RaboBank: “Some In The Market Are Starting To Get The Real Reason Behind The Trade War”

By Michael Every of Rabobank

London, 1940. Churchill’s War Room, deep beneath Whitehall. A group of officers and a hunched old man with a cigar are huddled around a map on table.

MONTGOMERY: “The outlook is grim, Prime Minister. We are short of ammunition.”

DOWDING: “And planes, Prime Minister.”

MOUNTBATTEN: “And ships, Prime Minister. And ships.”

CHURCHILL: “So, gentlemen, what is to be done?”

Grim silence falls on the darkened smoke-filled room. A bespectacled Treasury clerk enters.

CLERK: “We have an ideal solution, Prime Minister.”

CHURCHILL: “Speak, man, speak!”

CLERK: “We have a very attractive offer to supply us with cheap ammunition, planes, and ships.”

MONTGOMERY: “Who from exactly? Not the Yanks?”

CLERK (checking clipboard): “No, Sir. From Die-keine-Deutsche-munitionsfirma-ehrlich GmbH

CHURCHILL: “That sounds suspiciously German.”

CLERK: “They do list one Badolf Hissler as the main shareholder, but it says here he’s Australian.”

DOWDING: “Austr-al-ian?”

CLERK: “Yes, Sir. And their prices are very good. 75% cheaper than we can do it ourselves.”

MOUNTBATTEN: “I say! That does sound good! A real bargain, what!”

CLERK: “Indeed. Treasury says we must outsource procurement: it’s simple economic logic.”

CHURCHILL: “Field Marshall, please take this man out and have him shot, there’s a good chap.”


The ‘play of the day’ above comes against a backdrop of markets trying to accentuate the positive in the latest US-China trade war deterioration. Indeed, Moody’s has declared a trade deal will still be done and a Bloomberg survey of US economists shows around two thirds think a deal will be signed by year-end, a fifth by

Keep reading this article on Zero Hedge - Blog.

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