I’m sure you realize that Trump’s public facing comments provide little insight as to why his admin and puppeteers implement seemingly absurd policies…
The tariff situation works for a variety of nefarious influencers. Intentional economic seppuku is just one outcome they desire.
I have seen relatively little discussion on the fact that tariffs, in real effect, are simply a camouflaged path to the most regressive tax structure that the US has ever implemented. People actually “paying” the tariff tax (both in highest percentage of income AND in absolute amounts by class) will be the lowest in income. Hence the “conservatives” can continue to bark about being economic populists while shifting the bulk of taxation to those least able to afford it. The rich, conversely and by design, skate easily away from the effects of this insane policy.
Thanks for your efforts and insight. Best of luck.
It never ceases to amaze me how some people once they are in charge, they cannot see the forest for all the trees.
Economics 101 should include the analogy that different parts serve different functions, the simplest being that the economy functions are a lot like the suspension on a car or truck.
You have an inflated wheel, a spring and a shock absorber. The vehicle above is the society/political economy.
The inflated wheel is the active part of the economy, representing the business community, farmers, fishers, manufacturers, etc…. As loads are added and taken off, the tire pressure goes up and down. Pot holes cause pressure spikes, damage to the sidewalls, and the occasional blow out.
The laws, regulations and government policy act like the spring, connecting the wheel to the body. They allow the wheel to move more than what just a solid axle would, relying on just the tire pressure.
The shock absorbers are the central banks and government. When you hit a pot hole, you need to over-damp the system to prevent repeated oscillations. Without the damping, you can’t steer a vehicle bouncing all over the road.
Now if you replace the air pressure with money, you get a feel for what the different parts do. It’s a bumpy road, but a system that can roll over and through the bumps ensures a repeatable drive without crashing.
Now to get better mileage, you increase the tire pressure and the shock absorber pressure to get a firmer ride. But more of the road vibration is transmitted to the vehicle, and you risk a blow out that takes tire off the rim.
Soften the tire, and your ride is smoother, but you do not have the handling, your mileage goes down, and you risk a damaged wheel or sidewall cut at the next pot hole.
There is a limited range or sweet spot depending on the road conditions. That’s what Finance departments, Central Banks and working economists are supposed to maintain.
Now if my under-educated brain can figure this out, WTF is wrong with economists in the US? What is wrong with the billionaire brain trust advising Trump. To throw in tariffs is like putting curbs in the middle of the road.
The last time I hit a curb while driving, it dented the wheel rim, sliced almost all the way through the tire sidewall, and forced me to limp home from gas station to gas station refilling the tire until I was home. A 20mins drive took me 4 hours.
So this is what it looks like they are creating for the US economy. A rusted out beater on bald, under inflated tires, with no shocks and a smoke belching V8 that doesn’t fire on all cylinders.
And if Russia and China have their way, they won’t even put it up on blocks after stripping the wheels, battery and radio. And then the oligarchs will swing by and offer to take it off your hands. If you pay them to take it away that is.
Let’s hope it doesn’t come to that: if you think we have an immigrant oversupply problem now, what would we do with a few million Americans coming north for shelter, food and water?
Trump knows who pays tariffs. He's playing you and if you don't see that 🤷🏻♂️
The problem I see that a lot of people have at the moment is that they can't predict what's going to happen because they can't predict Trump. This upsets them because it stops them from making money. In order to make money you need to predict what's going to happen...
The lunacy of Trump’s argument re Canada and fentanyl is highlighted by asking, “On what planet will importers of illegal drugs declare the volume of drugs imported, their street value and the calculated tariff that the drug dealers will voluntarily remit to the government?”
Now if only Trump, mock-horrified by ‘this horrible drug’ had said “We will give the FBI the resources to go after the criminal boss drug importers, prosecute them and seize their assets as the proceeds of crime. Then we will deport them, even if they were born here. We will raise so much money, so many trillions, you just wouldn’t believe.
I call it The War on Drugs’. It’s never been done before I thought of it. It’s a beautiful thing.”
I have a question. What if destroying the economy is the point? I just read this article by Daniel Pinchbeck, and because I’ve read enough peter thiel et al by now, I believe Pinchbeck.
Yes, that is arguably the goal, bearing in mind that Thiel and others have method in their madness but that doesn’t change that they are deluded and ignorant maniacs whose ideas are destined to fail.
I’m sure you realize that Trump’s public facing comments provide little insight as to why his admin and puppeteers implement seemingly absurd policies…
The tariff situation works for a variety of nefarious influencers. Intentional economic seppuku is just one outcome they desire.
I have seen relatively little discussion on the fact that tariffs, in real effect, are simply a camouflaged path to the most regressive tax structure that the US has ever implemented. People actually “paying” the tariff tax (both in highest percentage of income AND in absolute amounts by class) will be the lowest in income. Hence the “conservatives” can continue to bark about being economic populists while shifting the bulk of taxation to those least able to afford it. The rich, conversely and by design, skate easily away from the effects of this insane policy.
Thanks for your efforts and insight. Best of luck.
It never ceases to amaze me how some people once they are in charge, they cannot see the forest for all the trees.
Economics 101 should include the analogy that different parts serve different functions, the simplest being that the economy functions are a lot like the suspension on a car or truck.
You have an inflated wheel, a spring and a shock absorber. The vehicle above is the society/political economy.
The inflated wheel is the active part of the economy, representing the business community, farmers, fishers, manufacturers, etc…. As loads are added and taken off, the tire pressure goes up and down. Pot holes cause pressure spikes, damage to the sidewalls, and the occasional blow out.
The laws, regulations and government policy act like the spring, connecting the wheel to the body. They allow the wheel to move more than what just a solid axle would, relying on just the tire pressure.
The shock absorbers are the central banks and government. When you hit a pot hole, you need to over-damp the system to prevent repeated oscillations. Without the damping, you can’t steer a vehicle bouncing all over the road.
Now if you replace the air pressure with money, you get a feel for what the different parts do. It’s a bumpy road, but a system that can roll over and through the bumps ensures a repeatable drive without crashing.
Now to get better mileage, you increase the tire pressure and the shock absorber pressure to get a firmer ride. But more of the road vibration is transmitted to the vehicle, and you risk a blow out that takes tire off the rim.
Soften the tire, and your ride is smoother, but you do not have the handling, your mileage goes down, and you risk a damaged wheel or sidewall cut at the next pot hole.
There is a limited range or sweet spot depending on the road conditions. That’s what Finance departments, Central Banks and working economists are supposed to maintain.
Now if my under-educated brain can figure this out, WTF is wrong with economists in the US? What is wrong with the billionaire brain trust advising Trump. To throw in tariffs is like putting curbs in the middle of the road.
The last time I hit a curb while driving, it dented the wheel rim, sliced almost all the way through the tire sidewall, and forced me to limp home from gas station to gas station refilling the tire until I was home. A 20mins drive took me 4 hours.
So this is what it looks like they are creating for the US economy. A rusted out beater on bald, under inflated tires, with no shocks and a smoke belching V8 that doesn’t fire on all cylinders.
And if Russia and China have their way, they won’t even put it up on blocks after stripping the wheels, battery and radio. And then the oligarchs will swing by and offer to take it off your hands. If you pay them to take it away that is.
Let’s hope it doesn’t come to that: if you think we have an immigrant oversupply problem now, what would we do with a few million Americans coming north for shelter, food and water?
Trump knows who pays tariffs. He's playing you and if you don't see that 🤷🏻♂️
The problem I see that a lot of people have at the moment is that they can't predict what's going to happen because they can't predict Trump. This upsets them because it stops them from making money. In order to make money you need to predict what's going to happen...
The lunacy of Trump’s argument re Canada and fentanyl is highlighted by asking, “On what planet will importers of illegal drugs declare the volume of drugs imported, their street value and the calculated tariff that the drug dealers will voluntarily remit to the government?”
Now if only Trump, mock-horrified by ‘this horrible drug’ had said “We will give the FBI the resources to go after the criminal boss drug importers, prosecute them and seize their assets as the proceeds of crime. Then we will deport them, even if they were born here. We will raise so much money, so many trillions, you just wouldn’t believe.
I call it The War on Drugs’. It’s never been done before I thought of it. It’s a beautiful thing.”
I have a question. What if destroying the economy is the point? I just read this article by Daniel Pinchbeck, and because I’ve read enough peter thiel et al by now, I believe Pinchbeck.
https://open.substack.com/pub/danielpinchbeck/p/paul-krugman-is-wrong?r=8c7x2&utm_medium=ios
By the way, thanks for reposting Cryptadamus … “Critical Trade Theory”! Almost fell off my chair laughing, it’s so good.
Yes, that is arguably the goal, bearing in mind that Thiel and others have method in their madness but that doesn’t change that they are deluded and ignorant maniacs whose ideas are destined to fail.