Kudlow statement is a total contradiction in terms. I never had much respect for his his understanding of economics. If the economy were so strong then why is there a flight to safety? Strong economies have upper sloping yield curves.

The Canadian bond market is taking its cue from the US bond market which is also inverted. At the same time oil and other commodity prices are weak. Manufacturing has been declining for nearly six months straight. And Canada now feels a chill from China and its impact upon worldwide supply chains. The Canadian stock market hit an all-time high earlier in the week so we can't say there's any flight to quality

Simply bond investors have a completely different outlook on the future compared to stock market investors.

Gary, I agree. The issue is that there is no American telecom that is at the forefront of the 5G technology. The US dropped the ball awhile ago and assumed that 5G was a longer way off in the future. Meanwhile, Chinese and European developers marched ahead.( I am biased. I have a Huawai phone and find it better and much cheaper than iPhones. Do I think the Chinese are spying on me??)

Gary you are correct.Israel's tech sector is deeply involved with China,especially in AI.

As for Flat Broke the US has a long history of not acting in its best intersts. By starting a trade war which the US does not know how to end is a perfect example of not acting and your own best interest.

Not so sure about Trump power. One of the largest BMW factories in the world is in Spartsburg in he Carolinias has over 10k workers. One of the reasons that US cannot follow through with tariff threats especially in Trump country.

As they say "it's complicated"

Thanks. I just don't get Poloz. He staring at recession and just closes his eyes. Given the monetary lags we will not feel the effects of any cut in rates until mid 2021.

Gary an excellent overview of the biggest non tariff barrier to trade that is used by every country

You are right China is not going to give up the commanding heights derived from subsidies

And US farmers cannot exist without farm aid. Both conditions are indemnic in their respective nations.

Huh? You say Treasuries " might not be liquid, if liquidity is part of your goal". Treasuries are most liquid asset on earth. The investor may not like the yield he gets upon a sudden liquidation, but that is no different than in the case of equities.

Arthur

Business investment and govt spending are slowing and together that accounts for 35% of GDP. Those segments are dragging down GDP and more importantly are reducing long term potential as the capital stock wears down and overall productivity falls---which is the most serious issue.

One way to stop this lying is to tax the corporations on the inflated numbers.!

This puts the Chinese growth issue in perspective. Much of the negativity surrounding China's fortunes involves a wish, on the part of many Americans, to prove that the China is suffering from the trade wars. As you rightly point out, US growth has been the major victim in the trade conflict, not China.

Also China is in the midst of altering the ratio of domestic consumption to investment, so some slowdown is expected. The betting odds favour China engineering a soft landing to a lower growth path, but hardly one to characterize as a major reversal of fortunes.

The US landing may be not be as smooth, especially with such erratic policy making that results in knee-jerk reactions that interfere with longer term investment decisions.