The purpose of the tariffs is to increase the rate of inflation. Why would Trump do such a thing? Inflation is a tax. Inflation rides on top of the tariffs which are also taxes. There is a unique aspects of the inflation tax. First the overall population will not be aware they are being taxed. As prices rise federal debt will shrink in size relative to the economy as a whole. This is how government shifts the burden of the debt to the taxpayers so that the wealthy interests which own bonds and other U.S. securities will not take losses. No person in his right mind would start a trade war for the good of the United States citizens.
So with Trump’s minuscule tax cuts you have that reward in full. Your permanent reward for supporting his economic agenda will be to pay higher prices for everything you need and want for as far into the future as you can see.
The enormous debt of your government is only part of the dynamics of the economy which are putting you in danger. We have a fantastic economic recovery going on, right? A number is not just a number. We have to look at where these numbers come from. The entire recovery has been caused by an organized successful agenda to elevate stock prices independently of earnings.
Virtually all of this recovery is rooted in the artificially generated buying power of corporate insiders borrowing against their artificially elevated asset values or selling them off as they rise. So, what is the problem with that? Their might not be a problem at all if this wealth transferring agenda could be carried out for eternity. Rich and poor can run from reality, but reality is always chasing us and catches us in time. Manipulating the stock market has been the greatest cash cow for the rich that the country has ever known. Unfortunately this practice has caused the economy to rot from the bottom up.
At this point, there is a huge supply of stock hanging over the market. Insiders themselves are desperately selling their shares with both hands. If the stock market experiences even a routine sell off, it will cause the entire economy to implode. So there are ongoing efforts to keep it elevated. Central banks are buying outright. Corporate buybacks and central bank buying are coordinated. But reality is chasing the smart people just like it always chases you and I.
If defaults increase, the Federal Reserve will lose control of interest rates and our debt will not be serviceable.
Inflation is the president’s best ticket. He is expecting his supporters and haters alike to band together and take all of the losses from all of the corrupt central economic planning your government has been engaging in for forty plus years.
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