Trade Wars

China Says It Is Ready To Assume "World Leadership", Slams Western Democracy As "Flawed"

"If anyone were to say China is playing a leadership role in the world I would say it's not China rushing to the front but rather the front runners have stepped back leaving the place to China," a top Chinese diplomat said, adding that "if China is required to play that leadership role then China will assume its responsibilities," he added.

Why Davos CEOs Think They Have Control Over Trump

While President Trump chose not to attend the elite extravaganza in Davos last week, choosing instead to lambast the great-est and good-est of the world's executives in their crony capitalist safe space, the cognitively dissonant CEOs reassured each other by saying 'ignore the tweets', confident that "if [Trump] knows the facts, he’ll respond according to the facts." It depends whose 'facts' those are, of course.

The Eight Forces That Are Pressuring Profits

If there is any economic assumption that goes unquestioned, it's the notion that profits will remain robust for the foreseeable future. This assumption ignores the tidal forces that are now flowing against profits.

'Protectionist' Obama Escalates Trade War, Slams China With Subsidized Aluminum Complaint

With all the partisan narrative defining Trump as a tariff-setting, anti-trade, economy-buster, we thought it ironic that free-trade-wunderkid Obama just escalated trade wars by bringing his administration's 16th trade-enforcement complaint against China with WTO, urging tariffs on subsidised Chinese aluminum, after accusing them of funneling artificially cheap loans from state-run banks to producers.

Frontrunning: December 30

  • Russia Set to Expel 35 U.S. Diplomats in Tit-for-Tat (BBG)
  • Trump’s Plan to Partner With Russia Faces Bigger Hurdle (WSJ)
  • Trump could reverse effects of Obama order on Russia (Reuters)
  • Gold Lures Investors Worried About Trade Wars and Trump Tweets (BBG)
  • Syria truce backed by Russia, Turkey, holds but clashes reported (Reuters)

Dave Collum's 2016 Year In Review - "And Then Things Got Really Weird..."

"Markets don’t have a purpose any more - they just reflect whatever central planners want them to. Why wouldn’t it lead to the biggest collapse? My strategy doesn’t require that I’m right about the likelihood of that scenario. Logic dictates to me that it’s inevitable..."

China "Shocked" By Navarro Appointment, As Trump Team Proposes 10% Import Tariff

The appointment of Peter Navarro to a formal White House post "shocked' Chinese officials who had hoped that Mr Trump would tone down his anti-Beijing rhetoric after assuming office. China will be even more shocked, however, if as CNN reports, Trump is about to implement a 10% import tariff, leading to an all out trade war with Beijing.