How dare you challenge me! I spent eleven years just planning my next scam.
Posted on 03/21/2025 8:50:22 AM PDT by delta7
President Donald Trump is urging the Fed to cut interest rates to offset the inflation that will be caused by tariffs. “The Fed would be MUCH better off CUTTING RATES as U.S.Tariffs start to transition (ease!) their way into the economy,” Trump wrote. “Do the right thing. April 2nd is Liberation Day in America!!!” Reducing interest rates will NOT offset inflation caused by tariffs because the two variables are not directly related.
Tariffs increase costs due to supply, while interest rates influence demand. When tariffs are imposed, the cost of imported goods rise, increasing prices for consumers and businesses. This cannot be offset by lowering interest rates, as rate cuts stimulate borrowing and investment rather than addressing price increases caused by trade barriers. In fact, lower interest rates can exacerbate the problem by weakening the currency, making imports even more expensive, further fueling inflation.
Historically, tariffs have led to stagflation—rising prices combined with economic stagnation—rather than the demand-driven inflation central banks typically target. The Smoot-Hawley Tariff of the 1930s, for example, severely disrupted global trade and worsened the Great Depression. Similarly, Trump’s trade war with China during his first term did not lead to any economic boom but instead forced businesses to adjust supply chains, raising costs for consumers.
Lowering interest rates in this environment offsets capital flows, decreasing confidence and weakening the purchasing power of the currency. The result is a cycle in which consumers face higher costs while the central bank loses the little control it has to manage inflation. The idea that the Fed could actually control inflation is based on outdated Keynesian economics concepts that were drafted when the US had a balanced budget. Now, most demand comes from the government itself, the largest borrower and creator of debt.
This is why Jerome Powell spoke out against Joe Biden for creating the largest spending package in US history and multiplying the public sector. The government will never pay off its debts, and the interest payments on that debt alone have been astronomical.
Relying on rate cuts to counter tariff inflation ignores the root cause of the issue. The real solution lies in reducing trade barriers and not relying on tariffs to increase the demand for domestically made goods.
https://www.armstrongeconomics.com/blog/
Inflation is not caused by tarriffs.
“Armstrong’s daily updates, he reports much our MSM will not.”
You posted that you have been following his updates for over two decades. Eleven of those years Armstrong was in jail. How did he have access to Socrates while in jail?
One of the problems with free trade in the real world is that other nations are not playing by the same economic rules and we keep taking it on the chin.
How dare you challenge me! I spent eleven years just planning my next scam.
The problem with “managing” the economy is there are darn few direct relationships. That’s where this amount of X causes y amount of something else. One example is a government collects a million dollars in taxes, but it wants a million two hundred thousand. The simple answer is to raise taxes. More often than not the overall revenue from taxes will drop. That happens for a lot of complex reasons, but the point is, it isn’t that simple.
What government should do, or, rather not do, is try to manage the economy. Set a policy and see what happens. If you don’t get the desired result, end the policy. Trump, for I think valid reasons, is using politics to adjust the behavior of countries. WE, THE PEOPLE understand and will give him some leeway to get it right.
Hey, look. Sure, Martin Armstrong spent a decade in jail for (among other things) running a Ponzi scheme to cheat people. And sure, he’s a known liar and a swindler.
But all that is no reason to ignore what he has to say.
Oh, wait. Leopards don’t change their spots. So maybe it is a reason to ignore what he has to say.
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President Trump is rapidly untangling the tentacles of Obama’s “share the wealth” exfiltration policy, and he will achieve success on a scale most economic analysts cannot fathom. Traditional financial media, including those who follow the influences of Wall Street are constrained by their need to retain pretenses. However, President Trump and his economic team are very clear-eyed and focused.
We are already seeing major drops in core energy prices including gasoline. These decreases will have downstream impacts on all consumer goods, and we will notice a significant drop in food prices in two steps.
The first will be moderate and the result of harvest one cost decreases. The second price drop will be even greater and will come as a result in major farm costs for the second harvest sequence. By Thanksgiving 2025, lowered energy prices in combination with ‘food prepared at home’ price drops will be the leading cause of a major decline in inflation.
In the background of this domestic outcome, the April 2nd tariffs will start to ripple through durable goods. Initially, there will be waves and fluctuations as some durable goods prices increase and other durable good prices decrease. The more the components of the product are domestically manufactured, the more the price of the end produce will drop in price.
As a result, the aggregate downward pressure (higher domestic content) will exceed the upward pressure (higher import content component goods) and overall prices for durable goods will decline. This deflationary pressure point will increase over time as the end of the Marshal Plan starts to return dollars to the United States.
All of the above factors focus on total cost of goods (TCG) outcomes. However, the MAGAnomic program doesn’t stop with ‘goods’. The next phase of MAGAnomics, the geopolitical angle will run in the background; lesser noticed, more difficult to track, and yet subject to geopolitical gaslighting from the financial media.
President Trump is currently reversing the dollar-value damage (currency damage) that Barack Obama and Joe Biden intentionally created.
President Trump has expressed an intention to align a new geopolitical strategic relationship with Russia, after the issues with the Ukraine-Russia conflict are resolved.
The primary focus of this strategic U.S-Russia relationship will be economic; however, Trump is positioned to leverage Putin’s assistance toward regional issues around the globe, specifically the middle east and Asia-Pacific.
The first sequential step will be to reverse the sanctions against Russia. By reversing the sanction regime, the BRICS+ alignment is weakened, and the dollar-based global trade currency is strengthened. This approach has two direct benefits.
The first benefit is direct. The national security influence of a higher value dollar affords President Trump greater leverage over regional conflict zone resolution. The second benefit is less direct. A higher dollar value eliminates almost all import trade tariff outcomes. We purchase foreign goods with higher value dollars; therefore, it takes less dollars to purchase the import.
Now, keep in mind the EU has a sanctions regime against Russia that is separate to the U.S. sanctions regime. Obama’s crew used Joe Biden to pressure the EU to fall in line with ‘first of its kind’ severe sanctions regime created by Biden’s White House, Treasury and State Dept. The EU/WEF’s ‘Build Back Better’ energy program was leveraged by Obama/Biden to create pressure points for compliance.
To benefit the USA strategy, President Trump will now want the EU to remove their side of the sanction’s regime against Russia. This will be tricky, because simultaneous to this need President Trump will be removing the Marshal Plan of one-way tariffs that underpins the larger EU economic benefit with the United States.
In fact, the April 2nd outline of tariffs against the EU could be (I believe will be) used to create initial leverage to nudge the EU to remove the Russian sanctions regime.
Remember, in the aggregate the sanction removal helping the Russian economy is secondary to the motive of the sanction removal assisting Trump will a higher dollar value and even more pressure on Beijing for geopolitical national security interests. This is essentially Donald Trump avoiding a U.S-China military conflict by using economics in place of military assets.
The second leverage point for EU compliance will be NATO. President Trump will likely leverage U.S. continued NATO involvement as a tool to get the EU to remove Russian sanctions and simultaneously diffuse issues with higher tariffs on EU goods.
[SIDEBAR – French President Emmanuel Macron can see this coming, hence he is trying to organize a NATO system that is less reliant on the USA. Macron is not pushing for a stronger military in the EU to defend itself, Macron is pushing for a stronger military in the EU so President Trump cannot leverage U.S. military support against French compliance with tariffs. Macron’s push for a continued Ukraine conflict is part of this equation.]
This is the rather complicated background to understand this very important interview with Special Envoy Ambassador Steve Witkoff. Within the interview Witkoff outlines some very interesting points about the relationship between President Trump and President Vladimir Putin.
THIS IS MUST WATCH:
Most of the world will entirely miss the importance of what Ambassador Steve Witkoff is outlining in this interview. However, if you understand the bigger goals and objectives, and if you always remember President Trump is focused on the economic angle, then you can clearly see the outline of the long-term strategy.
Last point.
Russia was never an enemy to the United States.
Free Trade works when all Countries are fair. Which has not been the case.
Why do people keep saying President Biden did this, President Biden did that?
The Uniparty stole the 2020 election to install their puppet figureheads, Dementia Joe & Laughing Hyena kamaLa.
The former Joe Biden, as corrupt as he and his family were and still are, used to be a U.S. Senator who advocated strengthening the U.S. border, putting a larger patrol along the border, etc. Then, magically, when he was installed by his handlers as the puppet figurehead pResident in 2021, he was suddenly Joe "Wide-Open Borders" Biden. That's because Biden by then was significantly suffering from some form of dementia and he just mindlessly went along with whatever his George Soros-funded Democrat Cabal handlers told him to say and do.
Look at Biden's 2020 (two-vs.-one) debates vs. President Trump: When Trump tried to debate Biden on a specific topic, Biden mindlessly stared at the camera, saying something like "you're in voting" and then kept yelling "Vote! Vote! Vote!" at the camera. WTF was that? Biden was always a goofy U.S. Senator but he never would have done something that totally idiotic. His handlers advised him to ignore President Trump as much as possible and keep yelling into the camera.
There was still a trace of the former Sen. Biden during that debate when he frantically called President Trump a "clown" and told President Trump to "just shut up, man!" But other than those outbursts, Dementia Candidate Joe mindlessly regurgitated the Dumb Democrat mantras his handlers told him to repeat ad nauseum.
Whenever Trump questioned Biden about various Dumb Democrat mantras Biden kept repeating, Dementia Joe looked down at his podium and sighed, "ughhhhh." It was so obvious. He clearly was not the same Biden from his Senate or even VP days, and his Democrat handlers knew it. Even so, the Democrat Cabal handlers proceeded to push and install Puppet Joe into the White House.
That applies to the other sides, more than it does on the US side. The US is enacting reciprocal tariffs to counter existing tariffs on US goods.
In Mexico's case, the US is also enacting tariffs to counter the China-Mexico "wink-wink" deal that allows China to avoid the US tariffs on their exports.
They should not lower interest rates. It backfires in huge ways. I am so tired of politicians getting interest rates lowered just because it makes them look good for 4 years.
“They should not lower interest rates. “
The market determines interest rates.
Indeed, I stopped reading right there.
Who knew Armstrong is a free traitor? TM deliberately not used. Free traitor is not TM -able.
Who knew Armstrong is a free traitor? TM deliberately not used. Free traitor is not TM -able.
Inflation is always and everywhere a monetary phenomenon, in the sense that it is and can be produced only by a more rapid increase in the quantity of money than in output.
Milton Friedman
“he reports much our MSM will not.”
His repeated appeal to suckers. Like this previous. It so obvious a fake story but the leng ndary Armstrong got suckered in.
https://freerepublic.com/focus/news/4304515/posts?page=40#40
Imperial Russia had , at one time, the largest gold holdings in the world. It all disappeared ( amounts unknown) but this recent article from 2023 states much was recently recovered. Unreported by western MSM.
What?
Anti-tariff economists and financial commentators keep making ridiculous claims.
None of them acknowledge that USA consumer demand goes down when the price of a specific product increases.
None of them acknowledge that USA consumers immediately begin searching for substitutes, or stop buying certain products, when the price increases.
None of them acknowledge that foreign producers may absorb some or all of the tariff to maintain demand for their product.
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