CHARGE !!

(CHARGE !!)

The anthem to any Black Friday. Today, millions of shoppers will venture outside and brave the traffic, both outside and inside a mall or store or whatever and play their own role in the yearly ritual of Christmas shopping. One will find a lot of so-called "big ticket" such as a new car-truck. Lots of clothes, whether or not they fit. Also, toys and electronics. For the latter, a "Made in China"


That has been a feature of most mass merchandising for years. Wal Mart, Target, look down their aisles and product after product have that label. However, now that Trump is retuning to Office and tariffs being a central theme to his economic policy, It is either the threat of the application or the application itself of the levy so involved. Could that be inflationary ?


China enjoys this position because it has cheap, if not slave, labor. Apple builds its iPhone in China. Nike builds its sneakers in China. The fact is that the Peoples' Republic can reduce costs for American companies that are engaged in manufacturing. While all that is taking place, Beijing also is habitual in its IT theft and technology transfer. President might be an advocate of free trade, at least in public but tariffs can be used to level things. Right now the priority is the cessation of fentanyl precursors. Which get sent to Mexico to be refined. 


Any levy on China is designed to change behavior. Trump is threatening similar action, 25% on Mexico if it not only curbs illegal immigration and to restrain the cartels. In conjunction with Trump finishing the wall and adopt a more aggressive posture towards Sinaloa and Co. And if Mexico City wants to intervene, then that could have the effect that would trigger Trump's attention.


All that aside, Black Friday is a time of preparation because what is done that day will explain how Christmas might go. At least to a point.

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