These Are Interesting Times – A Hegemon Struggle Not a Tradewar-Week 2

Hegemonic Drama:

When Trump was announcing his cabinet appointments, one of the most remarkable was Wilber Ross becoming the Secretary of Commerce. I remember wondering why Mr. Ross, one of the most intelligent and wealthy global investors of our time, would agree to serve in that back water capacity. Can you name any of the last ten USA Secretaries of Commerce?

However, Mr. Ross being appointed as Secretary of Commerce will be judged by historians as a brilliant decision. In that position, Mr. Ross is the equivalent of the Field General in the economic war of the Hegemonic struggle currently underway.

The media is demonstrating their consistent ineptness by labeling this amazing drama as a simple trade war. It is accurate that the debate is about “free trade” versus “free and fair trade”. But blinded by their hatred of Trump, the media is apparently unable to understand the true significance.

Here is what is actually happening. The USA, which has been the Hegemon for almost 100 years, is attempting to confirm its hegemonic position by demanding that “free trade” also be “fair trade”. Having been the Hegemon since WWI, the USA has always been in favor of free trade, as am I. But “free trade” requires all countries to play by the same rules. China has not done so.

It is critical to remember that land is the source of all wealth. Every product that we humans consume originates with land. Not all tracts of land are equal in quality and portfolio management requires every investor to hold some cash for liquidity. But historically, long-term the best investment is land.