Trump tariffs are going to accelerate the downfall of America. Imagine when the whole world tells Trump to fuck off with his tariffs. Some country is going to call his bluff, then another and bam becomes an instant domino effect.
The government needs its allies to buy their debt to keep everything afloat. It’s America’s Achilles heel…
I still dont get it, tariffs will actually make people's spending more. Why it matters?
Geopolitically it’s going to turn people off to America to the point where they will stop doing business or buy American bonds. Countries are tired of being told what to do and being treated like crap.
BRICS wasn’t created in a vacuum. Countries want alternatives and will create them. Bitcoin is another option as well.
Everything leads to #Bitcoin, but worst still, #Bitcoiner is not a majority yet. The whales will prevent it from happening by scooping up the existence of Bitcoin supply.
Tariffs are a tax on the American consumer. Say a 25% tariff is levied on Chinese widgets. That 25% tax is paid by the American importer when a shipment of Chinese widgets arrives in the country. The importer then passes that additional expense on to distributers and/or consumers in the form of higher prices for the widgets. So, the American consumer ends up paying more for the widgets. Then what happens is fewer consumers buy widgets due to elevated price. They may buy another widget from another country that isn't under tariff, or from a domestic manufacturer if one makes comparable widgets. That's the basis for the claim that tariffs will boost domestic profits. But that's assuming America makes a comparable widget for a lower price than the tariffed widgets, or widgets from non-tariffed nations.
Where it gets more consequential is when a tariff is imposed on a raw material that America can't produce, or at least not in sufficient quantities to meet the demand. Like steel and aluminum. America buys a lot of steel and aluminum from Canada because we can't produce enough to meet the demand. We previously had free trade with Canada, so steel and aluminum could enter America without any additional expenses, meaning it was available to consumers at the lowest possible price. But with a 25% tariff, everyone in America who uses steel or aluminum in their products is going to have to pay more because there isn't a cheaper domestic option available. The result is that everything that uses steel and aluminum is now significantly more expensive. And that suppresses demand, and consumer buying which has an adverse impact on the economy.
There are more complexities to it, but this is a good view of the fundamentals.
I don't think you understand the basics of debt & being able to collect.
The American taxpayer isn’t funding the debt. Bond holders are the ones that give the government the ability large borrow sums of cash
Except Trump uses tariffs to make better deals for America. Most other countries can't survive the short term of tariffs they would need to go through in order to, as you say, "call his bluff", while in the meantime, those countries need to eat the costs because people already ordered things for a set price that hasn't been sent yet. So the question is really, can those companies survive while their countries refuse to bend to Trumps other demands? Or will they fold because their own country depends on it? If they can, that's fine for that country, but most countries can't handle that.
