It’s always good to go to Peter St. Onge, Ph.D. for some sanity when financial ups and downs frighten us.
As the market goes up and down, mostly down, he explains that the market doesn’t reflect all companies and certainly not companies that don’t yet exist.
The formula for the tariffs isn’t what people might think. Trump took the trade deficit divided by imports, cut that in half, and you get the tariff. Trump wants companies to come to the US. He doesn’t care how countries make up the deficit but wants it done. Companies that send us double or more the number of goods aren’t taking our goods.
The logic is that he wants manufacturing back in the United States. He doesn’t care if they export less to do it.
It looks like Trump is doing more than just using tariffs as a tool to get parity. He is looking to re-industrialize. For that, he needs to slash regulations and taxes. He is trying to get that done.
Tariffs will fail if we don’t make the regulatory and tax changes. DOGE is working on the regulations, but tax cuts are in the hands of the mostly useless Congress.
It’s a good time to buy! Definitely diversify in real estate or gold to weather the storms.
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He gives a version of reality that I did not know, and which all MSM & RINO networks were unable to do.
Anyhow, Reavill would be able to create an establishment drivel version of what is going on here. It could rival his “debt cannot cause a collapse” fable.
We just have to hope Congress doesn’t put a wrench into the works. They have the uncanny ability to make matters worse.
For far too long the Republican answer to everything economic was tax cuts and credit Reagan for an economic boom. But that leaves out other factors, namely the computer revolution. It gained steam under Carter but exploded under Reagan with computers the average person could use, along with business expansion. That industry created a great deal of wealth and without it I seriously doubt Reaganomics would have been so successful without it. AI may be the next expansion but one should ask, what will it lead to. Hopefully not as Oracle’s Ellison was envisioning, a possible dystopian future only seen in SciFi movies.