Throughout his career, Greenspan has mostly been a contrarian indicator. But he has been consistently right about trade.
Alan Greenspan says Trump's Tariff Policies are 'Insane' and I agree.
Former Federal Reserve Chairman Alan Greenspan called President Donald Trump's tariff policies "insane" and said "why we're doing it probably is very deep in the psyche of somebody."
Responding to a question about China at an event in New York on Wednesday, he said both sides lose out in such a clash.
"It's an excise tax, and people think of tariffs other than what it is, it's a tax and everybody engaged in warfare of this type, it would mean that you're withdrawing credit or purchasing power from a whole series of countries," Greenspan said at New York University. "There are victors and there are losers in a tariff fight, but that doesn't say that a more important issue is both are losing, it's just the winner loses less."
Greenspan also said the notion that China would outrace the U.S. in all economic respects "is a mistake," pointing to their lower gross domestic product per capital.
Greenspan is correct on that as well.
Greenspan BS Detector
It's usually easy to detect when Greenspan is right or wrong about something.
Generally, if the public agrees with what Greenspan says, he's wrong, and vice versa.
Art of the Deal
In this case, Trump's die hard supporters believe the crazy notion that Trump really understands the "Art of the Deal".