This was the week that economic nationalists in the U.S. and China finally put their own economies ahead of multinational profit. As depicted here:
For any small business owner or employee who ever wants to have any economic upside, this was a seminal moment. I have to give Trump his due credit. He waited until his tax cut was passed to start a trade war with China. Now that Wall Street and the Supply Side cabal are balls deep in risk, he pulled the rug out from under them. Those who've said that Free Trade is the only path to create broad-based prosperity, have created the exact opposite, broad-based insolvency. But they will never admit it, because to admit that fact would be to admit that they've been liars their entire lives. So what did they do instead all week? Lie constantly, what else. With Larry Kudlow as their trusted spokesman. This time they were only lying to themselves. The quote of the week is from Kudlow who was reassuring Wall Street all week - as he now informs them that he's no longer in the loop, after less than a week on the job.
"You're fired, Larry"
What a fucking week.
The worst start to a second quarter since the Great Depression, amid the worst trade war since the Great Depression.
Bueller?
Amid all of this chicanery, here is where it gets interesting:
‘I have never seen a market this volatile to this extent in my career. Now that’s only 66 years, so I shouldn’t make too much about it, but you’re right: I’ve seen two 50-percent declines, I’ve seen a 25-percent decline in one day and I’ve never seen anything like this before.’
Jack Bogle, Vanguard Group founder and retired CEO
"It's a good deal more volatile than almost anything else you've seen," said Cashin, who began his career at Thomson McKinnon in 1959. "It is unfortunately reminiscent of some of the volatility we saw in '87,"
"Goodbye"
