Is US Strategy Divide and Rule

Is US Strategy Divide and Rule?

This week will see Theresa May meet Donald Trump and no doubt offer political spin to assist both sides.

What surprised us this week in a report from the BBC is that the man who may be appointed to be the US Ambassador to the EU, Professor Ted Mulloch allegedly said that:

• The Euro “could collapse” within 18 months.
• The UK could have a trade agreement within 90 days of leaving the EU.

This set us thinking as to why these comments could be made.

Our conclusion is plain and simple:  Divide and Conquer.  Re-stablish the US as the global economic force on the planet.

The US will look to control China’s expansion with either a trade war by forcing China to lets its currency and exchange rate float on the commercial market (rather than China controlling its exchange rate centrally) or impose high import tariffs.

Russia again is not there yet as a global economy but is rising and President Trump is looking to influence.  Europe has

So what other global power remains?  None, just the combined trading power of the EU.

2015 GDP Figures:

1. China $19.5bn
2. EU $19.1bn
3. USA $17.9bn

In terms of GDP (2016), China is followed by USA then Japan, Germany, UK and France.  It makes senses given Trump is tearing up Pacific and potentially North America free trade agreements (which are comparatively small) and maybe they are looking to the EU with three of the World’s top six economies by GDP in Germany, UK and France.

We suggest, with UK leaving the EU, the USA will welcome the UK with open arms, tempting other EU members to consider the same.  Make no mistake, any trade agreement between the US and UK will be in US interests directly or indirectly.  Britain needs a US deal and we suggest the US, indirectly, needs the same to then weaken the EUs power position.