If you follow (political) social media or the network “mainstream” media news, you might have the impression that the tariffs are destroying the world and causing havoc.
Well, I’m in a “mood” today and I’d like to vent by saying to the world “Don’t be a Dumb****”.
Notice the stock market is still higher than it was through most of the Biden administration.
Maybe you ignored me five years ago when I said the SARS-CoV2 virus wasn’t a big deal (and that wearing masks was stupid and “locking down” was tyranny). Maybe you ignored me four years ago when I said not to take the experimental shots (and showed data that demonstrated they were increasing the death rate). Maybe you ignored me a couple years ago when I recommended buying gold at $1,700 an ounce. Maybe you didn’t jump on board with Amazon stock in the 2000s. Maybe you ignored NVidia becoming a powerhouse player. Maybe you didn’t buy Tesla stock a year ago when I did at $148 per share. Perhaps you are thinking Tesla is a terrible investment right now as their stock has fallen along with most other stocks and is now only $233 per share.
When you invest in the stock market, invest for what you expect in ten or twenty years, not what you expect to happen next week! When the stock market falls rapidly, keep in mind that most stocks are owned by the very wealthy (so it’s the “rich” that are “losing money”).
Gold has fallen significantly in the past week. Gold falling at the same time the stock market is falling should tell you something: the financial world is not normal.
A friend shared that his Credit Union sent him a note: “As the market reacts to recent changes in tariff and trade policies, it is important to remember your deposits are safe…” Really? What did they accomplish but to cast doubt on whether his deposits really are safe of not. Tip: any “cash” you have is not safe – inflation is eating away the value of the US dollar and as the US dollar slips from being the reserve currency of the world well… there is a good chance today’s minor inflation will be trivial in comparison to future inflation.
“Trump’s tariffs” are not what is disrupting the financial world. Governments around the world have been borrowing (deficit spending) money from Central Banks (including our Federal Reserve central banking system) for decades now. Anyone that comprehends how to balance their own household budget knows you can’t do that forever. (I won’t get into the technical details here)
What the world is freaking out about is the leader of the most powerful nation in the world is actually trying to do something about this disaster instead of pretending it doesn’t exist and kicking the problem into the future (where it would only become a bigger problem). Trump, Musk, Gabbard, Kennedy and company are all doing what they were elected to do: change the system! The news agencies (and others like Catherine Austin Fitts) are trying to freak everyone out about how fast this is happening. Take a step back and look at the actual changes and you might agree with me that change actually isn’t happening fast enough.
Tariffs are not new. Tariffs don’t create inflation. Tariffs adjust international trade. China may very well be pooping in their drawers because of Trumps tariffs, except that the Chinese take a long term view whereas American’s freak out about tomorrow. We want to buy cheap items from China, and China wants us to pay them for their manufacturing. Both sides need to adjust if the balance changes. Trump is pushing for change. Maybe you can’t buy those cheap washers from China anymore, but maybe you can get a $5 an hour raise in a new job opening down the street by a company looking to fill the void.
I’ve heard talk of “panic buying”. Why panic? Get to work, if you are slacking off, stop slacking off, make sure your manager doesn’t have a reason to fire you, or perhaps go start your own business and produce a quality product at a fair price. The world is full of opportunities and your neighbors would love to hire you if you’ll do a good job.
Now on the other hand, if you wipe out my expectations to collect Social Security, beware, I might just come and light a tariff on fire under your butt!
I read an article today that said China's stock market took a major nosedive today. This is EXACTLY what is needed to help bring American manufacturing back to its former glory. We just have to stick to our guns and give these changes in government a chance to make changes in our lives. As you said, it will NOT happen overnight. You know the saying about Rome not being built in a day. This process, if maintained over the next 10 years or so will more than prove the changes were absolutely the right way to go. Sit back and enjoy the ride.