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
There's a lot of talk about the Yuan price of gold falling out of a price suppression channel. Both Zerohedge and Nomura have weighed in on this. The Yuan price of gold surged overnight to above CNY 8500 per ounce which is a major breakdown. But it's also indicative of something that has long been … Continue reading Has China Finally Lifted its Thumb off of Gold?
When I went outside this morning to wrangle my goats to milk them, I noticed something had changed. All of a sudden it was October. It was chilly in a way that only fall in North Florida could be, slightly drier and more temperate. While it was a cold, wet summer for the most part, … Continue reading Is Gold Decoupling from Debt?
There comes a point sometimes when you reach the limit of exasperation. In this very NSFW edition of the Gold Goats 'n Guns Hour, I channel my inner Kevin Smith to simply go off on the entire L'affair Browder and the latest moves by the who I'm calling the "Magnitsky Trio" to block President Trump … Continue reading Gold Goats ‘n Guns Live – Browder, China and Why Lindsay Graham Has Already Outed Himself
President Trump is using all of his financial weapons in his trade war. China is as well. And since the crisis in the Turkish Lira broke out a few months ago, I expected to see China to move to counter the intense dollar diplomacy Trump is engaging in. The devaluation of the Yuan was serious … Continue reading China Hits Trump Back As Trade War Escalates
This year's BRICS Summit was a big show. No question. The main event was provided by Turkish President cum Dictator Recep Tayyip Erdogan. Erdogan wants to a a "T" to the acronym, making them the BRICTS. Erdogan also made it very clear Turkey's shift away from the West will proceed faster if the bullying and … Continue reading Turkey is Getting off the U.S. Reservation
Lost in all of the geopolitical noise are some basic concepts of economics. It's no secret that China's economy has been built by their openly mercantilist economic policies. Mercantilism is, oddly enough, President Trump's dominant economic philosophy. It involves protection of domestic producers through high barriers to foreign investment and a cheap currency created through … Continue reading Is China’s Day of Reckoning Coming?
Sometimes math is a real bitch. Donald Trump is a smart guy. I know he knows math. Too bad he's ignoring it. Here's the gig. The title says it all. Government spending is rising rapidly. More actual money is flowing into the US economy. Where is that spending going? To buy cell phones, computers, cars, … Continue reading Record Deficits, Stronger Dollar Equals Record China Trade Deficit