News. The gap between what Americans and the rest of the world pay for sugar has reached its widest level in at least a decade, breathing new life into the battle over import quotas that prop up the price of the sweet stuff in the U.S.
For years, U.S. prices have been artificially inflated by import restrictions designed to protect American farmers. That has kept the price well above the global market. (WSJ)
My point. This is what happens to prices when the government intervenes to protect specific industries. Economic engineering such as special tariffs to help favourite industries "competing" produces price distortions.
And who is going to pay the final bill? You guessed it. The US consumer (including the workers the tariffs are supposed to protect). Why?
Because the markets always win.
George Dagnino, PhD
Editor, The Peter Dag Portfolio. Since 1977
Ranked Top Market Timer in 2009 and 2010 by Timer Digest
To find out more about my in depth views of the markets and my strategy just visit our website https://www.peterdag.com/ where you can subscribe to The Peter Dag Portfolio. You can also call me at 1-800-833-2782 to discuss your specific money management needs.
I will be happy to speak to your investment group on how the business cycle impacts investment strategies and the choice of asset classes.
Disclaimer. No material here constitutes "investment advice" nor is it a recommendation to buy or sell any financial instrument. Actions you undertake as a consequence of any analysis, opinion or advertisement on this site are your sole responsibility.
No comments:
Post a Comment