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White House says no recession in sight, pushes China trade talks

19 August 2019

President Donald Trump's top economic adviser is trying to play down fears of a looming recession after last week's sharp drop in the financial markets.

President Donald Trump says the idea of buying Greenland from Denmark came up in conversations within his administration and that it's essentially "a large real estate deal".

The Wall Street Journal reports that President Trump has expressed interest in purchasing Greenland. "Of course, Greenland is not for sale".

Although Greenland politically belongs to Denmark, it is an autonomous territory that since 2009 has governed itself in all aspects but foreign, defense and monetary policy.

Kudlow is also defending the president's use of tariffs on goods coming from China, saying "we can not let China pursue these unfair and unreciprocal trading practices".

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A defence treaty between Denmark and the United States dating back to 1951 gives the USA military rights over the Thule Air Base in northern Greenland. The US Thule Air Base is located in the northern part of the island.

White House trade adviser Peter Navarro on Sunday dismissed the idea that last week's market volatility was a warning sign, saying "good" economic dynamics were encouraging investors to move money to the United States.

Mr Trump, who made a fortune in the NY real estate market and owns or licenses properties around the world, appeared to cast the idea from the perspective of a developer.

Trump suggested that Greenland is an economic burden for Denmark, saying Denmark loses nearly USD700 million a year "carrying it".

If teleconferences between both sides' deputies pan out in the next 10 days "and we can have a substantive renewal of negotiations", Mr Larry Kudlow said on Fox News Sunday, "then we are planning to have China come to the U.S. and meet with our principals to continue the negotiations". "So they carry it at a great loss", he said.

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The discussions resumed in June at the highest levels on the margins of the G-20 summit meeting in Osaka, Japan, between Mr Trump and his Chinese counterpart Xi Jinping.

"They tried to buy us in 1867, during (the) Second World War, and now they are trying again", local Kulusuk resident Bent Abeelsen told CNN last week.

Many years ago, President Harry Truman (1944-53) also wanted to buy that island, Kudlow said.

But markets were hit with a fresh surprise when Trump suddenly announced that as of September 1 he was imposing punitive 10% tariffs on $300 billion in Chinese goods that had so far been spared.

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White House says no recession in sight, pushes China trade talks