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Replying to Avatar Samson

Why Trump is trying to use tariff’s to pay America’s bills(debt)?

Because when governments run out of money they use inflation as tool to fund their programs.

Problem is you can only inflate the money supply to a certain point, or you will crash the economy with runaway hyperinflation.

If inflation gets to high you need to raise interest rates to bring inflation down. The problem now is you can’t raise interest rates much higher without crashing the economy.

Now you are left with radically cutting government spending to ease the burden. Which when you have the largest government the world has ever seen. Is also a nightmare and will crash the economy. Because the entire world runs off your government spending.

Pinned in a corner. Quite the pickle. Do you see the quagmire ?? America the reserve currency of the world. Got some serious issues which means we ALL do!

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Phil 9mo ago

But how do tariffs solve the quagmire?

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Samson 9mo ago

They probably won’t

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Phil 9mo ago

Agreed. There were other options to deal with the situation. Unsure what tariffs will achieve.

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