|I spent a good deal of time yesterday writing a take on a recent Barron's article about the economy, and finding this morning that it didn't "take". That extra step required after composing a message sometimes skips my notice, if that is what happened.|
As best as I can recall, the story raved about multiple good news on the economy coming in the last couple of days of last week. A lot of worries are now off the market. My commentary following the link was about something related that others have not reported upon as of yet.
One of the pieces of news was about an apparent trade deal with China, part of which should be completed soon, with the remainder still subject to further talks. From that, I gather that China is covertly supporting Trump for president, or they have resigned themselves to the fact of his re-election. Were this not so, they could merely await our election hoping later to deal with Socialist-oriented DemocratIs. Is this not strange?
Perhaps they feel that Trump is reliable, and the devil you know is better than the one you don't. Alternatively, and despite how much a new trade deal may cost them, perhaps they feel that a Socialist-Democrats - redundant? -administration would be so disruptive of the world order that a US president from that party would be far more damaging to their interests than a deal with Trump now.
In conclusion, I remain convinced that the world is experiencing a deflationary boom. We in the US are suffering what seems to be low metals prices because the dollar is stable or improving against all other currencies. In other words, and in real terms, things increasingly are costing more elsewhere, which is not to say that increasing metals prices will not eventually come to the US. It is just that those increases will trail those priced in other currencies.