Bill Bonner: Trump’s Trade Deals Are a Futile Conceit
"At the end of the Korean War, both North and South Korea were poverty-ridden hellholes. But they took different routes. And got very different results."
"At the end of the Korean War, both North and South Korea were poverty-ridden hellholes. But they took different routes. And got very different results."
"Millions of Americans are falling for a dangerous and destructive argument about the need for tariffs and other trade barriers."
"Government is the employer of first resort -- even when it has nothing much for its employees to do. That’s part of a tacit agreement between ruling families and citizens."
"New research adds to an increasing body of evidence that restricting opioid prescribing has not solved the opioid crisis but instead worsened it."
"Price increases are 'clearly a result of antisocial behavior by participants in the industry,' he said."
"The cause of the most serious problems in Obamacare can be summarized in a single word: Dumping. Group plans are dumping their sickest, most costly enrollees on the individual market. Within that market, health plans are dumping their most costly enrollees on each other. And individuals are dumping costs on other individuals by waiting to insure until they get sick."
"Was it General Eisenhower who saw more clearly than any of us?"
"The flattening curve pointed to a deep pessimism among bond investors who see the economy fading away its short-term boost from fiscal stimulus and tax cuts."
"An inverted yield curve has been a great tool to predict U.S. recessions, with the yield spread between three-month bills and 10-year notes falling below zero before each of the past seven slowdowns. But it doesn’t usually happen immediately. That means a recession could come in late 2019, in 2020, or even later. That probably doesn’t come as a surprise to most investors after one of the longest economic expansions in history."
"Beinner highlights the increase of global debt, now upwards of $237 trillion and the way the debt has been dispersed as risks to the economy. Rather than banks holding most of the debt as it happened in the financial crisis, this time it’s hedge funds, private equity and investment managers holding most of it. Also worrisome, he says, ratings agencies are again being overly generous with their appraisals allowing for companies with very high debt levels to gain investment-grade ratings."