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Monday, March 26, 2018

Wrong about the election, wrong about tariffs

The experts all said President Trump's tariffs on steel and aluminum would tank the economy. Bloomberg News said getting China to honor copyrights is nice, but, Bloomberg said in an editorial, "starting a trade war, however, is another matter entirely. That’s a plan with a likelihood of high casualties for both sides. No one is arguing that Trump lacks the authority to prosecute such a war. But he, and the American public, should be aware of what’s at stake."

The Obama administration sent out its old Treasury secretary, Larry Summers, to throw shade on the plan.

"I don't see that the steel tariffs are a prudent bit of public policy," he told CNBC, calling it "a bit of a 'Stop, or I'll shoot myself in the foot' kind of strategy."

And globalists lobbied against the plan.

"Forty-five U.S. trade associations representing some of the largest companies in the country are urging President Donald Trump not to impose tariffs on China, warning it would be 'particularly harmful' to the U.S. economy and consumers," Reuters reported.

"The organizations said in a letter sent to Trump on Sunday that potential tariffs on China would raise prices on consumer goods, kill jobs and drive down financial markets."

So what happened today?

The Dow Jones Industrial Average had its biggest point gain in a single day since George W. Bush was president.

"The rally followed the worst week for equities in more than two years, driven in part by investors’ concerns about U.S. tariffs targeting China. President Donald Trump announced on Thursday that he approved of a plan to impose tariffs on about $50 billion in Chinese imports. China responded by saying it would pursue reciprocal tariffs, targeting $3 billion in U.S. goods such as steel, wine and pork," Fox News reported.

What Summers and the rest failed to understand -- or ignored -- was the trade balance is so out of whack that tariffs on Chinese exports yield $50 billion while tariffs on U.S. exports total only $3  billion.

But then the experts also got the election wrong.

Tariffs are a bargaining chip. Trump said jump. They are in midair asking, "How high?"

6 comments:

  1. Larry Summers was on more solid ground when he talked about the Bell Curve and mansplained to the feminists at Harvard why they aren't very good at math.

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    1. He has since been castrated and lobotomized due to speaking the truth. Now he just parrots democrat talking points.

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  2. Bloomberg and his buds are a little distracted trying to collect money for the Tide pod kids march on DC. (http://sultanknish.blogspot.ca/2018/03/who-runs-march-for-our-lives.html)

    Besides, this is just the next round of the war that has been going on for at least 75 years. Let's see what happens next.

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  3. China needs our stuff more than we need theirs. We get a cost saving at the expense of jobs. They get political stability and raw materials and food. A trade war is an inconvenience for us, a risk to their entire system on their side. And we can still get stuff we need made cheaply in Thailand, Vietnam, etc. It's not like there are no other sources.

    What're they gonna do? Prop up NK a while longer? Yeah, that'll make us wanna do business. With Taiwan.

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  4. Why do we keep listening to the people who have been steadily wrong for at least the last 50 years and spectacularly wrong for the past 8? It's like taking fashion tips from a bum.

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