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Bill Webb's avatar

Trump's tariffs are completely based on the assumption that a trade deficit is bad. It's not. A trade deficit just means that the US sends more dollars to countries (many of them poor) than it gets back. Those countries can't afford US products and services, but they do need to buy things like oil, which they often buy from OPEC. OPEC accumulates US dollars and turns around and invests them in US stocks and Treasuries. Both of those help the US, but they might now be deciding it's time to sell both. That might help temporarily reduce the interest rate but selling stocks hurts Americans. All because Trump thinks trade deficits are terrible, which they are not. This might also cause the world to decide that having the dollar as the reserve currency is no longer a good idea. That would be a disaster for the US as then it's budget deficit will matter and interest rates will really go up causing a downward spiral. Trump is meddling in things he just doesn't understand and he can cause the US Empire to fall and become Russia - a gas station run by oligarchs and a dictator with nukes. It would take years but it can happen.

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Nate Czarnecki's avatar

"And all this will create the sort of economic chaos and upheaval that destroys market efficiency, vaporizing trillions in value to the benefit of literally nobody."

Oh but there IS one who benefits - Putin... Comrade Trump strikes again..

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Old Chemist 11's avatar

"But new year, new Trump admin, baby! Gone are those RINO cucks who used to talk Trump out of the big, bold policy swings he really wanted to take."

For Bulwark readers it's so obvious it's not worth mentioning, but nearly everyone else needs to be reminded constantly that those "RINO cucks" are not just gone, but REPLACED. By traitors waiting in line for that perfect useful idiot to let them destroy the country. No vetting needed after 1/6/21, because they were the only ones applying for the job.

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Eva Seifert's avatar

Breaking: "Top Court Ousts South Korean President, Upholding His Impeachment Yoon Suk Yeol, who was suspended after declaring martial law in December, will be permanently removed, the Constitutional Court ruled. A new leader will be elected."

Amazing how other countries, new democracies, know how to deal with tyrants.

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Ananda Barton's avatar

I'm just reading a biography of George Reid*, fourth Prime Minister of Australia (1904-05). At the time tariffs were the big issue in Australian politics, the two major parties in the first Commonwealth Parliament were the Free Traders and the Protectionists, with Labor (i.e. socialists) as a third party. As you may imagine tariffs, with the White Australia Policy, were a major preoccupation of those early Australian politicians.

Last year I would have considered protectionism dead and buried. Now tariffs are back at the centre of Australian political discussion. Thank you Mr. Trump for taking us back 121 years. I'm half expecting to see the White Australia Policy and the socialisation of industry rising from their graves as well.

*https://www.nma.gov.au/explore/features/prime-ministers/george-reid

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quercus206's avatar

This Lutnick guy seems like real idiot.

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Suz Stiles's avatar

did Lutnick always talk in hyperbole like Trump? what the heck is beautiful beef?

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JayJCoollay's avatar

Many companies here in Americas heartland are laying off people. To think just a few months ago they were still hiring like gangbusters. https://workforce.iowa.gov/employers/resources/warn/notices

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Jennie Ehrmann's avatar

How do we fight back? Is it safe to email the White House to ask when we will be liberated from Trump and liberated from his retrograde policies? I hesitate to leave my name there.

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Timothy McCauley's avatar

When will Wharton rescind his degree? He clearly failed Econ 101.

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dean apostol's avatar

What if this is just an easy way to tank the market, buy the dip, and then Trump magically revokes a bunch of tariffs and the market recovers? Would anyone put this past him?

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RAB's avatar

There is only one lens through which to view Comrade Kraznov. He is a walking, talking, no-doubt-about-it, psychopath. That is the beginning, the middle, and the end of his existence. Any analysis that ignores this is worthless. Over 77 million people ignored the signs or reveled in them.

Four years of his unfettered insanity cannot possibility end well.

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Lydia Plaskon's avatar

I am so glad Trump picked this moment to tank the economy with his tariffs. There will be that many more people motivated to show up at the 1,100 rallies, visibility events and meetings scheduled in all 50 states for Saturday's nationwide "Hands Off!" anti-Trump protests. Let's make a giant party of it and do Drinks for Democracy/Food for Freedom after the protests - we can bring back/rebrand Freedom Fries :)

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Kentuckistan's avatar

Happy National Burrito Day America!...lets not lose sight of the important stuff

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garth katner's avatar

Time for "Libation Day".

(All day, every day ...)

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dcicero's avatar

Thus it begins ... from CNN:

Stellantis has “paused production” at some of its Canadian and Mexican auto assembly plants due to the newly announced tariffs — and as a result, some US workers will also be temporarily laid off.

Among those to be laid off are 900 US hourly employees who make powertrains and stampings that supply the affected Canadian and Mexican plants, Stellantis said Thursday. The temporary layoffs are due to reduced production prompted by the tariffs.

The affected US employees work at five different Midwest plants: the Warren Stamping and Sterling Stamping plants in Michigan, as well as the Indiana Transmission Plant, Kokomo Transmission Plant and Kokomo Casting Plant, all in Kokomo, Indiana.

So... How are those Michiganders and Hoosiers feeling today about their votes? All good? All positive? Feeling that their sacrifice will deliver America to greatness and wealth (again). Do they feel great? Do they feel wealthy?

I want to feel sympathy for them, but I just can't. They knew this was coming. They were TOLD it was coming. They wanted this. They voted for this. And now they've got it, good and hard. Why in the world should I feel bad for them?

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dean apostol's avatar

Yeah all good. They have faith in Trump that in the long run....one year.....5 years....make that 10 years....they will get their jobs back, but in alabama and at barely above minimum wage, if there even is a minimum wage by then.

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