All these Michael Fabricants are free marketeers right up until someone else starts doing better out of it.
1 Like
Trump has been talking about this plan for years and years, so it has been thought through. Just to pick one example, Jamie Dimon was clearly briefed on it because he expressed concerns about inflation and after doing so was left out of Trumpās advisory team after being floated for inclusion last summer.
The tariff plan is weaponization of the dollar to fight back against BRICS plans to de-dollarize. Itās a national security issue for Trump. Even Dimon conceded that if Trump values security higher than the economy it could be the right thing to do.
America is not set up for these tariff hikes though. They havenāt got the infrastructure in place. They still rely far too heavily on imported goods for their production of cars say and this goes across the board. American farmers are going to priced out of exporting. So it is going to hit Americas just as hard as the rest of the world. Canada could turn off the electricity to large parts of America tomorrow if they feel like it now too.
Just because heās talked about it for years does not mean itās feasible. The only talk now seems to be is if American will have a recession or a Great Recession, not about a strong dollar.
2 Likes
I have been hearing about protectionist plans to defend the value of the dollar and core USA industries for over a decade. I hold a load of Intel stock because I thought Biden was going to bung them enough cash to bounce back and reclaim market share. It didnāt happen, it probably will now. The world is most likely going to split into China allied and US allied factions with a few amoral floating voters in the mix like the Saudis.
Itās up to us to choose who we side with, free speech democratic US or authoritarian single party China. Iām a bit on the fence tbh.
Canāt we rejoin the EU
Why is America not set up for it? They absolutely are. America owns the dollar, the dollar is the contractual settlement currency for something like 60-70% of contracts worldwide. These contracts canāt be rewritten at a stroke, the US is going to be getting tariff fees by the bucketload.
Yeah but the EU is either with G7 or BRICS. Too small on our own. Or more likely G7 will get dumped and weāll have to join some new US alliance Trump conjurs up.
America will not be a free, democratic place by the end of Trumps term. He is already talking about an illegal 3rd term, took due process away from convicting citizens and sending them to prison camps to be lost in the system forever.
Has an unelected billionaire in Musk dismantling vital government departments so there is less in place to oppose Trump and using his billions to sway votes until he has full power to take over completely. Our best option is to rejoin the EU with Canada and Australia.
I donāt think Canada and Australia are going to join the EU. Australia has massively restrictive immigration policies for one thing. Let alone the fact that they are literally on the other side of the world.
If you can join the Eurovision Song Contest then you can join the EU I think.
3 Likes
Any excuse
It would have to be a new version of the EU. One of the main selling points of brexit was trade deals with Australia and America, well Canada isnāt that far away from America, haha.
America canāt be trust as an ally anymore with military intelligence sharing or for buying military weapons. That is clear now as they have shown they are willing to move closer to Russia and invade Europe (take Greenland by force).
The handbook has been ripped up and we (the rest of the world) can do what we want to as well to protect our own interests like Trump is doing.
Canada and Australia have already shown an interest in closer ties to Europe and moving away from the U.S.
Trump had already said he will not look out for Europe anymore, itās up to us to sort ourselves out from now on! So that is what we are going to have to do anyway. So we might as well get on with it. Which will only be better for us in the long term. America just isnāt a smart option anymore with him in-charge.
From Reddit:
"Know whatās even worse? Itās literally the method that Chat GPT suggests if you ask how to fix a trade deficit with tariffs. They asked Chat GPT how to fix the economy, and then just fucking did whatever it said. I donāt even know what to say. How can someone be this stupid?
Edit to add: On Chat GPT, the following prompt will immediately get you the method they used:
If I wanted to even the playing field with respect to the trade deficit with foreign nations using tariffs, how could I pick the tariff rates? Give me a specific calculation
I told it that itās trade policy was going to destroy America and it said the below. YOU COULDNT HAVE LED WITH THAT, CHATGPT?!?
Youāre right to call that outāslapping a 62.5% tariff across the board would be a shock to the system, likely triggering inflation, supply chain chaos, and trade wars. A more strategic approach would be needed to avoid economic self-sabotage.
Better Alternatives to Address the Trade Deficit:
- Targeted Tariffs ā Instead of a blanket tariff, focus on industries where unfair trade practices exist (e.g., subsidies, dumping).
- Reciprocal Tariffs ā Match the tariffs other nations impose on U.S. goods to level the field without overreaching.
- Incentivizing Domestic Production ā Tax credits, subsidies, or regulatory support for industries vulnerable to foreign competition.
- Bilateral Trade Agreements ā Renegotiate terms that disadvantage the U.S. while ensuring continued market access.
- Currency & Investment Policies ā Address currency manipulation and foreign ownership of U.S. industries to strengthen trade positions.
Would you like a more refined tariff strategy that balances economic growth with fair trade?"
Iām no expert, in fact I donāt care enough to know whatās really going on, but I presume the whole point of these tariffs are that old multi-bankrupt-a-casino Donnie Cheeto thinks that if he whacks a load of tariffs on foreign imports, say for instance BMW and Mercedes cars, that people are going to start buying Ford Mondeos instead and production will magically increase in non-existent factories all over the US like some sort of Bruce Springsteen mirror universe?
4 Likes
Re tarrifs, super interesting. I assumed there was no plan but actually there are 2 economists behind it all
Is it Patrick Minford and Patrick Minford?
1 Like
Skateboarding saved!
He does admit that the video is purely speculative, so he could be adding 2 + 2 and getting 5 or be completely right? I think the risks of that plan have the potential for more going wrong than right but Iām not expert.
It is more than just the trade war though, like Trump wanting a 3rd term, to stay in power for as long as possible basically, why he has Musk dismantling America government departments. He is setting up plans to rip up the whole system that America was built on.
The cosying up to Russia and his 5 million dollar instant citizen gold cards for rich foreigners too. Itās all very strange.
I donāt know? I guess weāll find out one way or the other soon enough.
