufacturers
and NAFTA.
War Undeclared
China has been waging an undeclared
trade war on the U.S. since joining
the World Trade Organization in 2001.
The reported U.S. casualties alone
amount to more than 50,000 American
factories shuttered and zero gains
in real household median income.
The 45% Tariff
Perhaps most concerning of the possible
future action with China, at least
to Wall Street, are possible tariffs
on goods imported from China into
the U.S.
Looking Ahead, Stay Tuned
There are still many other facets
of the Trump Effect to be discussed
ahead, including what will impact
the airline industry (such as Regulatory
Reform); finding ways to train more
qualified pilots to fuel the growing
U.S. airline industry; new technology
research on fuel cells; new aircraft
design development; free flight; the
effect of President Trump’s
meeting with the U.S. Airline CEOs;
the growth in U.S. infrastructure,
etc.
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If
You Missed Any Of The Previous 3 Issues
Of FlyingTypers Access complete issue by clicking on issue icon or Access specific articles by clicking on article title |
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Vol. 16 No. 21 Atlanta EZ TruckPass Standard Of The World Chuckles for March 1, 2017 Reality Check For High Fliers South African Forwarders Leading The Way |
Vol. 16 No. 22 Long Road To Tomorrow—The Biofuel Story Chuckles For March 3, 2017 |
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Publisher-Geoffrey
Arend • Managing Editor-Flossie Arend • Film Editor-Ralph Arend • Special Assignments-Sabiha Arend, Emily Arend • Advertising Sales-Judy Miller |
Send
comments and news to geoffrey@aircargonews.com 100% Green |