Putin Backs Protectionism

We have talked about entering an environment of rising nationalism for the last four years. The seeds have been very stealthy to date but they are taking root quite on a global scale. Quantitative easing, tax breaks for exporters, dumping exports on international markets, massive budget deficits, etc. Every major nation is in a race to the bottom of the barrel that will eventually set off reprisals. Russia has been slapping tariffs on imports for quite some time.

It is erroneously believed that tariffs caused the Great Depression. A myth perpetuated by special interest groups and historical revisionists.

What isn't a myth is that we are doing a very nice job of repeating history. Don't worry. You ain't seen nothin yet. The macro environment nearly guarantees there is no other outcome.