Gongol.com Archives: January 2017
January 26, 2017
Mexican president cancels planned US visit
This is not the way to start relations between two countries sharing a large border, many common interests, and a great deal of economic interconnectivity. The United States has a giant vested interest in a politically stable, economically prosperous Mexico -- even if the President of the United States is willfully blind to that fact.
He's taking on the worst behavior of the Trump Administration in a clever and public way, and that's a good thing. The Trumpian notion of imposing high tariffs on imported goods is ridiculous and punitive -- not a smart way to fund anything (including a wall on the border with Mexico). Tariffs are funny things -- they look like a way to target "foreigners", but the fact is that their incidence depends on the relative slopes of the supply and demand curves. Cutting the check isn't the same as paying the price. Tariffs offer concentrated benefits to the workers they "protect", with costs shared among all consumers. That kind of recipe is really good for turning badly-formed political wants into reality.
To understand Russia's behavior, look at the price of oil
The Russian government depends heavily upon income from the oil business. With that income in retreat, it should come as no surprise that the government there is looking to asymmetric power plays (like trying to interfere with Western elections) and headline-grabbing displays of power. Economic strength speaks for itself; weakness begets the kind of behavior we see in wounded animals.
Marketing company sets up deal to put temporary advertising wraps on personal vehicles. Why not? Commercialism is the American way.
Cash flows in China tilt the world's property markets
As the Chinese government has sought to keep its subjects from taking their money overseas, it's going to starve some of the world's hot property markets of interested buyers (and their money)