Merchant of Crash

Not for the first time, but yet another event to re-kindle fair reader's interest in Mercantilism. And, since this is the era of The Manchurian President, we know that he's stepped into a pile of shit. And the rest of us get the slime and stink.

China's gone after oil. As well they might. They ain't stupid. They know the balance of Mercantilism is largely in their favor. The USofA exports raw resources to China, and imports finished goods from China. Archetypal wrong end of the deal. That being a bad deal was understood by The Real Adam Smith lo those many centuries ago. The Right Wingnuts still think that the 19th resource gorging USofA economy can be re-kindled if only we slay our enemies. Good luck with that.

Oil futures dived Friday morning after China announced it would impose retaliatory tariffs on $75 billion worth of imports from the U.S., including a levy on crude, amplifying concerns about the global economy and demand prospects for crude.

West Texas Intermediate crude for October delivery CLV19, -1.88% on the New York Mercantile Exchange — the U.S. benchmark — fell $1.64, or 3%, to trade at $53.71 a barrel, suffering the worst of the selloff after reports said China's tariff list includes a 5% levy on imports of U.S. oil.