Tariff Song That Never Ends: On, Off, On, Repeat

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4d ago 27:17

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Chinese Admitted To Bessent, They Knew Biden Was Weak "Strong Dollar" Policy Being Reversed By Trump Administration Dollar Recycling Shifting To Gold Recycling "Gold has been interesting. For the month of April, 70 tons, roughly 7.4 billion in gold, was purchased via ETFs in China. That's double the previous month's record. I think tariff uncertainty added to buying, but what's interesting is the global share of ETF buying in China moved higher, from 3% of the global total to 6%. In the month of April, Chinese demand in that four-week period accounted for half of global ETF inflows." —David McAlvany * * * Kevin: Welcome to the McAlvany Weekly Commentary. I'm Kevin Orrick, along with David McAlvany. David, it's so funny how we talked last week about how different news outlets will say things differently, but behind closed doors, Treasury Secretary Scott Bessent just revealed that the Chinese told him behind closed doors that they ignored their trade commitments under Biden because they knew he was weak. Huh. I guess nobody else did, but yeah. They just admitted that. David: All of my kids have, at one time or another, sat by a light switch on the wall, entertaining themselves by flipping it on, and then off, and then on again until I tell them to stop. Right? Kevin: You know why they do that, don't you? They want your attention. David: Maybe. I mean, tariffs are feeling a little like that now. Kevin: Oh. Yeah. David: Is it the fascination with pulsating waves of energy that fill the room with light, or is it the momentary darkness where ambiguity and the unknown stir a variety of concerns? Kevin: So I've got a question for you, though, because Trump has cut his teeth, basically, building casinos and working in an arena where you probably have to put up with some mob bosses. Okay? Does what works in business, does that work in international relations? David: That was a question that Joseph Nye asked in a Financial Times article just a few weeks ago, and I was thinking about his passing this last week. He served under two presidential administrations, strongly promoted US-Japanese relations, best known for his ideas of soft power influence and complex interdependence. It is worth asking the question. What works in business may or may not work in international relations. So his first big idea, soft power, getting what you want through attraction rather than coercion or payment, that's a little like social capital, street credibility, at least a few of my kids would say rizz. That's the word of the moment, short for charisma. The allure of the American dream, better opportunities, they draw immigrants from around the world. Back in the 1990s, Levi's jeans in Moscow were the American stuff people had to have. I mean, I know a guy that flew plane loads full of denim from here to there. Kevin, you know him, too. You used to fly with him. Kevin: That's right. Yeah. He was moving stuff into Russia. David: Yeah. Communism had a grip on the mind of Russians, but America was gaining a grip on the Russian heart. Maybe it was American materialism to be more precise, but we had this sort of street credibility. We had this— Even if you think about the American dream, we have an immigration problem. China doesn't have an immigration problem. Russia doesn't have an immigration problem. Who wants to be in those places? Kevin: Who wants to move in? But I think about that. So Nye talks about soft power, and it reminds me of Otto von Bismarck back in the 1870s. He was a brilliant guy who realized that if you could put together a lot of different agreements, complex agreements, you could have peace and prosperity for a long time. The problem is, Otto von Bismarck died, and it led to World War I. Okay? When things start falling apart, that's where that international relations thing, if you're using soft power, it better work for everyone, not just the guy who put it together. David: Well,

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