The equation of exchange states that all dollars in existence is equal to production plus inflation. The reason for this is because money gets it's value from production, so any changes to the money supply will change the price of money. The value of all dollars in circulation will always equal the sum of all production.
Inflation is added into the equation because the value of money is influenced by inflation. But in order to get the real value of money, you need to use real rates. So the right hand side of the equation is describing the value of money, which should include real rates. The equation is missing rates.
All of Trumps policies are disinflationary. Immigration, deregulation, tariffs, and reducing government are disinflationary. Most of them are also very good for the dollar. It'll take time, but I think rates will be coming down if Trump does half of what he says he's going to do.
Tariffs are not inflationary. No consumption tax is inflationary. Higher prices causes demand to fall, which means businesses will have to lower their prices. That means businesses are making less money, and the difference is going to taxes. The actual price of the good is lower, and the rest is tax.
Government jobs are suffocating economies across the globe. It's crowding out the private sector, and causing major economic hardship for regular people.
The global economy is toast. America is the glue that is holding the global economy together. Once America enters a recession, it's over.
The dollar is going up because other countries are printing money faster than the US can print money. It's impossible to keep the dollar low when every other country is even more reckless than the US.
Inflation isn't a solution to economic problems, it only makes things worse. America can't inflate away it's debt, it would cause an inflationary recession, AKA stagflation.
Everything the government says about the economy is a lie. That's why there are all of these huge revisions, and that's why the economy seems terrible to regular people.
Always remember that the government has been lying about inflation for decades. People are starting to realize that inflation is much worse than the official statistics, which will only make inflation worse. There has to be deflation, or runaway inflation will be inevitable. If the government tries to keep the bubble from popping, then there is absolutely no reason to have cash. Everything will flow into assets.
Your trust is in whiskey and weed and Slayer, it's goddamn electric!
Consumption taxes are sin taxes. Goods and services tax, and carbon tax, are the same as any other sin tax, and the sin is being poor. All pigouvian taxes are a tax on the poor.
But tariffs aren't like other consumption taxes. It is a tax on foreign goods, which is pro worker, and there are ways to avoid paying tariffs. There is no way to avoid consumption taxes.
The upcoming crash will be devastating for white collar workers, but it will also end the white collar-blue collar divide, and finally unite workers.