Thursday, August 2, 2018
China Is Losing the Trade War With Trump
One thing came through loud and clear in President Trump’s press conference Wednesday with European Commission President Jean-Claude Juncker. When they announced an alliance against third parties’ “unfair trading practices,” they didn’t even have to mention China by name for listeners to know who their target was. Cooperation between the U.S. and EU will squeeze China’s protectionist model, and even before this agreement, there’s been evidence that China is already running up the white flag.
Yes, China is acting tough in one sense, quickly imposing tariffs in retaliation for those enacted by the Trump administration. But while U.S. stocks approach all-time highs and the dollar grows stronger, Chinese stocks are in a bear market, down 25% since January. The yuan had its worst single month ever in June, and is well on its way to a repeat this month. Chinese corporate bonds have defaulted at a record rate in the past six months, yet this week China unveiled a new stimulus program designed to encourage even more corporate borrowing.
That’s probably why Yi Gang, a governor of the People’s Bank of China, took the extraordinary step of channeling Herbert Hoover, saying in a statement this month that “the fundamentals of China’s economy are sound.” And it’s why Sun Guofeng, head of the PBOC’s financial research institute, said, China “will not make the yuan’s exchange rate a tool to cope with trade conflicts.”
Weakening one’s currency is a standard weapon in trade wars, and one that China has often been accused of using—including in a tweet by Mr. Trump last week. Devaluation would be even more dangerous in this case because of China’s power to dump the $1.4 trillion in U.S. Treasury securities it holds. But by denying its intention to plunge the yuan, China has disarmed itself voluntarily. This was no act of noble pacifism; it had to be done. Devaluing the currency would risk scaring investors away, an existential threat to an emerging economy. For China, whose state-capitalism model has so far never produced a recession, such capital flight might expose previously hidden economic weaknesses.
These weaknesses accumulate without the market discipline that occasional recessions impose. The fragility of China’s economy can be seen in its growth rate, which is slowing despite rising financial leverage, and in its overinvestment in commodities and real estate. The escalating trade war with the U.S. could tip China into the unknown territory of recession—and then capital flight could push it into a financial crash and depression. That would create...
3-D Printed Guns Are A Reminder That Gun Control In America Is Futile
In case you missed it, Americans are up against yet another imminent doomsday scenario. If you weren’t already killed off by the repeal of the Affordable Care Act’s individual mandate, or by the Trump tax cuts, or by the repeal of net neutrality, or by Brett Kavanaugh’s nomination to the Supreme Court, we’re now told that you will certainly be killed by 3-D printed firearms.
In 2013, Cody Wilson and an organization called Defense Distributed released plans for the first fully 3-D printable gun: The Liberator. The design was named after the eponymous sheet metal pistol that the Allies airdropped behind enemy lines during WWII to arm resistance fighters. That gun was crudely made and unreliable, but it was far more successful as a propaganda point. In Nazi-controlled France, where private gun ownership was illegal, anyone could secretly have a gun. Even worse, they could use that gun to get their hands on a better gun.
Wilson’s plan was similar. Outside the Defense Distributed headquarters, Wilson is installing a tombstone etched with the words “American Gun Control.” The point is well taken. As gun control advocates look for new ways to chip away at the protections guaranteed in the Second Amendment, the Liberator undermines all of that. How can gun control possibly work when Americans can use a 3-D printer — now available for as low as $100 — to build their own firearms in the comfort of their homes?
The Obama administration used an obscure regulation governing military arms exports to force the Liberator designs off the internet. They reasoned that sharing the blueprint to build a gun online, where it could be downloaded by anyone on earth, was just as dangerous as exporting a machine gun or missile launcher overseas. But the fact that not one Liberator has been used in a crime, despite being downloaded over 100,000 times, should tell you all you need to know about the “risk” these designs pose.
The thought of Americans building their own guns may seem terrifying, but the truth is that homemade guns are as American as apple pie. When the American colonists declared independence against Great Britain, they faced a serious shortage of firearms. They scrambled to seize as many caches in the early days of the war as they could, but quickly found themselves outgunned by Britain’s well-oiled supply chains. That is, in part, why the colonies relied so heavily on militiamen. The militia was expected to show up for service with their own personal muskets or rifles, so there was no need for the colonial army to arm them.
The Continental Army would capture weapons and import them from overseas when they could, but they needed to source them domestically. The Continental Congress founded the Springfield Armory in 1777 and relied on a network of smaller gunsmiths scattered across the colonies to meet the army’s needs. Without that gunsmithing knowledge, the American Revolution could not have...
Donald Trump to Charles Koch: ‘America First!’
Story:
President Donald Trump continued to attack billionaire Charles Koch for his critical assessment of his tariffs on foreign products.
Koch told the media on Sunday that the tariffs were “ridiculous” and “unfair” to foreign countries and foreign workers.
“He is correct, AMERICA FIRST!” Trump wrote, after highlighting Koch’s remarks on Twitter.
Trump also questioned the Koch brothers election funding, noting that very few political candidates that he knew were getting the money.
On Tuesday, Trump criticized the “globalist Koch brothers” who had become a “total joke” as a result of their criticisms.
“They want to protect their companies outside the U.S. from being taxed, I’m for America First & the American Worker – a puppet for no one,” Trump wrote. “Two nice guys with bad ideas.”
Rush Limbaugh Celebrates 30 Years of Syndication
The first time I heard Rush on the radio, it was the first time I heard my own beliefs echoed on any media outlet. Rush is a force of nature; a national treasure; comfort in the storm. Simply put, I love Rush Limbaugh. Thank you Rush, 30 more years please. - Mike Miles
Limbaugh ranks second — after Sean Hannity — on TALKERS magazine’s 2018 Heavy Hundred list. He previously held the top spot in 2016 for ten consecutive years.
A 2017 Forbes report estimated Limbaugh’s weekly listenership at 14 million.
A very cool call from @realDonaldTrump to my brother @limbaugh on his amazing 30th anniversary.
— David Limbaugh (@DavidLimbaugh) August 1, 2018
Rush Limbaugh is an American treasure. His work ethic is unmatched. His intellect is unconventionally brilliant and his own. His talent – is ON LOAN FROM GOD. He is a great man – a wonderful boss – a great friend. LOVE YOU RUSH. Happy 30 YEARS at #1.
— Bo Snerdley (@BoSnerdley) August 1, 2018
Rush Limbaugh 30 YEARS. The most amazing, talented, remarkable incredible broadcaster in America and the world. And w wonderfully kind, awesome brilliant, generous, loving human being. 30 YEARS at #1. Well deserved. Congratulations Rush!
— Bo Snerdley (@BoSnerdley) August 1, 2018
HAPPY ANNIVERSARY, RUSH LIMBAUGH! 30 YEARS ON AIR TODAY! @rushlimbaugh #Rush
— Ann Coulter (@AnnCoulter) August 1, 2018
Andrew Breitbart recalled Limbaugh’s impact on his own political evolution in...
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