Karl Denninger with Max Keiser
Karl comes in at around 12.30 mark.
Mish with Max Keiser
I come in around the 12:35 mark.
Thanks to Max and Stacy.
Mike "Mish" Shedlock
"trade war",china an industrial power house commie slave state in one corner,annnnd USA (lol) a bankrupt, part time minimum wage temp nation that produces nothing (other than dept).Who's got moar to lose?
China: slave wages and destroying the environment as competitive advantages using mercantilist policies to tie Yuan first to dollar and now to a basket of currencies where dollar and Euro are most weighted to make sure exports to USA and EU flow.
USA: Consumption has continued with ever increasing levels of debt for people, companies and government so multinational companies have got their profits despite taking away the jobs and the tax base from the jobs and factories because people keep consuming in debt aided and abetted by FED. Economy is based on a bubble-after-bubble where high paid jobs are based on speculation while at the same normal people are made to take the offshoring of jobs in the chin and the situation is worsened by importing tens of millions of illegals. Multinational companies and large companies have also been able to increase their profits because the FED enabled debt increases have kept consumers consuming while the cost of production has dropped thanks to taking production to China (or Mexico) so the stock prices are sky high because the profits enabled by offshoring production and continuing consumption based on debt are high.
Conclusion: This can NOT last. FED policies together with China (and Mexico) have enabled an economic suicide committed by USA under George W. Bush (allowed China to WTO) and Barack Obama and people most benefiting are those 1% that own most of the stocks. The other 9% elite have also benefited a lot with some trickle down for speculative professions like realtors and finance. 90% of Americans have got NOTHING but DEBT.
Trump should put more tariffs so that when he puts tariffs on steel and aluminum he also should increase the tariffs for steel and aluminum products the same amount so US buyers do not switch from US nail manufacturer to foreign manufactured nails as an example.
Two stupidest economic decisions:
Trump is using Tariffs to force a better trade deal. Considering the US has gotten screwed for way to long, what's wrong with Trump's tactics? What would be your solution, other than exploiting other people.
Karl Denninger is a complete ignorant, arrogant moron who knows nothing about Economics. He should be getting zero air time from anybody.
Trump is starting trade wars with China, Europe, Mexico, Canada, Japan, Korea, Etc. at the same time. This hurts US consumers and businesses. Everybody loses with trade wars. It’s a terrible strategy.
Bilateral trade negotiations (which are long overdue, btw) are now referred to as "Trade Wars". Gimme a break.
The militaristic/death cult-like hyperbole that is so casually thrown around here is just too ridiculous to ignore... trade WARS?!?!? Really?
None of the tariff stuff will be around long-term... it's all posturing... so everyone can stop wetting their pants every time DT threatens 'tariffs' rhetorically. Change your diapers, and wait until you taste the omelette before filing lawsuits over cracked eggs, FFS.
Pointing to a few increases in steel employment at the loss of employment in industries that use steel in their product when those employed in steel consuming industries makes no sense. It's not even clear to me that steel wages go up, just that a few more people are involved in producing steel. also lost is that productivity gains means fewer and fewer additional employees gain as production increases.