In een recent AD artikel, over de dollar daling, staat deze vraag: "Moeten we ons nu zorgen maken, of is dit juist goed nieuws?" In 1971 sprak de Amerikaanse Minister van Financiën John Connally reeds deze woorden: "De dollar is onze munt maar jullie probleem". Een US$ daling maakt Amerikaanse export (o.a. gas, olie) goedkoper, en maakt de Amerikaanse import...
The continuous - and increasingly ridiculous - import tariff threats by the American president, makes me wonder if he already knows the forthcoming SCOTUS verdict. Losing could well explain his ridiculous threats. Winning could, however, also explain the forthcoming SCOTUS verdict. The absence of that verdict - about the legality of import tariffs - could well imply...
Intro LO: I’ve decided using the Wall Street Journal article (below) because this type of crisis is unknown in Europe. Probably because Europe favours fair inequality while America favours unfair inequality (eg, my 2018 blog, a 2017 Yale study). I agree with the author (below): the American ‘Affordability Crisis’ cannot be solved. Neither can other American crises...
Intro LO: The one thing that the American president cannot hide (eg, U.S. labour statistics), and/or control (eg, Fed interest rates) is the international currency valuation of the US$. Hence, this article's title - that the market's bearish bets on the dollar continue to grow - should hardly come as a surprise. Moreover, lowering American interest rates in an...
Intro LO: In a market economy, lower consumer demand is compensated by lower (eg, manufacturing) supply in order to maintain consumer prices. Lower demand without lower supply, will cause high inventories, and the need for price reductions in retail and wholesale. Latter is called (price) deflation. Clearly, China does not quality as a market economy given the very...
Various articles discuss who has won the trade war between Europe and USA (eg, Politico-1). Apparently, the more taxation, the better. Seriously?? This lack of perspective worries me. France (and others) complain about the lack of reciprocity of import tariffs for USA (eg, Politico-2). Such articles forget - or ignore - some very important things: Impact of import...
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