Trade Wars – There’s A Lot More At Play Then Tariffs

March 13, 2018

John Rubino joins me today to continue our discussions on tariffs and the bigger picture of trade wars. The recent tariffs which Canada and Mexico are just the start of what could be a busy year for analysts both from the markets side and political side. Free trade can be positive for many countries and people but it is never that easy.

Click download link to listen on this device: Download Show

Click here to visit John’s site for more market and economic commentary.

    Mar 13, 2018 13:06 AM

    I don’t know if Trump reads all the trade documentation put out by the US Government.
    In fact, I hope he does not, because the analysis is immense.

    e.g. for Aluminum:

    The US has over 8,000 slots into which it places imports. Much too much info for one man to absorb, but I assume that Trump has good advisers. I hope, as a businessman, he has better knowledge in this area than a politician, who has probably spent little time in the real world of industry.
    President is faced with a choice of overseeing a gradual decline of the US as wealth is handed over to other countries via trade deficit or attempting to reverse the situation.
    The ONLY VIABLE TOOL he has to directly affect trade is a tariffs or import duty.
    May he use the tool wisely.
    (At least he is trying to do something)

    Mar 13, 2018 13:25 PM

    Hugo Salinas Price has made the most interesting commentaries on the tariff theme that I have seen:

    “…the Exorbitant Privilege of the US, the production of the world’s fundamental currency – which allows it to purchase anything in any amount, in any place, at any price – produces automatically the fundamental need of foreign countries to undersell US producers.”

    The monetary system is the root of the problem. Time to throw the money changers out of the temple–End the Fed.

      Mar 13, 2018 13:26 PM

      Some Reflexions on History and Economics
      Tuesday, 23 January 2018
      Hugo Salinas Price

        Mar 13, 2018 13:03 PM

        GH….Thanks for those two links to Hugo, two very good reads.

          Mar 13, 2018 13:11 PM

          BTW. The mexican libertad is one of my favorite silver coins , maybe its something to do with the Boobys……………………………….haha

          Mar 13, 2018 13:45 PM

          My pleasure.

          Given Señor Price is a billionaire retailer out of Mexico, with one American parent I believe, he certainly is in a position to understand what he is talking about.

      Mar 13, 2018 13:15 PM

      I second that motion.
      Sneaky and underhanded, the Federal Reserve has been sucking the life blood out of the United States since 1913. Like a black widow spider, it weaves a web of corruption and deceit. Unknown to its prey, the FED’s bite is poisonous, deep, long-lasting and brings financial upheaval and misery to Americans.”
      ― Jim McCarthy, The Money Spiders, the Ruin-NATION of the United States by the Federal Reserve

        Mar 13, 2018 13:55 PM

        There is no free market as long as there is a central bank so leftists who blame free markets for the problems they see are ignorant. Central banking is a Marxist scam.

    Mar 13, 2018 13:49 PM

    Rubino has been so wrong for so long I wonder why anyone would listen to this one trick pony. Other than a scam website what has he done? Show me the money. The only money he ever made was by putting up a very poor website and linking other, more lucid folks. His depth of understand of basic economics is very shallow. Very boring. And why does he laugh like a teenage kid after every point he makes?

    Mar 13, 2018 13:01 PM

    Considering what Trump has accomplished so far, I think the word “idiot” doesn’t describe him in any sort of way. Makes me wonder of the idiocy of who trash him.

    Mar 14, 2018 14:02 AM

    That article and the two above were “on the money”.
    Not one commenter on this site has been close to being correct about the trade deficits and teriffs. But hey, if they are wrong and no one knows it, does it matter? Heh heh

      Mar 14, 2018 14:12 AM

      I find the contradiction between Buchanan’s and Price’s points to be interesting–in theory tariffs could help an economic recovery (Buchanan), but because of the flawed nature of the monetary system that Price points out, tariffs are not likely to work that way for the US at this point in time.

    Mar 14, 2018 14:40 AM

    A true gold standard balances trade.

    Mar 14, 2018 14:46 AM

    $XAU printed a black candle yesterday. Like $HUI, it has not left a single black candle behind on the daily chart going back to the low on January 19th. Yeah yeah, I know, black candles are common and are meaningless. I would agree that they are less meaningful for other indexes and stocks, but facts are facts with $HUI and $XAU daily charts. Unless this time is different.

    Mar 14, 2018 14:46 AM

    January 19, 2016 that is.

    Mar 14, 2018 14:02 AM

    GDXJ’s 144 WMA crossed above the 233 WMA, but barely, recently. It would be a pity to see it close below the 233 WMA (currently at $31.03) at this point.

    It’s pretty disappointing that it hasn’t bounced hard off of either MA in recent weeks.