Thursday, 7 November 2024

Trump Wins Bigly. What Next? Tariffs Not Taxes. Recession?

Baltic Dry Index. 1427 +22            Brent Crude  75.40

Spot Gold 2660                  US 2 Year Yield 4.27 +0.08

The demand for money is regulated entirely by its value, and its value by its quantity.

David Ricardo.

While the US stock casinos cashed in on Trump World Tariffs, in the Rest of the World casinos rising dismay and fear.

US import tariffs will hurt many countries exports to the USA, with most if not all, imposing retaliatory tariffs on US exports and companies. A repeat of the 1930s global slump now looms for 2025-2028.

Almost as bad, US import tariffs will generate increased inflation in the US economy since there’ no free lunch. Most, if not all, of the tariff cost will get passed on to the US consumer, one way or another. Look away from that flattening US yield curve now.

Up first, the casinos reaction in Asia.  

Asia-Pacific markets mixed in choppy trading after Trump victory

Updated Thu, Nov 7 2024 11:15 PM EST

Asia-Pacific markets were mixed Thursday after former President Donald Trump won the White House, defeating Vice President Kamala Harris in the 2024 presidential election.

NBC News projects that Trump will win at least 291 Electoral College votes, including key swing states of Pennsylvania, North Carolina and Georgia.

Japan’s Nikkei 225 reversed gains to lose 0.25%, but the broad based Topix was up 0.95%.

The yen weakened to a intraday high of 154.7 against the dollar on Wednesday, its weakest level since July 30, but recovered marginally on Tuesday to 154.41.

South Korea’s Kospi was 0.19% lower, with the small cap Kosdaq also down 1.45%.

Hong Kong’s Hang Seng index initially fell, but reversed course to climb 0.9%, while mainland China’s CSI 300 also went into positive territory with a 0.5% gain.

Hong Kong and mainland Chinese stocks mainly fell Wednesday as Trump’s victory looked increasingly certain.

In China, state media reported that the National People’s Congress standing committee, the country’s parliament, had reviewed the plan to raise local government debt for another day, after initially discussing the plan on Monday.

Local authorities in China have historically been responsible for much of public services spending, but have struggled financially as revenue from land sales to developers has dropped.

Australia’s S&P/ASX 200 traded 0.41% lower.

Overnight in the U.S., all three major benchmarks hit record highs following Trump’s victory.

The Dow Jones Industrial Average surged 1,508.05 points, or 3.57%, to a record close of 43,729.93. The last time the index saw a gain of more than 1,000 points in a single day was in November 2022.

The S&P 500 also hit an all-time high, popping 2.53% to 5,929.04. The Nasdaq Composite climbed 2.95% to a record 18,983.47.

Asia markets live: Nikkei record high, Trump election

Stock futures are little changed after major post-election rally as focus shifts to Fed: Live updates

Updated Thu, Nov 7 2024 7:32 PM EST

Stock futures are near flat Wednesday night after a huge market rally following Donald Trump’s decisive victory in the presidential election. Traders are awaiting the Federal Reserve interest rate decision Thursday afternoon.

Futures tied to the Dow Jones Industrial Average slipped 12 points, or less than 0.1%. S&P 500 futures and Nasdaq 100 futures both traded marginally below flat.

Trump’s triumph in the race for the White House spurred a surge in stocks that sent the blue-chip Dow soaring by more than 1,500 points. The Dow, S&P 500 and Nasdaq Composite all notched new all-time highs in the session, while the small cap-focused Russell 2000 jumped more than 5%.

Bitcoin, the U.S. dollar and bank stocks all jumped as part of Wednesday’s post-election advance. On the other hand, several international funds and solar stocks struggled as investors expected the President-elect’s policies to hurt these names.

“The results are in and the financial markets can breathe a little easier without concern over a prolonged election process,” said Scott Helfstein, head of investment strategy at Global X ETFs. “Investors should still be cautious about over- and underreaction to geopolitical news. These events can typically cause large swings in asset prices, but fundamentals will win out over time.”

Market participants on Thursday will closely monitor the Federal Reserve’s interest rate decision and Chair Jerome Powell’s subsequent press conference. Fed funds futures are currently pricing in a 100% likelihood that the central bank lowers the borrowing cost at this gathering, according to CME Group’s Fed Watch tool.

That would mark a second straight cut after the Fed’s decrease in September, which was its first since 2020. Before the afternoon announcement, traders will follow economic data on jobless claims and wholesale inventories.

Quarterly earnings are on deck for Moderna and Warner Bros. Discovery before the bell Thursday. Results for BlockPinterest and Rivian are due in the afternoon.

Stock market today: Live updates

Trump win and threat of more tariffs raises expectations for more China stimulus

Published Wed, Nov 6 2024 9:45 PM EST

BEIJING — Donald Trump’s 2024 presidential win has raised the bar for China’s fiscal stimulus plans, expected Friday.

On the campaign trial, Trump threatened to impose additional tariffs of 60% or more on Chinese goods sold to the U.S. Increased duties of at least 10% under Trump’s first term as president did not dent America’s position as China’s largest trading partner.

But new tariffs — potentially on a larger scale — would come at a pivotal time for China. The country is relying more on exports for growth as it battles with a real estate slump and tepid consumer spending.

If Trump raises tariffs to 60%, that could reduce China’s exports by $200 billion, causing a 1 percentage point drag on GDP, Zhu Baoliang, a former chief economist at China’s economic planning agency, said at a Citigroup conference.

Since late September, Chinese authorities have ramped up efforts to support slowing economic growth. The standing committee of the National People’s Congress — the country’s parliament — is expected to approve additional fiscal stimulus at its meeting this week, which wraps up Friday.

“In response to potential ‘Trump shocks,’ the Chinese government is likely to introduce greater stimulus measures,” said Yue Su, principal economist at the Economist Intelligence Unit. “The overlap of the NPC meeting with the U.S. election outcome suggests the government is prepared to take swift action.”

She expects a stimulus package of more than 10 trillion yuan ($1.39 billion), with about 6 trillion yuan going towards local government debt swaps and bank recapitalization. More than 4 trillion yuan will likely go towards local government special bonds for supporting real estate, Su said. She did not specify over what time period.

Stock market divergence

Mainland China and Hong Kong stocks fell Wednesday as it became clear that Trump would win the election. U.S. stocks then soared with the three major indexes hitting record highs. In Thursday morning trading, Chinese stocks tried to hold mild gains.

That divergence in stock performance indicates China’s stimulus “will be slightly bigger than the baseline scenario,” said Liqian Ren, who leads WisdomTree’s quantitative investment capabilities. She estimates Beijing will add about 2 trillion yuan to 3 trillion yuan a year in support.

Ren doesn’t expect significantly larger support due to uncertainties around how Trump might act. She pointed out that tariffs hurt both countries, but restrictions on tech and investment have a greater impact on China.

More

Trump win and threat of more tariffs raises expectations for more China stimulus

In other news. The EUSSR in shock and horror and panic.

Europe praises Trump’s victory amid wider fears of an impending economic nightmare

Published Wed, Nov 6 2024 7:39 AM EST Updated Wed, Nov 6 2024 8:41 AM EST

European officials have been quick to congratulate Donald Trump after he defeated his Democratic rival Kamala Harris to return to the White House, despite a stark realization that renewed economic warfare could be just around the corner.

European diplomats and their respective leaders have been preparing for the eventuality of a Trump victory for more than 12 months, placing a growing focus on policies that could protect the European economy from potential trade disputes.

Some European officials woke up to election results on Wednesday “not wanting to believe” them, several sources told CNBC.

“I am seeing it, [and] not wanting to believe,” said one EU official, who did not want to be named due to the sensitive nature of the transatlantic relationship. “But I am not as shocked as last time.”

Many European leaders did not enjoy Trump’s style of confrontational leadership during his first presidency, and there were several moments of tension with the former White House leader. As a result, many in Brussels celebrated the victory of Joe Biden in 2020, hoping for a better engagement.

A second EU source, who also did not want to be named because of the sensitivity of the relationship, said: “It is not great, again.”

But the source echoed the feelings of the previous official, acknowledging, “At least, I am not as surprised [as in 2016].”

EU leaders to meet Thursday

European Commission President Ursula von der Leyen, French President Emmanuel Macron, Spanish Prime Minister Pedro Sanchez, Italian Prime Minister Giorgia Meloni and Hungarian Prime Minister Viktor Orban were among the first EU leaders to offer their congratulations to Trump on Wednesday morning.

Concerns regarding Trump are not wholly shared across the European continent. Hungary’s Prime Minister Viktor Orban, who has in the past spoken of his admiration for Trump, has previously reportedly said that he would open a bottle of champagne if Trump were elected.

EU leaders are scheduled to meet for a regular meeting Thursday and Friday in the Hungarian capital of Budapest, which will provide them with an opportunity to discuss their future plans for the transatlantic relationship.

Trump has threatened to impose an additional 10% in tariffs on European nations, while also saying that the European Union would have to “pay a big price” for not buying enough American goods.

Trade with the United States is critical for European nations. The EU and the U.S. have the largest bilateral trade and investment relationship in the world, which reached an all-time high of 1.2 trillion euros ($1.29 trillion) in 2021, according to data from the European Commission, the executive arm of the EU.

Any additional tariffs could further pressure the already moribund economic growth levels across the EU.

More

EU reaction to US election 2024

Germany’s ruling coalition collapses as Chancellor Scholz fires finance minister

Published Wed, Nov 6 2024 3:23 PM EST

Chancellor Olaf Scholz announced Wednesday he had dismissed Finance Minister Christian Lindner, bringing an end to Germany’s ruling coalition after months of political wrangling and raising the possibility of snap elections in March.

The three-year-old union between Scholz’s Social Democratic Party (SPD), the Greens and Lindner’s Free Democratic Party (FDP) had been on shaky ground for some time, with differing budget and economic policy positions causing tensions and clashes.

Speaking at a press conference late Wednesday, Scholz launched a tirade against Lindner, saying he was not concerned about serving for the common good and he was dismissed to prevent harm to the country. Scholz said he would call for a vote of no confidence on Jan. 15 in parliament, raising the possibility of elections earlier than scheduled in March.

“Anyone who joins a government must act responsibly and reliably, they cannot run for cover when things get difficult,” Scholz said at the press conference, according to a Reuters translation. “They must be willing to make compromises in the interests of all citizens ... But that is precisely not Christian Lindner’s focus right now, he is focused on his own clientele.”

Both the FDP and the Greens confirmed late Wednesday that Lindner’s departure would mean an end to Berlin’s fractious coalition, although the latter said it would remain in office.

Lindner paper

The situation had been coming to a head in recent weeks, with speculation about a potential collapse ramping up earlier in the week. That came after a series of moves from the three parties, including a paper by Lindner of the FDP that outlined his vision to revive the German economy — crucially, however, by arguing against fundamental positions of the SPD and Green party.

The parties had also been struggling to agree upon a 2025 budget, which still had a funding gap of several billions of euros and was still being negotiated. The deadline for the budget was set for later this month.

Debt brake

Lindner said at his own press conference Wednesday that his party had made suggestions for an economic shift, which had been rejected by Scholz. He called Scholz’s counter-suggestions unambitious.

“The Free Democrats are still ready to carry responsibility for this country and we will fight to also do this in a different government next year,” Lindner told reports, according to a CNBC translation.

Lindner said that Scholz had demanded a pause to Germany’s debt brake, which he could not accept. Enacted in 2009, Germany’s debt brake limits how much debt the government can take on, and dictates the maximum size of the federal government’s structural budget deficit. The rules say it can be no bigger than 0.35 percent of Germany’s annual GDP.

German Chancellor Olaf Scholz fires Finance Minister Christian Lindner

BMW profits plunge 80pc as Chinese demand crashes

6 November 2024

BMW has warned of “extraordinary challenges” as it became the latest carmaker to post a large drop in China sales.

The German automotive giant on Wednesday revealed profits from July to September had plunged 84pc compared to a year earlier, to €476m (£397m).

It followed a 13pc drop in vehicle deliveries, including a 30pc slump in the Chinese market, which it relies on for one third of all sales.

In another blow, the company has also been hit by problems with a braking system that forced it to recall 1.5m cars.

The results come after similarly bleak reports from other top manufacturers such as Volkswagen and Mercedes-Benz, as Chinese consumers spurn Western brands for cheaper, high-tech, domestically made alternatives.

Oliver Zipse, BMW’s chief executive, said: “This past quarter, we faced a series of extraordinary challenges.”

Like other German carmakers, BMW has come to heavily rely on the Chinese market. However, it has faced turbulence in China as the wide adoption of electric cars highlights a gulf between local and domestic brands.

Chinese manufacturers such as BYD have brought out a wide range of fully electric vehicles, including many that sell for under £10,000, with companies also competing against each other to offer various high-tech features.

This has piled pressure on European and Japanese carmakers, which are widely viewed as being behind in electric car development. They face additional challenges at home, where Chinese manufacturers are also stepping up sales of low-cost cars.

BMW’s revenues fell by nearly 16pc overall to €32.4bn in the quarter, with the company posting a drop in sales in every region.

More

BMW profits plunge 80pc as Chinese demand crashes

China October exports record highest jump in 19 months, imports decline more than expected

Published Wed, Nov 6 2024 10:34 PM EST

China’s exports in October rose at their fastest pace in 19 months, sharply beating analysts’ estimates, according to data from the country’s customs agency on Thursday.

Exports rose by 12.7% in October from a year ago in U.S. dollar terms, their highest jump since March 2023, according to LSEG data. That compares with 2.4% growth in September, 8.7% in August and 7% in July.

Analysts had pegged exports growth at 5.2% year on year in October, according to a Reuters poll.

Imports, however, fell by a more-than-expected 2.3% in October. That compares with a modest growth of 0.3% in September and 0.5% in August. Analysts had forecast a decline of 1.5% in October exports, according to a Reuters poll.

“The better-than-expected export figures can be attributed to delayed shipments in October due to improved weather conditions, ongoing price discounts to capture market share, and the traditional peak season leading up to Christmas,” Bruce Pang, chief economist of Greater China at JLL told CNBC.

The world’s second-largest economy has been grappling with weakening domestic consumption and a protracted property crisis, with exports being a rare bright spot.

Chinese officials has unveiled a flurry of stimulus measures since late September, including interest rate cuts, lower cash reserve requirements at banks and loosened property purchase rules, in a bid to revive the ailing economy.

In October, China’s factory activity expanded for the first time since April, with the official purchasing managers’ index coming in at 50.1, beating September’s 49.8 and analysts’ estimate of 49.9.

China’s parliament standing committee meeting is underway, with expectations that it will announce details about further fiscal stimulus when it concludes on Friday.

China October exports record highest jump in 19 months, imports decline

Global Inflation/Stagflation/Recession Watch.

Given our Magic Money Tree central banksters and our spendthrift politicians, inflation now needs an entire section of its own.

Trump vow on new trade war sends shockwaves through supply chain, importers scramble to move up orders

Published Wed, Nov 6 2024 11:57 AM EST

Retailers and manufacturing companies have been increasingly calling logistics partners, both in the days leading up to presidential election and on Election Night, about “front loading” shipments ahead of any changes in tariff policy to be pursued by President-elect Donald Trump, who campaigned on an aggressive expansion of existing U.S. tariffs on cross-border trade.

Trump has vowed across-the-board tariffs of 10% to 20% on all imports arriving into the United States and a 60%-100% tariff on Chinese imports.

“This is 2018 all over again,” said Paul Brashier, vice president of global supply chain for ITS Logistics, referring to the year during which Trump first imposed sweeping tariffs in his first term. “The calls expand beyond shippers who have Chinese imports. The global tariff threat is fueling calls for frontloading from all around the globe,” he said.

Brashier expects Trump’s election to result in increased container demand and vessel bookings, which will then fuel freight rates, trucking and warehouse rates. Trucking stocks, such as J.B. Hunt Transport ServicesKnight-SwiftSchneider National, and XPO, were in rally mode on Wednesday, as were freight rails including Norfolk Southern and CSX.

Among many major market moves on Wednesday as traders and investors digested the Republican wins, the U.S. dollar surged against key international currencies tied to trade on Wednesday, such as the euro and Mexican peso

Ocean shipping stocks hit on market fears of trade decline

The knee-jerk reaction in shares of ocean carriers, was negative, with a big slump led by Maersk, even though consumer demand remains strong in the U.S. and frontloading of imports would raise ocean rates, at least in the short-term. Shipping analysts described the reaction in Maersk and its peers as excessive. But they added it is based on the belief is tariffs increase the costs of trade, in turn lowering demand and volumes. They noted that did not occur in 2018 and 2019, with volumes growing an average of 12% during those two years. “It speaks to the uncertainty of the situation, rather than the imminent doom,” wrote analyst Ben Slupecki of Morningstar in an email.

Lars Jensen, CEO of Vespucci Maritime, said in the short-term there will be a surge in import demand for containerized goods as U.S. companies stock up ahead of any new tariffs. “Especially related to goods which are not time sensitive, said Jensen. “This will create upward pressure on freight rates in the coming months.”

According to spot ocean freight rate data tracked by ocean and air freight intelligence platform, Xeneta, the frontloading of freight during the Trump trade war on Chinese imports in 2018 fueled a rise in ocean container shipping freight rates by more than 70%.

Peter Sand, chief shipping analyst at Xeneta, tells CNBC that shippers will be fearing more of the same with this latest tariff threat. “Shipping is a global industry feeding on international trade, so another Trump presidency is a step in the wrong direction,” said Sand. “The knee-jerk reaction from U.S. shippers will be to frontload imports before Trump is able to impose his new tariffs.”

More

Trump vow on new trade war sends shockwaves through supply chain

Stellantis to lay off 1,100 workers at Ohio Jeep plant

November 6, 2024

DETROIT (Reuters) -Stellantis said on Wednesday it is laying off about 1,100 employees at a Jeep Gladiator plant in Toledo, Ohio, as it works to improve efficiency and reduce inventory across its North American operations.

The automaker recently shook up its senior management in an attempt to turn around its slipping sales in the region, and has also cut its salaried and hourly workforce over the past year.

"These are difficult actions to take, but they are necessary to enable the company to regain its competitive edge and eventually return production to prior levels," Stellantis said in a statement.

CEO Carlos Tavares' decision to slash manufacturing workers, such as those in Toledo, has angered the United Auto Workers union, which represents these employees.

UAW President Shawn Fain has threatened a nationwide walkout at Stellantis factories just a year after workers struck for six weeks at the automaker and its Detroit competitors.

Stellantis to lay off 1,100 workers at Ohio Jeep plant

Huge delivery firm cuts 300 jobs ahead of Christmas after big sales drop

6 November 2024

Just Eat is making 300 staff redundant across its global business ahead of Christmas this year.

According to the Daily Mail, the job cuts are equivalent to 2% of its workforce. The cuts were confirmed today after results last month revealed lower-than-expected trading from the US. Job losses were seen in 11 of its regions worldwide across multiple areas including service, products, technology, human resources, sales, marketing and logistics.

The food delivery service said the worker reduction was a "tough" decision but a 'necessary step' to ensure it could "fuel sustainable growth and enhance operational efficiencies." The move to cut staff came after the delivery firm reviewed its cost base and operations, which is reportedly part of its growth strategy. It is understood that those affected by the redundancies will receive "enhanced severance packages" and access to career transition services and wellbeing resources.

A Just Eat spokesperson told MailOnline: "Following an extensive business review, we have made the difficult decision to reduce the size of our global workforce. While decisions like these are tough, it is a necessary step we've needed to take to ensure we have the right organisational structure in place to fuel sustainable growth and enhance operational efficiencies.

"Altogether, this will impact approximately 300 employees across multiple teams and markets globally, accounting for around 2% of the Just Eat Takeaway.com workforce. We will provide full support to the impacted team members, and we are incredibly grateful for the contributions they have made to the business."

In its recent results published last month, Just Eat saw a 3% drop in its global sales in the three months to September. Business in the UK and Ireland did rise by 6%, but the 12% drop in US sales dragged down the overall group result. Just Eat cut 1,870 in the UK in March 2023 after sales dropped. This included 170 operational roles. At the same time, the firm also moved from employing its own couriers to contractors instead, which resulted in the other 1,700 losses.

Huge delivery firm cuts 300 jobs ahead of Christmas after big sales drop

Covid-19 Corner

This section will continue until it becomes unneeded.

An Idaho health department isn’t allowed to give Covid-19 vaccines anymore. Experts say it’s a first

Associated Press  Sun 3 November 2024 at 8:45 pm GMT

A regional public health department in Idaho is no longer providing Covid-19 vaccines to residents in six counties after a narrow decision by its board.

Southwest District Health appears to be the first in the nation to be restricted from giving Covid-19 vaccines. Vaccinations are an essential function of a public health department.

While policymakers in Texas banned health departments from promoting Covid vaccines and Florida’s surgeon general bucked medical consensus to recommend against the vaccine, governmental bodies across the country haven’t blocked the vaccines outright.

“I’m not aware of anything else like this,” said Adriane Casalotti, chief of government and public affairs for the National Association of County and City Health Officials. She said health departments have stopped offering the vaccine because of cost or low demand, but not based on “a judgment of the medical product itself.”

The six-county district along the Idaho-Oregon border includes three counties in the Boise metropolitan area. Demand for Covid vaccines in the health district has declined — with 1,601 given in 2021 to 64 so far in 2024. The same is true for other vaccines: Idaho has the highest childhood vaccination exemption rate in the nation, and last year, the Southwest District Health Department rushed to contain a rare measles outbreak that sickened 10.

On October 22, the health department’s board voted 4-3 in favor of the ban — despite Southwest’s medical director testifying to the vaccine’s necessity.

“Our request of the board is that we would be able to carry and offer those (vaccines), recognizing that we always have these discussions of risks and benefits,” Dr. Perry Jansen said at the meeting. “This is not a blind, everybody-gets-a-shot approach. This is a thoughtful approach.”

Opposite Jansen’s plea were more than 290 public comments, many of which called for an end to vaccine mandates or taxpayer funding of the vaccines, neither of which are happening in the district. At the meeting, many people who spoke are nationally known for making the rounds to testify against Covid vaccines, including Dr. Peter McCullough, a Texas cardiologist who sells “contagion emergency kits” that include ivermectin and hydroxychloroquine — drugs that have not been approved to treat Covid-19 and can have dangerous side effects.

More

An Idaho health department isn’t allowed to give Covid-19 vaccines anymore. Experts say it’s a first

Technology Update.

With events happening fast in the development of solar power and graphene, among other things, I’ve added this section. Updates as they get reported.

Solid-state batteries may yet catch up — but silicon anodes are winning the race to power EVs

5 November 2024

Silicon anodes appear to be leading the way in the race to commercialize next-generation battery technologies for electric vehicles.

The buzz around silicon-based anodes, which promise improved power and faster charging capabilities for EVs, has been growing in recent months — just as the hype around solid-state batteries seems to have fizzled.

It comes as increasing EV sales continue to drive up global battery demand, prompting auto giants to team up with major cell manufacturers on the road to full electrification.

While some OEMs (original equipment manufacturers) have inked deals with solid-state battery developers, carmakers such as Mercedes, Porsche and GM have all bet big on silicon anodes to deliver transformative change in the science behind EVs.

A recent report from consultancy IDTechEx described the promise of advanced silicon anode materials as "immense" for improving critical areas of battery performance, noting that this potential hadn't gone unnoticed by carmakers and key players in the battery industry.

It warned, however, that challenges such as cycle life, shelf life and — perhaps most importantly — cost, need to be addressed for widespread adoption.

Venkat Srinivasan, director of the Collaborative Center for Energy Storage Science at the U.S. government's Argonne National Laboratory in Chicago, said silicon anodes appear to have the edge over solid-state batteries.

"If there's a horse race, silicon does seem to be ahead at least at this moment, but we haven't commercialized either one of them," Srinivasan told CNBC via videoconference.

Srinivasan said five years ago silicon-anode batteries had a calendar life of roughly one year, but recent data appears to show a dramatic improvement in the durability of these materials, with some tests now projecting a three to four-year calendar life.

Unlike the cycle life of a battery, which counts the number of times it can be charged and discharged, the calendar life measures degradation over time. Typically, the calendar life of a battery refers to the period in which it can function at over 80% of its initial capacity, regardless of its usage.

Srinivasan said solid-state batteries, long billed as the "holy grail" of sustainable driving, still have a long way to go before they can match the recent progress made by silicon anodes.

"That transition still has to be made in solid-state with their metal batteries and that's why I think you're hearing from people that, hey, it looks like that promise hasn't panned out," Srinivasan said.

"That doesn't mean we won't get there. It may happen in a few years. It just means that it feels like today silicon is in a different part of the technology readiness level."

More

Solid-state batteries may yet catch up — but silicon anodes are winning the race to power EVs

Next, the world global debt clock. Nations debts to GDP compared. 

World Debt Clocks (usdebtclock.org)

Neither a state nor a bank ever have had unrestricted power of issuing paper money without abusing that power.

David Ricardo.


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