A Week of Marvels – Fat Tail Daily | Bonds & Fixed Income

Last week introduced more than the standard ration of shock. It was a week of marvels, and the primary miracle carried out by a public determine since Moses parted the waters of the Red Sea.

First the marvels. We had thought the trade wars had been fortunately resting of their graves. But final week, they rose up again…ghoulish and ghastly.

After the ‘reciprocal’ tariff program was deserted, the administration’s prime quack economist, Peter Navarro, had promised ‘90 deals in 90 days.’ And so, the trade negotiators went to work. But after three months, there have been solely three offers accomplished. One of them was with the UK, with which we had a trade surplus…and the opposite two — with China and Vietnam — are fishy and possibly gained’t stick.

Perhaps pissed off by the shortage of progress, the US president first lashed out at Japan and Korea. The Irish Star:

Donald Trump renews world trade battle with stunning 25% tariffs on Japan and South Korea

Then the trade battle salvos got here so sizzling and heavy, the press might barely keep up. USA Today:

President Donald Trump…threatened up to 200% tariffs on prescribed drugs and slapped a 50% tariff on copper imports that despatched copper costs hovering to an all-time high.

CBS took the subsequent one:

Trump threatens 35% tariff in opposition to Canada

And then NBC:

Trump says he’ll hit E.U. and Mexico with 30% tariff

The oddest of the tariff threats had nothing to do with trade, however with Brazil’s inner politics. New to the annals of ‘trade war’ historical past, the US president is now utilizing the risk of tariffs to affect inner politics in different sovereign nations. CNN:

Trump threatens 50% tariffs on Brazil if it doesn’t stop the Bolsonaro ‘witch hunt’ trial

In between the waves of tariff assaults, got here one other marvel. Back in May, the president was calling for a 1% cut within the Fed’s key lending fee. On Wednesday of final week, the demand bought multiplied by three:

“Our Fed Rate is AT LEAST 3 Points too high. “Too Late” is costing the U.S. 360 Billion Dollars a Point, PER YEAR, in refinancing prices. No Inflation, COMPANIES POURING INTO AMERICA. “The hottest Country in the World!” LOWER THE RATE!!!” Trump wrote on Truth Social.

In different phrases, POTUS says a fee cut of ‘three points’ — or 3% — would save the US more than a trillion {dollars} in curiosity. Just like that. But should you cut the yield on T-bonds by 75%…who would buy them? Nobody.

The Fed must ‘print’ the money…US bonds and the greenback would crash…sending the US into the long-awaited credit disaster, chaos and recession.

But the week was nonetheless not over. And as exceptional because it was to befoul the US economic system with trade boundaries and really pretend rates of interest, probably the most exceptional factor was nonetheless to return.

We solely convey it up as a result of it means that the empire actually has entered a darkish, degenerate part typical of a declining empire.

Pam Bondi is America’s prime cop — the Attorney General. And simply a couple weeks in the past she had probably the most explosive felony doc within the nation’s historical past, “right on my desk,” she mentioned. It was a ‘client list’ from a infamous pedophile whose buddies (with whom he apparently shared his underaged women) included some of the richest, strongest people within the world — together with Bill Clinton, Bill Gates, Prince Andrew, and (his best buddy for a number of years) Donald Trump.

We don’t know the place she stands on alien craft or the virgin start, however when Ms. Bondi tells us that one thing that important was ‘on her desk,’ we assume she would guard it along with her life. But on the close of final week, she swore didn’t have the ‘file’…and that she wasn’t going to search for it…as a result of it by no means existed. It was a miracle; the entire thing simply de-materialized.

In logic, it’s known as the ‘principle of noncontradiction (PNC).’ A proposition can’t be each true and never true on the identical time. It couldn’t each be there and never be there.

What then had been ‘on her desk?’ Maybe it wasn’t actually a doc that incriminated some of America’s richest and strongest residents, who had been now subject to blackmail. Maybe it was simply her purchasing record — two heads of lettuce and a six pack. Anyone might make that mistake — mixing up a doc that would blow up dozens of illustrious careers and shake religion within the worldwide elite — with a grocery record.

So, you’ll be able to’t blame Ms. Bondi. And the press has determined that it doesn’t matter who was on that record anyway; it’s actually simply one other inside politics story. Donald Trump:

What’s occurring with my ‘boys’ and, in some circumstances, ‘gals?’ They’re all going after Attorney General Pam Bondi, who’s doing a FANTASTIC JOB!”

But wait. Ms. Ghislaine Maxwell is presently strolling round a monitor, behind a chain-hyperlink fence in a federal jail in Florida. Assuming she does her time as ordered, and he or she retains up along with her train program, she’ll go across the monitor roughly 6,500 more occasions earlier than they let her out. Her crime was ‘sex trafficking of underage girls.’ And the query ‘the list’ was purported to reply was: to whom had been these women trafficked? Who was on the opposite aspect of the trade?

The press doesn’t need to ask. And the Deep State — now garrisoned by Bondi, Patel, et al — gained’t say. But if the shoppers by no means actually existed, why is Ms. Maxwell (daughter of suspected Israeli spy, Robert Maxwell) doing laps in Tallahassee?

Regards,

Bill Bonner,
For The Daily Reckoning Australia

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