A Decade of Headwinds
These headwinds will persist for the next decade or two.
The stock market is rallying hard after a brutal sell-off–not an uncommon occurrence. As we savor our winnings in the ship’s first-class casino, it’s not a bad idea to step out onto the deck and gauge the weather.
There are headwinds. Not zephyrs, not gusts, just steady, strong headwinds.
1. Presidents Trump and Xi view each other an as existential challenge to the future prosperity of the nation they lead. Neither can afford to lose face by caving in, and each has a global strategy with no middle ground.
2. Global trade / capital flows are all over the map. Uncertainty is the word of the moment, but perhaps the more prescient description is unpredictability: if enterprises have no visibility on the future costs of trade, commodities, labor and capital, they have little choice but to avoid big bets until visibility is restored.
3. The American consumer is tapped out. Credit card charge-offs are rising, auto loan defaults are rising, air travel is faltering–there are many sources of evidence t
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LewRockwell.com is a libertarian website that publishes articles, essays, and blog posts advocating for minimal government, free markets, and individual liberty. The site was founded by Lew Rockwell, an American libertarian political commentator, activist, and former congressional staffer. The website often features content that is critical of mainstream politics, state intervention, and foreign policy, among other topics. It is a platform frequently used to disseminate Austrian economics, a school of economic thought that is popular among some libertarians.
