You have an input good (wood let's say) which used to cost $100
You tax importing it at 25%
Producer marks up the wood to $125 to make up for the tax
There are some corrective forces which can mitigate this a bit but no matter what prices are going up, taxes and restricted trade always cause inefficiency
America has enough wood. It has enough oil. It has enough grain. It has enough coal. It has enough cattle.
America doesn't need to import anything.
Imports are a subsidy.
There is an official narrative that has been promoted my whole life.
The narrative was relentlessly promoted by the globalist CFR/Bilderberg/WEF/Mockingbird legacy media.
The narrative is this: "The smoot hawley tariff was passed by Hoover in 1930 and caused the great depression. Taxes, war, big government, government regulations and the federal reserve are all great for the economy".
This narrative is false. Just like the covid lockdown and vaccine mandate narratives.
Good point. We know that money printing and economic tinkering caused the great depression. And the more FDR tinkered, the worse it got. In the end, he knew there would have to be a financial reset and needed a war to cotinkerer, (Bretton Woods). The European bankers went along because they wanted to end the royal houses of Europe, who had gotten too big for their britches. They also wanted a single EU currency.
I didn't say we need it. We can make everything we need here if we really had to. But the price would go up. That's what you asked about right?
Prices would go up on things people don't need. They would stop buying them and would be better off.
There may be short-term increases on food and fuel, but they wouldn't last, and maybe people will turn to healthier locally source foods than the processed crap coming from overseas.
I looked at a package of peaches recently that were grown in Central America and packaged in Asia. Explain to me how that's better than peaches grown in the US. Sounds more like a subsidy to me.
You can say people don't need them but that's subjective and consumer behavior won't change overnight. I'm not even arguing that the import tax model is bad, but to say there would be no price inflation is wrong.
Our privilege in the United States has been based around being the country which prints the global reserve currency. Other countries buying US treasuries is a form of trade deficit. I understand that most Americans have been fucked by this system since they don't have access to newly printed money and lose their jobs overseas, but we've also been able to live far beyond our actual current productive abilities because of our global trade relationships. GDP is a horrible metric for measuring these things.
I'm not going to freak out about it, but I'm also not going to simp for more taxes and more trade restrictions. Let's see what happens in a year.
The fact is, the system is broken. It needs a complete reset. Things were going to be bad no matter what. We're all getting bent out of shape because of TDS, but we should have been preparing since 2009. Look at the inflation since then and get upset about that. The money printing in 2020 was the "don't look behind the curtain moment". Yet we all did and saw the effect.
Anyone who hasn't spent some of the past 10 years getting ready, is going to suffer. I have a whole group of people I've been stacking bitcoin for. Anyone complaining how the political stuff is going to hurt people have probably not been getting their shit together for themselves or anyone else.
I just told you, I'm not upset. You asked "How would tariffs cause inflation" and I told you how. Bitcoin is the solution to monetary fuckery. Government fuckery is still dangerous on its own.
If you think a "complete reset" happens because the government created a new tax, I think you're being far too generous.
Prepare your friends and family is great advice but it also isn't exactly a vote of confidence in Trumps plan lol.
I don't care about Trump's plan. I don't care about any of the politicians and their plans. I think it's lamentable when people cry over what the media says is bad when the harm has already been done by 100 years of theft. That's the point.
I agree with this. Very true. The media outrage is silly. I luckily don't see it because I'm completely disconnected from that shit.
But do you agree that prices of goods could increase due to a new tax?
Prices on certain things might increase in the short-term, but it won't be any worse that what we've seen in the past few years. People have already cut back.
I agree, but in combination with the broader macro outlook, we could be heading towards much higher inflation very soon.
That's good for those of us who have been stacking. Everything gets cheaper.
Kind of, it depends. It depends how cash flow positive you are. If I don't plan to spend Bitcoin for the next decade, I still have to get fiat raises which keep pace with high inflation. There's also a social element where even if Bitcoin goes to 1M (coming soon), the vultures will be everywhere trying to tax it or steal it.
I reccomend you listed to some Daryll Cooper episodes about what life was like in Weimar or the USSR. We might have a lifeboat, but the seas will not be calm.
I spend and replace my bitcoin. I'm quite happy with bitcoin gains to price increases. For me, everything is going down in price.
Yes this is true. And ultimately if got real bad Bitcoin can be used lol, I just have a very strong phobia of seeing my sat balance go down.
If I want to save a significant amount for my kids and grandkids it is better for me to live as if I don't even have it. High inflation would test that strategy.
I completely understand. I also think if you look at your stack from a dollar-sats parity standpoint, you probably already have enough for the next two generations.
You're completely right. I'm sure my perspective will change a bit around $10M a coin too. It's just way too early to get soft. And if fiat world could not completely implode into shit, that would be really nice.
Orderly, positive, and beneficial. That's what the goal is.
