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Bill Gates: Another Financial Crisis Like 2008 'Is a Certainty'

Image: Bill Gates: Another Financial Crisis Like 2008 'Is a Certainty'

By    |   Wednesday, 07 Mar 2018 03:05 PM

Microsoft co-founder Bill Gates warns that America will certainly soon face another recession similar to the 2008 financial crisis.

During a recent Reddit "Ask Me Anything," when Gates was asked if, in the near future, the U.S. will have another crisis similar to the one in 2018, he offered a blunt response: "Yes. It is hard to say when, but this is a certainty."

He added, "Fortunately, we got through that one reasonably well.”

Gates concluded his response by saying, "Despite this prediction of bumps ahead, I am quite optimistic about how innovation and capitalism will improve the situation for humans everywhere."

Many experts fear that President Donald Trump's planned tariffs could be the trigger of the next major financial and economic crisis.

The resignation of Gary Cohn as top White House economic adviser roiled markets Wednesday, sending the dollar down against the yen and U.S. stocks lower. While global equities recovered from a trade-induced blow last week, graver concerns are emerging.

The White House said late Tuesday that Cohn is leaving his post, a move that followed his apparent loss in a battle to halt U.S. tariffs on aluminum and steel.

A separate report showed President Donald Trump’s administration is considering imposing tariffs on a broad range of Chinese imports for its alleged theft of intellectual property -- a further sign of protectionist advocates’ influence on the agenda, Bloomberg reported.

Deflecting the criticism, Trump hinted on Wednesday that his restrictions on trade could run even deeper, citing China’s alleged theft of intellectual property. The U.S. is said to be considering clamping down on Chinese investment and imposing tariffs on a broad range of goods to punish Beijing over unfair intellectual-property practices as part of an ongoing U.S. investigation ordered by Trump.

“The U.S. is acting swiftly on Intellectual Property theft. We cannot allow this to happen as it has for many years!,” the president said in a tweet.

The U.S. trade deficit widened to a post-recession high in January of $56.6 billion as exports declined, figures that could bolster Trump’s argument that the U.S. is losing in global trade. China accounted for almost half of the shortfall in a separate measure of the deficit in goods.

Republican lawmakers are pressuring Trump to at least curtail the tariffs by exempting certain products or countries.

Meanwhile, International Monetary Fund Managing Director Christine Lagarde said the consequences of the U.S. imposing tariffs would be “serious” and could likely trigger a trade war that would be detrimental to global growth.

The threat of retaliation and escalating tit-for-tat penalties damaging growth around the world is already rising. The European Union has warned it would respond with its own 25 percent tariff to hit $3.5 billion of American goods. The bloc is targeting iconic U.S. brands produced in key Republican states on a range of consumer, agricultural and steel products, according to a list drawn up by the European Commission.

Treasury Secretary Steven Mnuchin in an interview on Wednesday said the Trump administration is prepared to suffer retaliatory blows against the U.S. for steel and aluminum tariffs, but won’t flinch from the fight to make sure American products are treated fairly in international trade.

“Our objective is not to create a trade war but our objective is to make sure U.S. companies and workers are treated fairly,” he said by phone. Trade is a cornerstone issue of Trump’s economic agenda, along with tax cuts and deregulation, he said.

(Newsmax wire services contributed to this report).

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Microsoft co-founder Bill Gates warns that America will certainly soon face another recession similar to the 2008 financial crisis.
bill gates, financial, crisis, certainty
Wednesday, 07 Mar 2018 03:05 PM
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