When an honest trade happens, both sides win. Each gets something he didn’t have before and gives up something he considers less valuable. Bringing in politics just queers the deal.
If international trade has been mostly fair for the past 50 years, why has the US lost tens of thousands of factories, millions of manufacturing jobs and its dominance over many critical industries (pharmaceuticals, electronics, computer chips, textiles, steel, etc.). It's clear to me the trade related treaties we've entered into and the non-monetary trade restrictions we tolerated have benefited other nations more than they benefited the US. This president is the first in my lifetime to highlight the problem and to take bold actions directed at reversing the negative impact of our historic trade practices on American jobs, American companies and America's national security. Trump's answer to the trade imbalances may not be the perfect solution but it's the best and only serious answer I've heard anyone promote. Our traditional politicians have been ignoring this critical problem for decades. We've become a debtor nation with a devastated middle class as a result. It's past the time to be taking major corrective actions. For America's sake, I hope it's not too late.
Alan , do not forget money goes where it is treated best. This is a 2 way street. Things are complicated because One has so many rules and regulations to follow. Not only in Your own country , but all of the world. You and I do not need rules and regulations to buy from one another. A hand shake will do because We trust one another. Win Win deals. But then I like a simple life free from government intervention. Or Maybe I still live in a dream world!
Thank you Don, I’m awakening the last few years from the dream into our actual dystopian nightmare. President Trump is upsetting their apple cart and they DO NOT like it, or appreciate what he’s trying to accomplish. The more squealing I hear and see from all sides, I do believe that he’s on the right track. Let’s give the man a chance! It’s more than our so-called elite’s and politicians have done for us these past decades. Appreciate your posts.
I agree that free trade is good trade. The problem is international free trade doesn't exist. Every nation tries to tilt the trading relationship to their favor, but none should be as capable of actually doing this as the USA. We possess the largest consumer market in the world. We have not taken advantage of our dominance as a trading partner. If the US politicians had protected American workers and American industries as well as our international trading partners have protected their native industries and workers, we would not the debtor nation with the disappearing middle class that we are today.
And when is good. I'll give you four chickens for that goat. That's about it there has never been any free international trade ever. " Here is a bottle of glass beads. "Ooloooh big whampom." "Can we settle these fifty thousand acres just north of here? " OK it's yours. That was
fair trade correct? At that moment it benefited each party.
Bill, you've provided examples of neighbors bartering with neighbors. That was fair trade without tariffs, VAT's, government subsidies, counterfeiting, onerous regulations, IP theft, etc. Once you overlay tariffs, taxes, regulations and other offensive practices over international trade, the entire trading process stops being fair.
Alan,I appreciate your outrage but feel that the US has lost critical industries not because of trade deals but because of the basic economic fact that someone else can do it cheaper and just as well .
Hiding behind trade barriers will perhaps give some short term relief to some industries but will eventually result in inefficient and uncompetitive sectors .
Better to concentrate on what you can do best and let others do the same .
Can the Europeans build cars cheaper and as well as the US carmakers? Can the Japanese grow rice cheaper and better than US farmers. Can the Chinese manufacture and ship steel to the US cheaper than American steelmakers without the advantage of slave and child labor? Are we Okay with buying cars made in Mexico where the average cost of labor for Mexican auto workers is $6 per hour? Even if the answer to these questions is yes, I still want to protect our US based manufacturers and American workers. I don't care as much about who owns the US based businesses as much as I do about where those businesses are based. We want a prosperous American middle class, and we need US based supply chains for national security purposes. These are two good reasons to change the status quo related to international trade.
Unfortunately, Alan, if/when manufacturing comes back to the U.S. it isn't going to help middle class workers - robotics are the future of manufacturing. Also one of the reasons the elites favor de-population - too many out of work peons and besides using up resources they have a tendency to revolt when there is no food on the table. The World is a-changin'.....and it ain't going back.
Someone has to install and maintain the robots. Someone has to provide the quality control oversight that machines are currently incapable of doing. Someone has to design the programming and write the code. It will certainly take less people to make a new car than it did previously, but it will still take people to supervise, troubleshoot and upgrade the production processes. These will be good paying jobs that will reduce the need for two breadwinners in the family. I'm old enough to remember the times when Moms stayed home to raise the kids and grandma lived with her family and not in a nursing home. The family breadwinner made enough money to buy a home, pay the bills and live reasonably well back then. I believe we were a better and stronger country back then. The world may have changed and continues to change, but there is no reason things can't change for the better.
And I don’t think a middle class worker making a decent wage is going to care about paying an extra couple bucks for American or foreign made goods. It’s about the hollowing out of our industries and middle classes for the last 50 freaking years!
Don't forget the "aiding" by our esteemed so-called leaders...when probably after a Lewenski moment "slick Willie" gave our software to the Chinese so they could get a
Wow herder! I'm sure not too many here remember the treason Ms O'Leary commited against America, of course under the direction of our child molesting president (sick Willie). Hazel O'Leary "Resigned" before her corrupt term was up, and our sweet fellow corrupt RINOs never pursued her and Clinton's treason, because most of them would have followed to the gallows...
Mr. Spachman: Also, onerous regulations chased many businesses out of the U.S. And, hopefully, Pres. Trump's folks will greatly slash many of these regulations.
Thank you Alan! All common sense issues that proves our government and banks/businesses have whored themselves out for decades of profit over country. Whores who have all become generational wealthy as our middle class tax payers have been decimated and many have lost everything because of these greedy whores. I know that many of our dear fellow readers are concerned about losing a few bucks in the market, but it will be an incredible buying opportunity and give you a chance to make some real money, buying low and busting high when the media stops their TDS BS. So let the globalist whores whine, protest and cry over losing a few dollars just to make Trump look bad, but we are a broken country as is all the West, and have to go through some pain to fix the problems, and hopefully come out better than ever🇺🇸🇺🇸🙏
Mr. L, So true! Also, the 10-year bond's interest rate has dropped to just below 4%. Bill has been warning that this bond rate would eventually move above 5%, causing all kinds of problems with refinancing the debt. Of course, he didn't mention this lower interest rate in his essay. And he is still pushing the TDS fantasy that it was Pres. Trump in 2020, not the Democrat governors, who threw millions of Americans out of work, requiring the Fed to prop up the workers; and, of course prop up the Dem governors' authoritarian experiment under the cover of the phony COVID nonsense. And he quotes some periodical I have never heard of that indicated that the U.S. rebuked Pres. Trump's tariffs on Canada in a major bipartisan way, when it barely passed 51-48; and, only because Sen. Rand Paul opposed it, and enabled the three weaselly RINOs (Mitch, Susan, & Lisa) to hide behind him.
Thanks Alan, Mr Bill can’t see the forest for the trees. This is going to be transformative and there will be some pain. You can’t turn around 75yrs of bad to worse policies without some disruption’s. I guess Bill Bonner would prefer for the country to just slide into oblivion, where he can count his gold stacks on the deck of the Queen Mary/Titanic!
Honestly Steve, I don’t even know why I bother sometimes?!? These people are intensely dense. You can’t have a decent conversation with them. And me, of all people, should know better, as I have zero patience when it comes down to it! 🤪
Yes brother, it’s just so evident that the party of mental illness needs to be institutionalized and kept off our streets and out of government. These most mentally disturbed individuals will be out in force tomorrow and I’m just looking forward to the show. It should be extremely entertaining 😊
I know Bob! I’m sooo excited and waiting for an entrance opening and stock that got destroyed by this nonsense. Such an incredible opportunity to make a killing:) but in the meantime, buy the dip In crypto 🚀
Hi Steve, not sure if you’re aware of it, but BITU is a 3X bitcoin trading vehicle. I’m thinking of checking it out while bitcoin is low. 😂 this is definitely NOT trading advice, I don’t have very much in crypto right now.
Yes Mike, any stock committed to Bitcoin will rise these next few months with Bitcoin. I don't own any BITU, but have lots of HUT, CORZ and MARA, not only for their mining, but for their Energy operations. Brilliant! Do your research on these and only invest money you have to lose, because like tommorow, nothing is guaranteed:) But these seem like such bargains prices now...
Other points they're talking about the average terror of being two per cent. That's because we don't sell anything that has high Is tarrifs. That low two percent ma number seems like an indication of elastic demand. Who's going to pay a hundred percent or thirty percent for an american car? Effectively.The tariff on cars is now zero since nobody buys them. Fecious argument.
"Republicans joined Democrats to extend the bipartisan rebuke." Right! such a complete and utter joint wisdom! The same wisdom that has us 36T in debt due to their brilliant reasoning.
Not being supportive to any and everything this administration does..... still baffled by statements like "Many people speculated that Trump would count value-added taxes as tariffs, even though they aren’t — European producers selling to the EU market pay the same VAT as US producers, so it doesn’t discriminate and therefore isn’t protectionist."
In effect it is. If an american carmaker exports his product to the EU at X Price this euquals (almost) the consumerprice of it´s american customers. Entering the EU and reaching their consumer it´s X + 20%. So the competitiveness of the US company gets reduced by exactly this percentage.
If the european competitor who has to sell the product at his net costs plus 20% to his european customer, thats looks equal. It´s not. As soon as he exports the product to the US he does so at his net price and faces a low tax of in some cases between 1 to 3 %.
"But trade is not meant to be part of the political world."
This is about the most hilarious part of the whole missive. How about these rackets, of US - Power like IMF, WTO, the establishment of the Petrodollar ?
"Because, the foreigners don’t pay the tariff penalties. US consumers do."
There are three parties who are effected and who have influence on the way these extra costs are distributed. The Manufacturer might tighten his margin, the whole-/retailseller might tighten his margin and in the end there might be an extra burden for the consumer. Depending on products, market situation, consideration on market shares defended or given up and much more, the statement above lacks any level of differenciation.
If manufacturers could have sold thier goods for more, they would have.
Tariffs are not going to change this.
They will absorb and or solution through other means (Build in the US, countries drop thier tariffs/we drop ours etc.) . This is a bunch of feces and we all know it. Why the stock market drop? Easy. The ultra wealth like the status quo so they are sticking it to the administration, basically getting thier hands slapped and out of the cookie jar.
Not entirely in your team. Quite a many products have such huge premiums on the factory price, not rare 2000 to 5000 % that I see room for sharing the burden between the parties involved. Textiles come to mind as well as pharmaceuticals, electronics...
Bill, hate to break it to you, but there's no such thing as free trade and there ain't no Santa Claus. Like it or not, governments the world over do nothing but steal from their citizens and muck things up. You'll never get any of your win-win deals as long as government is involved. I find it amusing and somewhat sad to see you regurgitating dogma. Stock market and 10 yields down is the right direction if you give a lick about sustainability. Its not that difficult; you need to produce in order to consume.
Bonner is right about Trump's stimmy checks but wrong about Trump shutting down the economy - the State Governors and City Mayors did that. But it can be argued that Trump's stimmy checks were part of the inflation problem but mainly because he lost the 2020 election resulting in an anti-energy, anti-production Biden presidency who also doubled down on the stimmy checks. Funny how Bonner never mentions that. And then Bill goes on to quote some very questionable authorities, especially Paul Krugman who Bonner admits is never right about anything but apparently is now right about tariffs because Bonner agrees with him.
But the height of absurdity in Bonner's column today is his contention that when it comes to trade, he is an advocate of the Win-Win deal. Maybe so, but his time horizon is the present and he doesn't take into account any future consequences. Bill doesn't differentiate between trading with predominately free countries vs. countries like China and others that would like to dominate us. Bill doesn't seem to care if critical American industries are decimated leaving us vulnerable to countries that would like to do us harm. A truly Win-Win trade is a trade that takes all the variables and consequences into account, not just the current trade.
Trumps contention (and there are differing opinions on this) is that it is not just about reciprocal tariffs - that many countries have other means in addition to tariffs to block US goods from entering their country. Those "other means" were taken into account when setting the tariffs on each country.
By the way, I am not necessarily whole-heartedly backing Trump's tariffs, but I am willing to see where this all goes. We need to bring back crucial industries to the USA or we will not survive China's military buildup and future economic dominance. A country that limits the freedom of its own citizens will not be concerned about our freedom.
JPG, You bring up many points. It is a game of patience at this point as there are all the moving parts involved . The world is not a free and simple place Like My mind is. Thanks for Your input.
So all of the sudden Krugman is right? That must be one of the most stupid observations ever. Krugman is an idiot, never right. So citing him to support your position qualifies as infantile.
That certainly is a way to get more people involved in paying for government (the entire and sole purpose of taxes, except for the added benefit of government's being able to "discipline" the people). I have read that up to 50% of citizen-voters pay no income tax, so a more "inclusionary" means of taxation would, indeed, be appropriate. Best always. PM
There are figures out since long that somewhat 40 % of US households were litteraly broke if an unexpected expense of 2000 USD would occur. That seems a good explanation why many don't "qualify" for income tax ?
Anyone who lives here and calls him/herself a citizen must shoulder part of the burden, especially when that individual is extended the vote merely by means of existence and registration. It's why I favor the flat tax. Make a dollar? You pay 10 cents. Best always. PM
Get rid of income tax by all means, but tariffs are not the substitute. You need to tax what people own, not what they earn. Taxing productivity kills it. Taxing
what you own, real estate etc, levels the playing field. Which is why those who own everything will prevent it at all cost.
"In his first term, Trump committed one of the biggest blunders in US economic history — shutting down the economy and replacing real output with an extra $4 trillion in phony, printed-up stimmy checks."
Bill, completely agree. Ask yourself this question: "How would the self-professed experts you often quote in your missives and society in general have reacted if Trump did the right thing and refused to close down the economy?" I think we all know the answer to this question. The sad truth is that America has been overrun by economic degenerates, parasites, and cowards. These folks will need to change their ways in a hurry if one ever expects America to relive its past glory. The best way for these folks to learn is the school of hard knocks. Let them suffer so they'll never ever make these ridiculous mistakes again. Production must always come before consumption.
"Its odd that no one is discussing." that these are dangerous times, gold price is rising while stock markets are in collapse. Think about this for a minute. It is very odd that main stream media isn't discussing how dangerous these times are. Why are they discussing this? I would suggest that everyone commenting on Bill's absurd arguments knows exactly why they are discussing it.
Very sorry to read this. The older the investor the less time to sit out, catch up with former losses. We are in the state of "consumption", so having to use some of the savings for current expenses....
Your first paragraph is correct. If the trade is fair and even between nations then it is a win win. We have a deficit of 36 trillion dollars; this does not appear to be ‘fair’ trading. You also complain about DOGE getting rid of fraud and unnecessary spending. The stock market has been very over-priced/over bought. The PE ratio is far greater than normal. AP
The operative word here is "honest". While the US trade imbalance keeps making the financial leveraged cohort of the "players, the 20% ers" asset wealthy, wage earners suffer with constant consumer inflation and high cost debt.
I have no idea whether Trump's "plan?" might work in the long run, but clearly the current game can't go on as is.
If international trade has been mostly fair for the past 50 years, why has the US lost tens of thousands of factories, millions of manufacturing jobs and its dominance over many critical industries (pharmaceuticals, electronics, computer chips, textiles, steel, etc.). It's clear to me the trade related treaties we've entered into and the non-monetary trade restrictions we tolerated have benefited other nations more than they benefited the US. This president is the first in my lifetime to highlight the problem and to take bold actions directed at reversing the negative impact of our historic trade practices on American jobs, American companies and America's national security. Trump's answer to the trade imbalances may not be the perfect solution but it's the best and only serious answer I've heard anyone promote. Our traditional politicians have been ignoring this critical problem for decades. We've become a debtor nation with a devastated middle class as a result. It's past the time to be taking major corrective actions. For America's sake, I hope it's not too late.
Alan , do not forget money goes where it is treated best. This is a 2 way street. Things are complicated because One has so many rules and regulations to follow. Not only in Your own country , but all of the world. You and I do not need rules and regulations to buy from one another. A hand shake will do because We trust one another. Win Win deals. But then I like a simple life free from government intervention. Or Maybe I still live in a dream world!
Thank you Don, I’m awakening the last few years from the dream into our actual dystopian nightmare. President Trump is upsetting their apple cart and they DO NOT like it, or appreciate what he’s trying to accomplish. The more squealing I hear and see from all sides, I do believe that he’s on the right track. Let’s give the man a chance! It’s more than our so-called elite’s and politicians have done for us these past decades. Appreciate your posts.
Good points about the squealing. Never thought of it that way.
👌
I agree that free trade is good trade. The problem is international free trade doesn't exist. Every nation tries to tilt the trading relationship to their favor, but none should be as capable of actually doing this as the USA. We possess the largest consumer market in the world. We have not taken advantage of our dominance as a trading partner. If the US politicians had protected American workers and American industries as well as our international trading partners have protected their native industries and workers, we would not the debtor nation with the disappearing middle class that we are today.
Thanks for Your reply.
And when is good. I'll give you four chickens for that goat. That's about it there has never been any free international trade ever. " Here is a bottle of glass beads. "Ooloooh big whampom." "Can we settle these fifty thousand acres just north of here? " OK it's yours. That was
fair trade correct? At that moment it benefited each party.
Bill, you've provided examples of neighbors bartering with neighbors. That was fair trade without tariffs, VAT's, government subsidies, counterfeiting, onerous regulations, IP theft, etc. Once you overlay tariffs, taxes, regulations and other offensive practices over international trade, the entire trading process stops being fair.
Amen brother Alan, preach it!
Alan,I appreciate your outrage but feel that the US has lost critical industries not because of trade deals but because of the basic economic fact that someone else can do it cheaper and just as well .
Hiding behind trade barriers will perhaps give some short term relief to some industries but will eventually result in inefficient and uncompetitive sectors .
Better to concentrate on what you can do best and let others do the same .
Regards
John
Can the Europeans build cars cheaper and as well as the US carmakers? Can the Japanese grow rice cheaper and better than US farmers. Can the Chinese manufacture and ship steel to the US cheaper than American steelmakers without the advantage of slave and child labor? Are we Okay with buying cars made in Mexico where the average cost of labor for Mexican auto workers is $6 per hour? Even if the answer to these questions is yes, I still want to protect our US based manufacturers and American workers. I don't care as much about who owns the US based businesses as much as I do about where those businesses are based. We want a prosperous American middle class, and we need US based supply chains for national security purposes. These are two good reasons to change the status quo related to international trade.
Unfortunately, Alan, if/when manufacturing comes back to the U.S. it isn't going to help middle class workers - robotics are the future of manufacturing. Also one of the reasons the elites favor de-population - too many out of work peons and besides using up resources they have a tendency to revolt when there is no food on the table. The World is a-changin'.....and it ain't going back.
Someone has to install and maintain the robots. Someone has to provide the quality control oversight that machines are currently incapable of doing. Someone has to design the programming and write the code. It will certainly take less people to make a new car than it did previously, but it will still take people to supervise, troubleshoot and upgrade the production processes. These will be good paying jobs that will reduce the need for two breadwinners in the family. I'm old enough to remember the times when Moms stayed home to raise the kids and grandma lived with her family and not in a nursing home. The family breadwinner made enough money to buy a home, pay the bills and live reasonably well back then. I believe we were a better and stronger country back then. The world may have changed and continues to change, but there is no reason things can't change for the better.
Wishin' and Hopin', Alan. Wishin' and Hopin'. Got Gold?
And I don’t think a middle class worker making a decent wage is going to care about paying an extra couple bucks for American or foreign made goods. It’s about the hollowing out of our industries and middle classes for the last 50 freaking years!
Stupid statement , Mike
Don't forget the "aiding" by our esteemed so-called leaders...when probably after a Lewenski moment "slick Willie" gave our software to the Chinese so they could get a
missile launched!!
Wow herder! I'm sure not too many here remember the treason Ms O'Leary commited against America, of course under the direction of our child molesting president (sick Willie). Hazel O'Leary "Resigned" before her corrupt term was up, and our sweet fellow corrupt RINOs never pursued her and Clinton's treason, because most of them would have followed to the gallows...
Alan, you are so right
Mr. Spachman: Also, onerous regulations chased many businesses out of the U.S. And, hopefully, Pres. Trump's folks will greatly slash many of these regulations.
Thank you Alan! All common sense issues that proves our government and banks/businesses have whored themselves out for decades of profit over country. Whores who have all become generational wealthy as our middle class tax payers have been decimated and many have lost everything because of these greedy whores. I know that many of our dear fellow readers are concerned about losing a few bucks in the market, but it will be an incredible buying opportunity and give you a chance to make some real money, buying low and busting high when the media stops their TDS BS. So let the globalist whores whine, protest and cry over losing a few dollars just to make Trump look bad, but we are a broken country as is all the West, and have to go through some pain to fix the problems, and hopefully come out better than ever🇺🇸🇺🇸🙏
Mr. L, So true! Also, the 10-year bond's interest rate has dropped to just below 4%. Bill has been warning that this bond rate would eventually move above 5%, causing all kinds of problems with refinancing the debt. Of course, he didn't mention this lower interest rate in his essay. And he is still pushing the TDS fantasy that it was Pres. Trump in 2020, not the Democrat governors, who threw millions of Americans out of work, requiring the Fed to prop up the workers; and, of course prop up the Dem governors' authoritarian experiment under the cover of the phony COVID nonsense. And he quotes some periodical I have never heard of that indicated that the U.S. rebuked Pres. Trump's tariffs on Canada in a major bipartisan way, when it barely passed 51-48; and, only because Sen. Rand Paul opposed it, and enabled the three weaselly RINOs (Mitch, Susan, & Lisa) to hide behind him.
Thanks Steve, rest assured, you’re not alone in your thinking! Cheers
Thanks Alan, Mr Bill can’t see the forest for the trees. This is going to be transformative and there will be some pain. You can’t turn around 75yrs of bad to worse policies without some disruption’s. I guess Bill Bonner would prefer for the country to just slide into oblivion, where he can count his gold stacks on the deck of the Queen Mary/Titanic!
Alan, Simple answer. Capitalist exploitation of Labor.
How does that labor thingy work out under communism?
🤫 Don’t wake the brain dead
Honestly Steve, I don’t even know why I bother sometimes?!? These people are intensely dense. You can’t have a decent conversation with them. And me, of all people, should know better, as I have zero patience when it comes down to it! 🤪
Yes brother, it’s just so evident that the party of mental illness needs to be institutionalized and kept off our streets and out of government. These most mentally disturbed individuals will be out in force tomorrow and I’m just looking forward to the show. It should be extremely entertaining 😊
How are U geneasses net worth doing lately ?
Huh ?
🤣
Uh Bill haven't you been complaining how overvalued and fake the stock market has been? I see this as a good purging and healthy for the market.
I know Bob! I’m sooo excited and waiting for an entrance opening and stock that got destroyed by this nonsense. Such an incredible opportunity to make a killing:) but in the meantime, buy the dip In crypto 🚀
Agreed
Hi Steve, not sure if you’re aware of it, but BITU is a 3X bitcoin trading vehicle. I’m thinking of checking it out while bitcoin is low. 😂 this is definitely NOT trading advice, I don’t have very much in crypto right now.
Yes Mike, any stock committed to Bitcoin will rise these next few months with Bitcoin. I don't own any BITU, but have lots of HUT, CORZ and MARA, not only for their mining, but for their Energy operations. Brilliant! Do your research on these and only invest money you have to lose, because like tommorow, nothing is guaranteed:) But these seem like such bargains prices now...
Thanks for your response Steve, I will definitely be checking into those
Also , isn't this getting us to a better gold dow ratio. Not sure , but I think goal , take a small hit.
I am raking it in today since I bought put options on Canadian (EWC) and German stocks (EWG).
Smart
Other points they're talking about the average terror of being two per cent. That's because we don't sell anything that has high Is tarrifs. That low two percent ma number seems like an indication of elastic demand. Who's going to pay a hundred percent or thirty percent for an american car? Effectively.The tariff on cars is now zero since nobody buys them. Fecious argument.
yes, don't call that out, it doesn't fit with BBB's narrative.
"Republicans joined Democrats to extend the bipartisan rebuke." Right! such a complete and utter joint wisdom! The same wisdom that has us 36T in debt due to their brilliant reasoning.
Not being supportive to any and everything this administration does..... still baffled by statements like "Many people speculated that Trump would count value-added taxes as tariffs, even though they aren’t — European producers selling to the EU market pay the same VAT as US producers, so it doesn’t discriminate and therefore isn’t protectionist."
In effect it is. If an american carmaker exports his product to the EU at X Price this euquals (almost) the consumerprice of it´s american customers. Entering the EU and reaching their consumer it´s X + 20%. So the competitiveness of the US company gets reduced by exactly this percentage.
If the european competitor who has to sell the product at his net costs plus 20% to his european customer, thats looks equal. It´s not. As soon as he exports the product to the US he does so at his net price and faces a low tax of in some cases between 1 to 3 %.
So complicated to see the difference?
"But trade is not meant to be part of the political world."
This is about the most hilarious part of the whole missive. How about these rackets, of US - Power like IMF, WTO, the establishment of the Petrodollar ?
Dear Author, please think twice.
Sorry Sluggo, I meant to say that the Dow was down 15% from the high, not 18%
Another of the numerous quacks:
"Because, the foreigners don’t pay the tariff penalties. US consumers do."
There are three parties who are effected and who have influence on the way these extra costs are distributed. The Manufacturer might tighten his margin, the whole-/retailseller might tighten his margin and in the end there might be an extra burden for the consumer. Depending on products, market situation, consideration on market shares defended or given up and much more, the statement above lacks any level of differenciation.
If manufacturers could have sold thier goods for more, they would have.
Tariffs are not going to change this.
They will absorb and or solution through other means (Build in the US, countries drop thier tariffs/we drop ours etc.) . This is a bunch of feces and we all know it. Why the stock market drop? Easy. The ultra wealth like the status quo so they are sticking it to the administration, basically getting thier hands slapped and out of the cookie jar.
Not entirely in your team. Quite a many products have such huge premiums on the factory price, not rare 2000 to 5000 % that I see room for sharing the burden between the parties involved. Textiles come to mind as well as pharmaceuticals, electronics...
🎯
Bill, hate to break it to you, but there's no such thing as free trade and there ain't no Santa Claus. Like it or not, governments the world over do nothing but steal from their citizens and muck things up. You'll never get any of your win-win deals as long as government is involved. I find it amusing and somewhat sad to see you regurgitating dogma. Stock market and 10 yields down is the right direction if you give a lick about sustainability. Its not that difficult; you need to produce in order to consume.
Craig , You just broke My heart. "no Santa Claus". Not only broke it ,but tore it out. LOL
Bonner is right about Trump's stimmy checks but wrong about Trump shutting down the economy - the State Governors and City Mayors did that. But it can be argued that Trump's stimmy checks were part of the inflation problem but mainly because he lost the 2020 election resulting in an anti-energy, anti-production Biden presidency who also doubled down on the stimmy checks. Funny how Bonner never mentions that. And then Bill goes on to quote some very questionable authorities, especially Paul Krugman who Bonner admits is never right about anything but apparently is now right about tariffs because Bonner agrees with him.
But the height of absurdity in Bonner's column today is his contention that when it comes to trade, he is an advocate of the Win-Win deal. Maybe so, but his time horizon is the present and he doesn't take into account any future consequences. Bill doesn't differentiate between trading with predominately free countries vs. countries like China and others that would like to dominate us. Bill doesn't seem to care if critical American industries are decimated leaving us vulnerable to countries that would like to do us harm. A truly Win-Win trade is a trade that takes all the variables and consequences into account, not just the current trade.
Trumps contention (and there are differing opinions on this) is that it is not just about reciprocal tariffs - that many countries have other means in addition to tariffs to block US goods from entering their country. Those "other means" were taken into account when setting the tariffs on each country.
By the way, I am not necessarily whole-heartedly backing Trump's tariffs, but I am willing to see where this all goes. We need to bring back crucial industries to the USA or we will not survive China's military buildup and future economic dominance. A country that limits the freedom of its own citizens will not be concerned about our freedom.
JPG, You bring up many points. It is a game of patience at this point as there are all the moving parts involved . The world is not a free and simple place Like My mind is. Thanks for Your input.
I enjoy your sense of humor.
Thanks John, I appreciate your input/posts, always informative and interesting! Peace ✌️
So all of the sudden Krugman is right? That must be one of the most stupid observations ever. Krugman is an idiot, never right. So citing him to support your position qualifies as infantile.
Infantile, or worse!
About time we do tariffs and get rid of the income tax. Sorry Bill you are just wrong.
That certainly is a way to get more people involved in paying for government (the entire and sole purpose of taxes, except for the added benefit of government's being able to "discipline" the people). I have read that up to 50% of citizen-voters pay no income tax, so a more "inclusionary" means of taxation would, indeed, be appropriate. Best always. PM
I believe the numbers show that the top 50% of federal tax payers pay 97.5%, the bottom half pay 2.5%. (Individuals.)
RB.
There are figures out since long that somewhat 40 % of US households were litteraly broke if an unexpected expense of 2000 USD would occur. That seems a good explanation why many don't "qualify" for income tax ?
Anyone who lives here and calls him/herself a citizen must shoulder part of the burden, especially when that individual is extended the vote merely by means of existence and registration. It's why I favor the flat tax. Make a dollar? You pay 10 cents. Best always. PM
No dissent Paul, but the shere poverty in the 4 lower decimals asks for some differenciation in my opinion.
Get rid of income tax by all means, but tariffs are not the substitute. You need to tax what people own, not what they earn. Taxing productivity kills it. Taxing
what you own, real estate etc, levels the playing field. Which is why those who own everything will prevent it at all cost.
"In his first term, Trump committed one of the biggest blunders in US economic history — shutting down the economy and replacing real output with an extra $4 trillion in phony, printed-up stimmy checks."
Bill, completely agree. Ask yourself this question: "How would the self-professed experts you often quote in your missives and society in general have reacted if Trump did the right thing and refused to close down the economy?" I think we all know the answer to this question. The sad truth is that America has been overrun by economic degenerates, parasites, and cowards. These folks will need to change their ways in a hurry if one ever expects America to relive its past glory. The best way for these folks to learn is the school of hard knocks. Let them suffer so they'll never ever make these ridiculous mistakes again. Production must always come before consumption.
"Its odd that no one is discussing." that these are dangerous times, gold price is rising while stock markets are in collapse. Think about this for a minute. It is very odd that main stream media isn't discussing how dangerous these times are. Why are they discussing this? I would suggest that everyone commenting on Bill's absurd arguments knows exactly why they are discussing it.
To the left, it’s much more important to distract their sheepish followers with trans news, then the entire collapse of Western civilization 😊
Especially since they are trying to collapse western civilization. Look at their record. Nothing could be more obvious.
Lastly, as Dan cites the Investment Director with some of his latest statement:
The Savery Family so my assumption is on a real honeymoon with GOGL. Today another 15 % off.
Hafnia, a true success, now down 25 % +, and Teekay is a close runner up.
Yes, old knowledge, timing the market is not only difficult, but often impossible. But such poor timing has a quality of its own.
Not really a joke, sluggo.
Very sorry to read this. The older the investor the less time to sit out, catch up with former losses. We are in the state of "consumption", so having to use some of the savings for current expenses....
Warren Buffet what a crook he is stopping the pipe line so he can haul all that oil on his rail lines.
Outsized success is not achievable by following the "rules". Best always. PM
Dang railroad robber barons!
Bill:
Your first paragraph is correct. If the trade is fair and even between nations then it is a win win. We have a deficit of 36 trillion dollars; this does not appear to be ‘fair’ trading. You also complain about DOGE getting rid of fraud and unnecessary spending. The stock market has been very over-priced/over bought. The PE ratio is far greater than normal. AP
When an honest trade happens, both sides win.
The operative word here is "honest". While the US trade imbalance keeps making the financial leveraged cohort of the "players, the 20% ers" asset wealthy, wage earners suffer with constant consumer inflation and high cost debt.
I have no idea whether Trump's "plan?" might work in the long run, but clearly the current game can't go on as is.