Donald Trump just jumped the shark calling himself, "Mr. Tariff." He believes a trade deficit is akin to stealing the wealth of a nation. It isn't. Under normal conditions a trade deficit is simply a reflection of the difference in comparative advantage of one country's workers over anothers. And the value of the currency is … Continue reading Mr. Tariff Ups the Ante on China
With the markets waking up to the fact that Trump is truly economically illiterate when it comes to tariffs and trade we're seeing a major move in risk-off assets. I have a new Private Blog up for Patrons discussing this. You can access the Private Blog by pledging a minimum of $4/month at my Patreon.
UPDATE: Now stocks are selling off and the 2/10 spread is less than 10 basis points. Gold, however, refuses to sell off while the euro pulls back versus the dollar. Mike Shedlock over at Mishtalk noted yesterday that there have been a couple of troubling inversions in the U.S. yield curve recently. They happened in … Continue reading Recession Incoming or Something Worse? 2/10 Spread Collapses
I knew there was something wrong with Donald Trump's presidency the day he bombed the airbase at Al-Shairat in Syria. It was a turning point. I knew it was a mistake the moment he did it and argued as such at the time. No act by him was more contentious. It cost me hundreds of … Continue reading Trump Folds at G-20 on Everything
I've a new Market Report up for patrons covering the important news from the G-20 as well as month-end reports on gold, the Dow, and the euro. Also, per the request of a patron, I take a good, long technical look at Apple (NASDAQ:AAPL) post correction now that November has closed. To support more work … Continue reading Private Blog – G-20 Market Report for 12-3
Israel announced a major pipeline project from the gas fields off its shore involving four countries, terminating in northern Italy. The EastMed Pipeline could be one of the longest in history as well as one of the most technically difficult to pull off. The deal was announced on World Israel News a few days ago … Continue reading The Ins and Outs of Israel’s Pipeline to Europe.
George Soros is losing. He still thinks he's winning. But, in reality, he's losing. All around you, if you look closely enough, you will see the spectre of George Soros lurking behind the headlines. The caravan, net neutrality, regulating Facebook, the de-platforming of independent media, color revolutions and election meddling, refugee creation and manipulation, the … Continue reading Have We Reached Peak Soros?
There's a moment near the end of Ayn Rand's mostly brilliant Atlas Shrugged where she details the unveiling of various government-funded boondoggles whose development we track as the story unfolds. All of them end in tragedy and mass death. From trains asphyxiating their passengers to sonic weapons killing spectators, the hubris and ineptitude of the rentier class which … Continue reading Jumping the Global Warming Shark