Short Dollar, Long Gold; But Goldman's Hatzius Hedges Between Hard Data Catch-Down & Positive China Mood Swings

Having flip-flopped faster than a Tesla-owning libtard recently over his recession call, Goldman Sachs chief economist Jan Hatzius is rapidly trying to regain some credibility with his latest note, offering the classic 'CYA' approach that many economists are stuck with currently - talking out of both sides of their mouth at the same time as the potential for Trump's crazy tariff plan to work - and the resilience of the US economy - wreak havoc with the pressure top-down from the establishment PhDs to disavow anything but the 'free trade' that we currently exist under (where everyone gets the benefit of the always-willing-to-go-in-debt-for-consumption American consumer, while American manufacturers face 'fuck you' signs wherever they try to earn).

This week, Hatzius is forced to admit that Trump's aggressive approach to China may just be about to work... but, just in case it doesn't the hard-soft data divergence will end in a bloodbath of macro weakness.