US and China are at risk of a '10- or 20-year' economic cold war, former Fed governor Warsh says

•The U.S. relationship with China is "probably as poor as" it was before the Nixon administration opened up ties more than four decades ago, says Kevin Warsh.

•"Five or 10 years from now we might see two poles: a Chinese-centric world and an American-centric world," the ex-Fed governor says.

•Warsh says the U.S.-China dynamic is bigger than President Trump, adding "whoever is sitting in that seat will have a new relationship with China."

The U.S. relationship with China is "probably as poor as" it was before the Nixon administration opened up ties more than four decades ago, former Fed governor Kevin Warsh told CNBC on Thursday.

"We're at the risk of a real cold war" between the world's two biggest economic superpowers, said Warsh, who had been on President Donald Trump's short list for Fed chairman before Jerome Powell was chosen. "The last 30 years we've been living and breathing globalization as if it's an inevitable force."

Warsh was using the term "cold war" to mean an economic standoff, not the decades-long "mutually assured destruction" nuclear stalemate between the U.S. and Russia that began to thaw in the detente period that led to the fall of the Berlin Wall in 1989.

https://www.cnbc.com/2018/10/04/us-a...vin-warsh.html