Posted on 04/06/2025 6:23:13 AM PDT by lovingliberty1965
I cannot take credit for the following but I saw this comment posted on another forum and thought I would post it here since it describes the best in the smallest amount of space why the tariffs work and how they work:
"Trump is trying to crash the stock market at least 20%, causing a flight into treasuries, this will cause the fed to slash interest rates so he can refinance the debt to near 0% and cause a deflationary spiral which will lower the cost of everything.
He also intends to use tariffs as an incentive for companies to build in the US to avoid having to pay the tarriffs. The Tariffs and the resulting global trade war will also force American Farmers to sell more of their goods in the US (due to retaliatory trade measures by other countries) which will directly lower the price of groceries in the US by making it unprofitable for farmers to export, more supply in the states while demand remains static or near static for the same daily staples such as bacon, eggs, beef, pork, rice, beans, etc. the prices will drop - This is also why eggs are cheaper now than they were under Joe Biden.
More than 94% of all stock is owned by just 8% of the US population - Trump is literally taking money from the rich and giving it to the poor.
This is why Trump is playing a game of Hokey Pokey with Tariffs. One day he has 25% Tariffs on Mexico and the next he doesn't. This is to cause extreme volatility in the markets and a desperate need and demand to flee towards treasury bonds which are much more stable but offer much lower potential return."
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Thanks for this
The Globalist/Media/Leftwing establishment is outraged. This is why.
It is necessary for the Republican Party to increase the percentage of voters who pay into the system rather than merely take from the system.
The Republican Party has become politically paralyzed. Even when it has power it fears using it.
The recent stock market losses are the estimation of the rich of how much the working class of the USA stand to gain if Trump is able to carry out his plan.
Yup, the working class stand to gain trillions!
OTOH, there is Project Sandman, where we may be headed. I believe we are, as it paves the way for replacement of the FED/IRS with PM-backed currency.
Also lower wages and production, which is going to lead to a difficult time, especially for younger generations. But I do believe this reset is necessary and America will come out of this stronger.
Any president can crash the economy in the short run, but it takes a real visionary to hopelessly depress the economic outlook for decades.
Yes, the bankrupt companies will hire workers in droves.
Works for me! MAGA! *BUMP*
There WILL be pain...but only if you ask nicely. ;)
IMHO, America NEEDS a kick in the Economic Butt. It has needed one for DECADES.
There is also a post by Mark Levin that should be read by those who are trying their darndest to create hysteria over the tariffs that they fail to understand how they are beneficial, and needed after who ever was making decisions for Biden in his scam administration.
I’ve been thinking the same thing. I was in on $VIX (market instability) from a few weeks ago, because it’s clear the ultimate problem lies in the huge amount of interest on the debt. That’s also why he’s telling Powell to get his ass out there and cut rates.
Much of the stock market it grossly over valued, and deserves a crash. But, an overall 20% “crash” is immaterial to those that did not invest in the crappola stocks.
It is called a free market and, like life, live with it.
to think that a giant reconfiguration of world economic systems to a level playing field for trade would not mean a similar realignment in nature of stocks needing to be owned is not realistic. different companies now benefit. d’uh. fortunately the fallout from decline in stocks is move into bonds, bringing yields down - good for housing, credit card debt and Treasury debt interest charges (there is a humongous amount of it to be rolled this year, thank you, idiot Yellen), honestly post-Novemberelection people should have been realigning their asset allocations if they truly believed DJT is a man of his word.
See no reason wlto be upset if the left-wing globalist media is truly outraged!
i would add to my earlier post - another benefit is lowering of oil prices without our even drilling one new well. January oil futures - $80. Friday oil futures $61. this dsruption has moved energy prices lower, interest rates lower - WIN.
My overly-simplistic two cents from another thread:
I believe President Trump is re-leveling the playing field in a world-spanning poker tournament while holding the winning hand.
They need America more than America needs them, so they’ll bitch and moan through a few hands before conceding. This beats the Democrat Party way of letting the tiny playground bullies take our lunch money because that was easier than standing up to them.
We’re going to lose a little here and a bit more there along the way, but in the end America will rake in the winnings. We must have the stomach and determination to get there.
But I agree with you. Just refining it a little. 🙂👍
A deflationary spiral is horrible. It becomes a race to unload assets, crashing prices. People put off purchases anticipating lower prices tomorrow.
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