Why Trump's tariff chaos makes sense (big picture)

https://www.moneymacro.rocks/2025-04-03-Trump-plan/

by walterbell • 1 year ago

7 16 1 year ago

I love how we're back to oracles interpreting sheep's entrails again. Goes to show how unilateral this all is when nobody knows what is going on. Do yourself a favor and stop trying to make sense of any of it. It doesn't.

wraaath4• 1 year ago

I wonder what the over/under is on the number of banks that will fail in the next 7 days and whether it will precipitate into a contagion vector.

mytailorisrich4• 1 year ago

Why would banks fail in the next 7 days?

xenospn• 1 year ago

Why do CONSERVATIVE journalists always use CAPS LOCK to try and get their POINT ACROSS like children?

watwut3• 1 year ago

It makes it harder to read while make parts of text feel IMPORTANT. The combination makes their regular readers feel like IMPORTANT stuff was being said while making it slightly harder to notice that it was not.

amarcheschi• 1 year ago

“he uses it for negotiating”

My second piece of evidence to suggest the current chaos is temporary is that before being part of the administration, Miran said that the Dollar policies that he proposed would likely be.

“Miran: pursued later in an Administration after tariffs had produced the sufficient negotiating leverage”

So both Miran and Bessent are essentially telling us that the current Tariff chaos is just about creating leverage that can be used when implementing the rest of the plan.

Ok, just a few minutes ago trump said: Trump: "I spoke to a lot of leaders -- European, Asian, from all over the world. They are dying to make a deal, but I said 'we're not gonna have deficits with your country' ... to me a deficit is a loss. We're gonna have surpluses or at worst we're gonna be breaking even."

I don't see any way he wants to actually use the leverage he "created"

Yesterday peter navarro also said, i'm copying a tweet: Peter Navarro responds to Vietnam’s offer to remove all tariffs: “This is not a negotiation. This is a national emergency based on a trade deficit that’s gotten out of control because of cheating,” Trump’s trade adviser says on Fox News. “Don’t say you want to lower the tariffs and be done with it. It’s the non-tariff cheating. Stop manipulating your currencies. Stop dumping stuff in.” [1]

[1] https://x.com/LucasFoxNews/status/1908900999449763931

mytailorisrich4• 1 year ago

Pascal Lammy (former WTO head and former EU commissioner) described Trump bluntly but perhaps not far from the truth in response to the new tariffs:

"“I think Mr Trump learned to do business in the New York mafia-influenced real estate market and that his tactics are based on extortion – you hit and keep hitting for as long as you do not get a good price for stopping."

jqpabc123• 1 year ago

Why Trump's tariff chaos makes sense --- for China.

Once the US restricts trade with most of the world, who are they going to align themselves with?

Tearing down economic and military alliances that took a generation to build will only result in an isolated, poorer, weaker, less relevant America. And it is entirely self inflicted.

Perfect opportunity for China to become the world's dominate super power. They are the most likely winner, everyone else loses.

mytailorisrich4• 1 year ago

China has already announced that from 1st December they will abolish tariffs on imports from the 43 poorest countries.

It probably does not represent that much trade at the moment but it is very good PR at this time, and in the longer term it means that those countries will develop by growing links with China, not the US.

red-iron-pine• 1 year ago

I hate how there is a continued "good faith" assumption in Trump's behavior.

We know Project 2025 is a thing and we know their goals.

We know his ties to Putin, and his playbook for dismantling Western Hegemony (e.g. Foundations of Geopolitics by Dugin)

We know his ties to billionaires who are in favor of collapsing US intuitions in order to take over (e.g. Peter Thiel, Curtis Yarvin, and the "Dark Enlightenment" -- and the VP of the US, Vance, is Thiel's desciple)

Stop pretending there is 4D chess. He's an old man with dementia and profound narcissism being used by other power-players to achieve their goals. Everything else is window dressing.

Why Trump's tariff chaos makes sense (big picture)

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