More stick than carrot at Davos

Davos saw new excitement this year. The annual jamboree of world corporate and political leaders, who meet in the scenic Swiss alpine village annually, got a taste of the new world order as defined by Donald J Trump. For the world elites, there was a warning: “…if you don’t make your product in America, which is your prerogative, then very simply you will have to pay a tariff.” The third step: lower energy costs. The US, already the largest oil producer, would swamp the world with higher output; and Trump believes he can make a deal with OPEC to abandon production cuts. And finally: with inflation under control, Trump would demand the Federal Reserve lower interest rates, which would reduce borrowing costs for businesses and consumers.