Post 334: Coffee, Airlines, and Lululemon: Signals of Strain

• Tariffs are sending coffee prices soaring.
  • A tax for American consumers with no benefit.
• Delta Airlines passenger revenue growth has been grinder lower for the last couple of years and is now flat:
  • And now falling in economy class for two straight quarters.
• Lululemon has not grown comparable store sales in the US for a year and a half.
  • And sales are accelerating downwards.
• The Canadian government has wisely scrapped next year’s quotas for new cars that must be low emission.
  • Future targets may also face the chopping block.
• Conagra’s share price comes back down to earth (yes that’s a joke: see below re: name origin).
  • And the share price is back to where it was in 1996.
  • And we take a look back at 1996.
• General Mills has grown volume in only one of the last sixteen quarters.
  • And it’s reflected in its share price.
• A Wall Street Journal survey shows that the American dream is slipping away.
  • And readers of Paulitical Economy will know why that is.
• In Financial Ructions:
  • The trade agreement between Canada, Mexico and the US (in alphabetical order: see below) is scheduled to be reviewed in less than a year.
    • A quick look at potential paths forward.
  • An article in the FT pushes for a 2% annual wealth tax on billionaires.
    • I have a better idea.
• In our book review of Taxes Have Consequences:
  • The authors walk us through the Great Depression step by step highlighting how various tax acts tanked the economy.
    • And we look at what caused the Roosevelt Depression of 1937.