Wall Street has turned the trade war into a religion

Steve Bannon, White House CS, believes Wall Street is beginning to blindly follow Donald Trump's bias that China is unfairly protecting its economy by staying away from the rest of the world.

"Wall Street is starting to fanatize, just like Trump," says Bannon, who has been a longtime critic of China.

Bannon also criticizes China's attempts to come up with a too-binding deal to end the years-long trade war. He thinks the Chinese are just being deceived. Last week, Trump signaled that he was considering a temporary deal with China, though his full preference is for a comprehensive and lasting agreement.

"Right now they're trying to outsmart the system," Bannon says. "They are trying to squeeze Trump. I think Trump is more a factor in stabilizing the situation. This is about moving the major production chains back to the US."

On Thursday, the deputy negotiating representatives of the two countries will resume talks in Washington. The Chinese are expected to address the trade debate first, leaving the issue of national security in the background.

Bannon says the key to the success of the 2020 election is China. However, candidates who successfully squeeze Beijing and show the potential to strike a deal quickly may prevail.

Source: CNBC

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