Tag Archives: dumping

Bits and Pieces – 20180804, Saturday

Trade War

Richard Duncan wrote The Dollar Crisis revised in 2003. I reread it in 2008 at the height of the financial crisis and it read as if it had just been written, it so closely followed the crisis. No other book have I read twice, and no other economist do I have greater respect for. Here’s a rare piece from him: Podcast: Deconstructing Trump’s tariffs, turning point in history and the end of globalisation. If Trump’s trade war is not scaled back then expect this to come to pass.

To show how tariffs bring American jobs home, consider this: Harley-Davidson Begins Kansas City Plant Shutdown As Production Shifts To Thailand.

Who’s Dumping Treasuries?

Frequently when the Treasury Department or the Fed reports on foreign holdings of Treasuries, someone publishes a panic piece to the effect that country X is dumping their Treasuries. And from time to time we get articles on China’s doomsday weapon, the threat to dump their Treasuries. If we accept the idea of ‘dumping’ as a sudden massive insertion of some asset into a market, we will show in the post why there are large negative consequences and few positive consequence of trying to dump Treasuries. We will also show why dumping a large Treasury position may not even be possible.

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