By Lambert Strether of Corrente.
“Tariff-heavy U.S. trade policies are triggering financial strains in supply chains. Some companies have run up inventories of raw materials or finished goods to get around impending levies while others have offered customers longer payment terms to help them adjust to increasingly uncertain costs” [Wall Street Journal]. “the measures are soaking up corporate cash in a growing tug-of-war in supply chains, with more money tied up in product stockpiles or payments and less available for capital spending and operating costs. The Hackett Group Inc. estimates about $3.4 trillion in working capital was locked up across U.S. companies at the end of 2018, up from $2.7 trillion five years ago.” • “Working capital” was “locked up?” Like, not available for stock buybacks and executive compensation? (Can elites really believe that capital is not fungible, and that what they keep in the right pocket, for looting, can’t be moved to the left pocket, for investment?) I take the point, but the picture seems incomplete.
“But what is government itself, but the greatest of all reflections on human nature?” –James Madison, Federalist 51
“They had one weapon left and both knew it: treachery.” –Frank Herbert, Dune
“2020 Democratic Presidential Nomination” [RealClearPolitics] (average of five polls). As of June 11: Biden down 33.4% ( 33.6%) and Sanders steady 17% (17%) stabilize. Warren up 8.0% (7.8%), Buttigieg steady (7.0%), others Brownian motion. Of course, it’s absurd to track minute fluctuations at this point.
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Biden (D)(1): “Joe Biden: Republicans ‘Know Better,’ Will Change After