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."
8% of the population owns 94% of the stock?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.