A Grown-up Look at Trump’s Trade and Rate Problems

There are two terrible problems for the new administration to deal with (other than faithless Electors and Oregon insanity which we will get to in a moment):  One is the trade problem and the other is the rate problem.

What we will focus on is propagation speed of economic change.  It isn’t like driving a Ferrari.  Or a Porsche, or a (insert personal fast car list).

No, it’s more like driving an oil tanker.  You put the helm  over then go grab a sandwich and come back in 15-minutes to see how the course change is going.

But first a few headlines as we get out the ViseGrips and pinch ourselves remembering this is still the same planet we were on 20 years ago.

Although it sure doesn’t seem like it, does it?

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Comments

A Grown-up Look at Trump’s Trade and Rate Problems — 4 Comments

  1. Buying a tripled levered (short) etf by a dyed in the wool chartist seems to be ignoring history. As all full levered etfs always deteriorate over time. Always. Triple/Double and one to ones are Day trading tools, period. WTF, over!

  2. Re: PPI Antacids–
    A few people really do need this best-working class of antacids, such as those with precancerous throat tissue that got that way from years of reflux. Most do not. In addition to the increased risk of kidney failure and stroke, long term PPI use (over 6 mo) has been associated with thinning bones, and a doubling of the risk of dementia in the elderly.
    So generally, changing eating behavior is best, occasional TUMS or Ranitidine next best.

    RE: Fixing debt with inflation–
    A classic government strategy goes by the technical name “Financial Repression.” It sucks purchasing power away from everyone’s savings..

  3. The worker differential makes sense up to a point and the point is it doesn’t cover the welfare expenses of those that have been dislocated as a result of these moves to foreign countries – and still not a word about taxation of Robots displacing workers as well – maybe that 35% im port tax covers the additional loss?