The above asinine statement is a quote by Scott Bessent. Another Trump shill with his head up his ass.
The reason Trump was forced to scale back his tariff onslaught was because of a ‘Fire Sale’ in the bond market which could have triggered a financial meltdown. (The Standard, Bill Bowkett).
Experts have said that a major US Government bonds sell-off — the likes of which had not been seen since the coronavirus pandemic — caused the White House to backtrack.
The world’s biggest economy could have rapidly spiralled out of control. Meanwhile the S&P stock market index dropped 10% from its record high and entered “correction territory”, because of all the economic uncertainty.
Yup, the king of bankruptcy really knows what he’s doing.
And while this was going on US Treasury yields were spiking, endangering interest rates.
A bond crash would have threatened the stability of the entire global financial system, causing extreme economic damage.
Japan and China began dumping US treasury bonds “as the belief was that US Treasury Bonds was not a good place to do business.”
But Bessent’s comment?
Sure Scott…you were going to do it all along.
What bullshit you pathological liar.
Actually, industry was queasy over the fire sale by a completely asinine administration.
What trump did was instil real fear into investors, who saw with their own eyes that trump hasn’t even got the wildest idea of how to manage America’s economy.
The statement from Russ Mould, investment director at stockbroker A.J. Bell, says it all;
“It’s dangerous to think a massive rally will definitely happen, given how trump is so unpredictable, but the ‘just imagine’ thought will now be firmly ingrained into investor’s minds. It would only take a new sign of aggression from Trump or a trading partner fighting back hard to cause upset again.”
Japan, Britain and France were terrified that higher treasury yields would push up borrowing costs for countries grappling with higher amounts of debt.
The reality is simple.
Trump hasn’t got a clue.
The moron almost caused a meltdown on the bond markets, which would have led to another 2008 economic collapse.
This had nothing to do with any kind of intelligent decision by the American administration.
It completely illustrated the supreme ignorance of Trump’s position and that fact that at any moment Trump could send America into a depression if he acts like the child he is.
Deep Future Pain
But what is coming, especially for Americans, is deep financial pain.
The 125% tariffs on China will result in U.S. consumers paying more than twice as much for virtually every manufactured product that China produces within 90 days.
Supply chains are being hollowed out, including those in agricultural products and food stuffs. Food prices will increase by 10% in short order.
When Americans next need to buy groceries, they will find their costs steadily increasing day by day.
Coffee, seafood, fresh fruit and vegetables will be hit the most, as the vast majority of these store products come from offshore.
Fruit and vegetables are mostly imported from Mexico and Canada, both subject to 25% tariffs, so these foods especially will see large price increases.
The list of items that will increase for consumers from places like Amazon, Walmart, Target, etc., etc., is going to be so long and extensive that Americans will literally be shocked at what little they can buy, which won’t have increased substantively.
How much exactly is anyone’s guess, as a small portion of the increases will be borne by retailers and wholesalers, — but the vast majority of the 125% increase on thousands of manufactured goods from cameras, to cellphones to televisions will increase by that amount.
Trump has started a process that may well undermine America’s economy so substantively that for the average American, it will feel cataclysmic, but for the poor, it will be.
More power to you America.
You own this. You brought this.
You can experience it.
Leave a Reply