Rampaging Bears and the Machinations of Merchantilism
A must read from Jon Markman at MSN with some varied perspectives on the bears coming to play in the market and the resurrection of Merchantilism.
The mysterious analyst Mr. P sees the potential for a slide of as much as 20% over the next nine months. Why is he so negative on the market?
An arch-conservative, Mr. P has become highly concerned about the loss of confidence in President Bush both domestically and overseas. He faults Bush for not working hard enough at his job and hiring badly.
There should be little doubt that if the Democrats' message finds a receptive ear among the public, Mr. P says, there will be investor-paralyzing hearings (and possible impeachment) well into 2007. This is particularly true if, as rumored over the past week, key presidential aide Karl Rove is indicted for his role in the Valerie Plame affair.
As previously noted in these pages, there are many similarities between now and the mid 70's. In particular 1974, when the market slid 45% to a 12 year low amid the Watergate scandal, impeachment hearings and the resignation of President Nixon, not to mention dollar debauchery, and an energy price shock with its attendent STAGFLATION.
Markman notes, But that’s not the only big problem that Mr. P sees. He also frets over what he refers to as “neo-mercantilism.” Mercantilism... is a view that politicians, not business leaders, should guide international trade -- and that trade policy should serve strictly political ends.
Mercantilism is an unsettling type of economic warfare, says Mr. P -- an attempt to restore power to governments that was stripped from politicians by capitalism.
We concur with Mr. P's assessment and will go so far as to say that Russia's Putin, Venezuela's Chavez, Bolivia's Morales and Red Communist China are in the group.
Even Japan, Germany and America's Bush could all be considered merchantilist interests to varying degrees.
Mr. P concludes, You could almost call it the “weaponization of finance.” If it swells, much of the market freedom that we know today will shrivel, he fears, as countries withdraw into their shells and restrict world trade.
The mysterious analyst Mr. P sees the potential for a slide of as much as 20% over the next nine months. Why is he so negative on the market?
An arch-conservative, Mr. P has become highly concerned about the loss of confidence in President Bush both domestically and overseas. He faults Bush for not working hard enough at his job and hiring badly.
There should be little doubt that if the Democrats' message finds a receptive ear among the public, Mr. P says, there will be investor-paralyzing hearings (and possible impeachment) well into 2007. This is particularly true if, as rumored over the past week, key presidential aide Karl Rove is indicted for his role in the Valerie Plame affair.
As previously noted in these pages, there are many similarities between now and the mid 70's. In particular 1974, when the market slid 45% to a 12 year low amid the Watergate scandal, impeachment hearings and the resignation of President Nixon, not to mention dollar debauchery, and an energy price shock with its attendent STAGFLATION.
Markman notes, But that’s not the only big problem that Mr. P sees. He also frets over what he refers to as “neo-mercantilism.” Mercantilism... is a view that politicians, not business leaders, should guide international trade -- and that trade policy should serve strictly political ends.
Mercantilism is an unsettling type of economic warfare, says Mr. P -- an attempt to restore power to governments that was stripped from politicians by capitalism.
We concur with Mr. P's assessment and will go so far as to say that Russia's Putin, Venezuela's Chavez, Bolivia's Morales and Red Communist China are in the group.
Even Japan, Germany and America's Bush could all be considered merchantilist interests to varying degrees.
Mr. P concludes, You could almost call it the “weaponization of finance.” If it swells, much of the market freedom that we know today will shrivel, he fears, as countries withdraw into their shells and restrict world trade.
Comments