Folks, it’s not a “skirmish”. On the scale of trade warfare we are now at DEFCON 2.
At this very moment, the US is taxing $250 billion of Chinese imports or nearly half the total flow; and China is taxing $110 billion of its imports from the US or 85% of the flow.
And it’s soon going full monte. The Donald has repeatedly threatened to tariff the remaining $267 billion of Chinese imports if Beijing retaliates against his $200 billion, but, self-evidently, they already have.
So it’s time to start believing that the Donald will do what he says—-unhinged or not—under the trade file. That’s because he’s discovered the imperial presidency can virtually raise tariffs at will by abusing the rubbery enabling acts passed decades ago by Congresses which never imagined the Red Ponzi nor the Orange Swan which arose therefrom.
Today's Contrarian Reads
Nikki Haley’s Big Iran Lies
Nikki Haley appeared on Face the Nation this morning and told a huge lie on national television….We’re not going to give exemptions to Iran. We’re not going to give them any- allow them any money to continue to build their nuclear weapons [bold mine-DL] and so we’re going to continue to stay tough on this. […]
More Refutation Of The Great Browder/Magnitsky Scam
But the real red pill was a documentary by Russian filmmaker Andrei Nekrasov, which came to my attention a few weeks ago. Titled ‘The Magnitsky Act – Behind The Scenes’, it does a magisterial job of depicting how the director initially took Browder’s story on faith, only to end up questioning everything. The docudrama dissects, […]
Free Riding Investors Are Setting Up Markets For A Major Collapse
The biggest free riders in the financial system are bank executives such as Jamie Dimon, the CEO of J.P. Morgan. Bank liabilities are guaranteed by the FDIC up to $250,000 per account. Liabilities in excess of that are implicitly guaranteed by the “too big to fail” policy of the Federal Reserve. The big banks can […]
Central Bankers Go Full Retard—-Debating The Already Absurd 2% Inflation Target
Japan provides ample evidence of what happens to savers when the central bank holds down rates hoping for higher inflation. All Japan did was accumulate debt. Inflation went nowhere. What good does it do to set a target when you struggle for decades in the case of Japan and one decade in the case of […]
NYT In The Tank For The Deep State—-An Evisceration Of Its RussiaGate Tome
In a massive Times‘ article published on Thursday, entitled, “‘A Plot to Subvert an Election: Unravelling the Russia Story So Far,” it seems that reporters Scott Shane and Mark Mazzetti have succumbed to the same thinking that doubled down on Iraq. They claim to have a “mountain of evidence” but what they offer would be […]
11 Reasons Why The Topping Process Is Topping
In that column I wrote that tops are a process and bottoms are an event, at least most of the time in the stock market. If you looked at an ice cream cone’s profile, the top is generally rounded and the bottom V-shaped. That is how tops and bottoms often look in the stock market, […]
America’s Looming Abyss—All The News Unfit To Print
But the urgent question in Washington right at this moment is, in light of Rosenstein and Kavanaugh: how deeply can you divide a country, for political ends, before it bursts? And what will it take, what can still be done today, to pull it away from the looming abyss? That leaves the usual suspects, Schumer, […]
A Small Step Toward Sanity: Trump Folds On Nordstream 2
Since its first announcement I have been convinced the Nordstream 2 pipeline would be built. I have followed every twist of this story from my days writing for Newsmax. And the reason for my confidence can be summed up in one word. Money. Nordstream 2 simply makes too much economic sense for any amount of […]
The Four Worst Presidential Decisions Of The Last 60 Years
It’s admittedly a tough task to select the four most disastrous presidential policies of the past 60 years, given the great multitude to choose from. Here are my top choices and the reasons why I selected these from a wealth of policy disasters. http://davidstockmanscontracorner.com/?p=216525&preview_id=216525&preview_nonce=5792f2446b&preview=true
Good Job, C-Suites! You Issued Debt To Buy Stock, Now Rising Rates Will Whack EPS
What is different now – as rates are finally rising – is that as this debt comes due, it is unlikely that companies will be able to roll to lower rates than they are currently paying. A second source of upward pressure on average interest expense is the recent surge in leverage loan issuance, i.e., […]