Tariffs, Sanctions, and the Cost of Living....
With Trump teetering on the verge of flexing his mighty muscle to impose new and greater tariffs on all the so called countries that have "taken advantage" of the US in his words it begs the question...
"I wonder who in the country is going to thank him when he destroys the present standard of living?"
It's the eqivilant to someone investing in high risk where it should be known but rarely is that 95% lose. No one seems to remember that rule when you do lose. Everyone looks for someone to blame. They don't remember (if they ever knew) that you only gamble with 10% of your net worth. Nothing more.
Why?
It isn't safe.
Of course no one will thank him for making their lives better in the long run because the long run involves making sacrifice and enduring pain in order to get there.
How many are going to put up with incredible short term discomfort in order to do what is right for the country. The answer of course is "dam few".
Oh sure everyone says it in word and they might even agree its a good thing to do until they feel the pain. Then they begin to think twice about whether this is the right strategy or not. They begin to look for someone to blame and point a finger at. You know, "they made me do it" kind of thing.
They think making America great again is simple. Just turn a few dials and push a few levers and "bam", there we go. All fixed.
If only life were that simple.
In the real world life is more complex. It doesn't respond to our whims like we want it to. Very similar to how the markets work themselves. They rarely if ever give you what you expect.
These new tariffs will only make a bad situation worse. They will cause inflationary effects in many different areas as I am sure that most of you are feeling already. After all someone has to pay for the increased costs right. You can be sure that the corporations are not going to swallow the painful pill. No sir. That is being passed on to you and me whether we like it or not. You see they have a good scape goat now. When things head south as they most surely will they can say well we told Donald what was going to happen but he didn't listen. In short they can blame someone else.
Of course that is not going to help you with your day to day living expenses that most of you cannot keep up with already. No dear reader the pain is only going to get worse. I suspect a lot worse.
Will the Fed be able to do much here?
No there won't. There is no way to paper over the deflationary forces that have now been set in motion. There will be no way to calm the herd in time. In the bigger picture it won't just be the herd here at home but rather it will be global.
Sanctions that are being proposed for Russia and for Iran will only make a bad situation worse. It never effects the goons at the top but it does hammer the little fellow. This is how "hate" develops. When bad goes to worse, is when wars erupt. That is when simply blaming is not enough. Someone has to pay. Someone has to die. On the present course this is a likely scenario whether a year or five years from now.
The cost of living will keep climbing as inflationary forces get worse. People will become more and more confused as to why they keep running out of money. Their purchasing power will get less and less. Then the government will look to take them to war. This has always been the way.
Trumps polices will not do a thing to help the common man. Sadly it will fleece the rich too. At the end of it all I wonder who will be there to thank the good president?
The answer is probably, "no one".
Cheers!
"I wonder who in the country is going to thank him when he destroys the present standard of living?"
It's the eqivilant to someone investing in high risk where it should be known but rarely is that 95% lose. No one seems to remember that rule when you do lose. Everyone looks for someone to blame. They don't remember (if they ever knew) that you only gamble with 10% of your net worth. Nothing more.
Why?
It isn't safe.
Of course no one will thank him for making their lives better in the long run because the long run involves making sacrifice and enduring pain in order to get there.
How many are going to put up with incredible short term discomfort in order to do what is right for the country. The answer of course is "dam few".
Oh sure everyone says it in word and they might even agree its a good thing to do until they feel the pain. Then they begin to think twice about whether this is the right strategy or not. They begin to look for someone to blame and point a finger at. You know, "they made me do it" kind of thing.
They think making America great again is simple. Just turn a few dials and push a few levers and "bam", there we go. All fixed.
If only life were that simple.
In the real world life is more complex. It doesn't respond to our whims like we want it to. Very similar to how the markets work themselves. They rarely if ever give you what you expect.
These new tariffs will only make a bad situation worse. They will cause inflationary effects in many different areas as I am sure that most of you are feeling already. After all someone has to pay for the increased costs right. You can be sure that the corporations are not going to swallow the painful pill. No sir. That is being passed on to you and me whether we like it or not. You see they have a good scape goat now. When things head south as they most surely will they can say well we told Donald what was going to happen but he didn't listen. In short they can blame someone else.
Of course that is not going to help you with your day to day living expenses that most of you cannot keep up with already. No dear reader the pain is only going to get worse. I suspect a lot worse.
Will the Fed be able to do much here?
No there won't. There is no way to paper over the deflationary forces that have now been set in motion. There will be no way to calm the herd in time. In the bigger picture it won't just be the herd here at home but rather it will be global.
Sanctions that are being proposed for Russia and for Iran will only make a bad situation worse. It never effects the goons at the top but it does hammer the little fellow. This is how "hate" develops. When bad goes to worse, is when wars erupt. That is when simply blaming is not enough. Someone has to pay. Someone has to die. On the present course this is a likely scenario whether a year or five years from now.
The cost of living will keep climbing as inflationary forces get worse. People will become more and more confused as to why they keep running out of money. Their purchasing power will get less and less. Then the government will look to take them to war. This has always been the way.
Trumps polices will not do a thing to help the common man. Sadly it will fleece the rich too. At the end of it all I wonder who will be there to thank the good president?
The answer is probably, "no one".
Cheers!
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