In the old Nazi playbook of the 1930s it was said that “tell a lie often enough and it becomes the truth”.
I have seen reports and have heard people saying how the USA is collecting BILLIONS from other countries via tariffs. The media is portraying this as a big WIN for us! Most have been duped by this reporting.
In my opinion this is a bald-faced lie.
Last week our president announced that without tariffs we would have a 1929 type crash.
While the tariffs can certainly hurt the countries that the tariffs are placed upon it is not in the way being presented by our “leaders.”
Of course, the increased tariffs raise costs for importers, wholesalers, and retailers and therefore, make it likely that FAR fewer orders are going to be made and could cause a substantial slowdown in economic activity in the tariffed area. This is not much different from those “in charge” picking winners and losers in the economy.
If we go back to the Great Depression one of the contributing factors were the tariffs of the time. This is economic warfare and could slow down economies globally if continued. I believe that this is a sign of desperation for the USA and is nothing but an additional tax on we the citizens to keep the government afloat as a trillion dollars is being added to our national debt every one hundred days. This is what is admitted to- what are we NOT seeing “off the books”?
I will attempt to prove that all of the tariffed countries have so far paid NOTHING and will not pay anything in the future.
A friend of mine had a business where he imported goods from China. The example that he gave me is if I make an order from China and it is $100,000.00, I know that I can pay that and what the cost of my goods are. If there is a 50% tariff and I don’t have the extra $50,000.00 I can’t accept the shipment. If it is 100%, I am paying as much for the tariff as I did for the merchandise. NOTICE WHO PAYS! WHAT DID CHINA PAY? Not ONE PENNY. The Chinese have had a loss of economic activity if the goods are not accepted and if they are WE PAY A HIGHER PRICE. If the USA has collected these tariffs, they have collected them from our businesses that import foreign goods and then they pass that cost on to us.
Oh, by the way the sales taxes would be higher because of the higher cost for goods also.
In the case of a 30% tariff, I have been told by another friend that the importer is paying 15% and the merchant is paying an additional 15%. Guess what? The price of the goods rises 15% to keep the business going or the business takes a massive hit and may have to lay off employees and buy fewer goods.
Still sound good?
I am thrilled that the current administration is doing a victory lap about lower inflation. Obviously, they are unaware – or want to keep US unaware- that there is a lag from when tariffs are charged, and the products make their way into the economy. Look out going forward if this continues.
While many argue that tariffs are deflationary- and may be in the short run the disruption of supply chains and lack of supply- along with money “printing” globally will ultimately lead to fewer goods, fewer choices, and higher prices as too much cash is chasing fewer goods.
This is just one more illusion to mask the decay in our economy and kick the can further down the road. Just like not counting over 100 MILLION unemployed people (1) when reporting the unemployment rate. By massaging inflation numbers to make it look Far better than the real-world reality. By conjuring up trillions to pretend that we are still a vibrant growing economy. By issuing trillions in debt and reporting it as growth. By saying there will be no CBDC only to have a stablecoin that will allow the same sort of surveillance and control.
This feels an awful lot like 1929 to me. The difference? In 1929 we had a moral society. We had a fairly simple economy based upon hard assets, thrift, and hard work. Today, we have lost our moral compass which has led to far more crime and violence. (2) It has led to people not being able to see that “printing” money is nothing more than a scheme to steal your purchasing power (and LABOR) via inflation. It also allows asset prices to rise for the top 2%.
I will make a few more comparisons to 1929 thanks to reporting by Gregory Mannarino:
· Global Credit Imbalances. There are too many to mention at this time but the intervention by central banks is masking the lurking danger of too much debt. Similar to 1929 but FAR more dangerous and FAR larger today.
· Slowing demand in Europe for US goods. Same today but now there is a global slowing demand for US goods, currency, and debt. Again- far more dangerous today. (3)
· Speculative bubbles in US stocks. Today’s bubble is of historic proportions that has no rival in current economic history.
· Widening wealth inequality. Again, history appears to rhyme here as homelessness is exploding higher, loan delinquencies are surging, bankruptcies rising while the 1-2%ers are laughing all the way to the bank.
It is very possible that if you do some research about 1929 and the next few years that followed you may get a better picture of where we are and where we may be going.
Don’t listen to the headlines. I believe they are meant to deceive. Trust your own eyes and read between the lines.
Trump’s warning last week may happen with or without tariffs- they will just make it that much more severe.
Be Prepared!
1- USdebtclock.org
2- FBI Crime statistics
3- US Trade Statistics
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