Tall Order

Många klokheter att gymnastisera hjärnan med.  

Time and Love, Bill Bonner
As time passes – and here, we flatter ourselves, perhaps, by thinking that we think more clearly – the conceits of youth… the illusion of timelessness… the passions and competitions – to have the biggest bank account, the biggest car, the biggest house, the biggest muscles, and the biggest you-know-what – all get dropped along the way, like discarded pianos on the Oregon Trail.

All that is left is the shriveled up, naked reality… of time and love.

And most of all, we use “we” in sympathy with all those sinners, half-wits, and jackasses that time and love destroyed completely… they who felt most intensely and horribly the vacant truth… leaving their poor, tortured souls writhing on some ashpit in Hell.

Wisdom comes at a price; we get older. But some people pay dearly… and get little for their money.

We are talking about two of the oldest and most celebrated people in the financial world – Warren Buffett and Charlie Munger.

Mr. Buffett was right about time and love. Those are the things that really matter. But they are both wrong about what they claim to understand best.

Many readers will reply that U.S. tariffs are just a negotiating tactic. But negotiating for what? For whom? A cheaper TV? Or a more expensive one? The whole trade war hype seems to make no sense, for a simple reason – it is senseless.

In the first place, there is no theory or experience to back up Trump’s claim that the Chinese will pay. The Chinese do not pay the tariffs; Americans pay them.

In the case of raw materials, such as steel and aluminum, the importing U.S. company pays the tariff, raising the cost of its raw materials. Then, the cost is necessarily passed along to the retail purchaser in the form of higher prices.

In theory, free trade – without government meddling – will always provide the most goods and services at the lowest prices. Any meddling will raise prices and hurt the meddler at least as much as, if not more than, anyone else. 

A win-win deal is one where people get to decide for themselves whose tomatoes they will buy. They choose the best ones at the lowest prices.

But government always exploits the many for the benefit of the few. In this rotten tomato deal, a few growers make more money, some of which finds its way into the coffers of the lobbyists and politicians that made it possible.

But where does the money come from? Every penny must come from the millions of consumers who pay the higher prices forced on them by the feds.

Win-lose, in other words. The insiders, cronies, and fixers come out ahead; the public loses.

And next week, we take up the bigger and more provocative subject…

In trade wars, government spending, deficits, tax laws, economic theory, Fed policy, and foreign policy… everywhere you look, win-lose deals are gaining ground.

Brexit's Downsides Are Caused by Our Own Government

by George Pickering

Brexit and decentralization are good things, but the unfortuante truth is that harmful post-Brexit policies are equally likely to be imposed by the UK’s own government as by the European bureaucracy.

Det blev en väldigt ”Tall Order” igen men många klokheter att gymnastisera hjärnan med.

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