The letter, organized by the conservative-leaning National Taxpayers Union, warned that recent tariffs and trade protectionism were harmful to the US economy. The economists cited a 1930 letter that warned Congress against passing the Smoot-Hawley Act, a large package of tariffs that many studies cite as a major reason for the depth of the Great Depression."
I still have mixed feelings and hope he just gets a better deal with our trade partners. We will see.....
Except for government interference, the Great Depression would not have been so great. Our history has been scrubbed so many times that reality is hard to come by. This country used to suffer from a much more volatile economy so there is plenty of historical examples. For instance, there was an equally bad depression in 1920 which the government did nothing about and it corrected itself in less than 18 months.
Let the free market work without all the idiot politicians trying to control things and, yes, on the small scale, we will have more corrections, but overall we will have a more stable economy without being forced to carry buggy whip manufacturers into the 22nd century, if you will.
Will we have another one? As sure as it will rain somewhere today...particularly at the debt levels we see today. And not just federal debt. Personal debt is way up (mostly credit card and student loans), corporate debt is way up (bond issues and just plain old borrowing)...Some people think the next down turn will occur when the bond markets wake up and start treating a lot of corporate as junk, which a lot of it is.
Upward movements in long term interest rates will bankrupt some of these over extended companies because they cannot pay back the debt they have today at current rates and with higher interest rates appearing to be on the way, they won't be able to refinance today's debt at lower rates.
Downturns in the markets are a natural process of capitalism. The down turns are supposed to be used to flush out the weak hands. Instead the powers that be have been propping up the weak hands and letting them continue to go further and further in debt. The problem is, unlike the Federal Government, these weak companies cannot print their own money or influence interest rates. Market forces will eventually catch up to them...JMO
You can hedge, buy/sell or rotate your investment allocation when the market is over sold...or vice versa. Before the "buy and hold' crowd blasts that strategy....I'm not talking go all in...then sell everything at the perceived peak.
There are happy mediums where you may not always outperform but you protect a significant amount of your assets from a huge drop.
BINGO!!! My property lost A ****ING THIRD of it's worth, my business and most all the other in my industry shrunk, and the foreclosure rates of people who for DECADES had no trouble paying their mortgage skyrocketed. In a way it was a blessing that my dad passed away 8 years ago so he didn't have to live through TWO depressions!
WASHINGTON (AP) — Record exports trimmed the U.S. trade deficit in March, the first drop in seven months in a massive gap that President Donald Trump is determined to shrink with an aggressive America first policy.
The Commerce Department says the trade deficit — the difference between what America sells and what it buys in foreign markets — slid to $49 billion, down from $57.7 billion in February and lowest since September.
Trump has vowed to bring down America’s massive deficits, which he blames on bad trade agreements and abusive practices by U.S. trading partners.
Exports rose in March to a record $208.5 billion, led by shipments of civilian aircraft and soybeans. Imports slipped 1.8 percent to $257.5 billion.
The United States ran a $20.5 billion surplus in the trade of services such as education and banking. But that was offset by a $69.5 billion deficit in the trade of goods.
Top administration officials are visiting Beijing this week for talks aimed at reducing America’s huge trade deficit in goods with China, which fell 11.6 percent in March to $25.9 billion. Trump is threatening to slap tariffs on up to $150 billion in Chinese products, and the Chinese have targeted $50 billion in U.S. products, including soybeans and small aircraft.
The administration is also seeking to renegotiate the North American Free Trade Agreement with Mexico and Canada, and has slapped tariffs on imported steel and aluminum.
Despite the reduction in March, the trade gap is up 18.5 percent to $163.4 billion so far this year.
The president views trade deficits as a sign of economic weakness that can be brought down by more aggressive trade policies. Most economists say they are caused by bigger economic forces, mainly the fact that the United States consistently spends more than it produces.
The trade gap has continued to rise since Trump entered the White House partly because the U.S. economy is strong and American consumers have an appetite for imported products and the confidence and financial wherewithal to buy them.
But this one really made me spit out my bourbon. “The nation was poised for a great recovery before OBOZO was elected...”.
Dude, we were losing over 200,000 jobs a month and hundreds of thousands of homes were going into foreclosure per month. Banks were about to shut their doors and all 3 car companies were about to go under. And do you think that would’ve solved itself? At least be a man and admit Obama stopped the bleeding. Hate him all you want but don’t be factually incorrect for the sake of a few pats on the back from some yahoos. You’re better than that.
You must have been looking in a mirror when you typed this! You are ****ing nuts.....really. Get some help.
MT in MO's Link
What's your opinion of the recent tax cuts regarding the national debt?
Wont I love it when Obama and all his cronies end up in pink jump suits picking up trash along the highway for Joe Arpaio.
He admits to presiding over one of the biggest booms in history; the internet revolution. made his job real easy with money flooding in....though he left out that part. In fact the speech I saw he emphasized finding the "Next Internet" boom.
I think its funny how almost all of these politicians think. They never want to run a tight ship....just always looking to spend money on something.
I also think its funny that so many polarized citizens get bogged down in Trump debate when Congress is the real problem.
I might have to take a road trip.
Financial markets are essentially betting parlors. Mohamed El Erian is considered to be one of the better, perhaps currently the best/most influential, financial market analysts in the world. What El Erian outlines is something we have discussed at great length.
“When people realize that at the end of the day, the U.S. will prevail, because [China] is a less open economy, because [the U.S.] is a more dynamic economy, that ultimately you may end up in a situation where the U.S.’ position in global economic terms is better off.”
The multinationals (corporations and financial entities) don’t like President Trump; nor do they like any politician who expresses economic nationalism – with the exception of Chinese President Xi Jinping, whom they had been using as the fulcrum for their investment betting on the U.S. as following a service-driven economic model.
Trump has crushed that fulcrum. The economic globe is in a state of flux while it resets to the natural fulcrum with the U.S. as the centerpiece. Previously we have explained the dynamic of this flux-time as the space between two economic engines. Only President Trump could pull off this reset… his plans therein were assembled over decades.
Ultimately capital investment follows the pathway to the strongest and most consistent return. It is the natural order of finance for money to flow to toward strength. President Trump, and the dynamic economic team carrying out the America-first economic agenda, knows this truism will remain the one constant in an ever changing universe.
That’s why team Trump don’t worry about downside market fluctuations, outside of trying to remove talking points from the media narrative engineers. The team knows ultimately the money will flow toward the MAGAnomic result; a more ‘balanced’ U.S. economy.
Enhanced MAGAnomic policy to support a manufacturing and production base only increases the balance within the U.S. economy. Balance equals stability. Balance eliminates wealth disparity. Balance supports the middle-class of the economy. A strong middle-class equals a strong country.
With a strong country the influence of the U.S. increases. Global security is a downstream benefit from U.S. strength. Ultimately, at the 30,000 foot level, that’s why those who plan to benefit from global instability always need to focus on weakening the U.S.
Few people ever discuss the motives behind President Trump in this regard. Why give up the extraordinary indulgences afforded from a life of wealth accumulation? Why walk into the hardest task ever?… Think about it.
“Well, I don’t really have to do any holding together, now that I figured out what Trump is up to. He is shaking things out, but counting on Trump gravity to pull things back together as he moves along.
He is moving “forward” at speeds Obama could not even dream of.
You and I will be anti-Trump trolls one day and MAGA heroes the next. Get used to it. Trump speed is the new normal. Some will call it flip-flopping, but that’s not what it is. Trump is dodging and weaving through reality faster than the reality can react to disrupt his plans.
I was explaining this to my wife. This is a roller-coaster now. Trump is no longer waiting for people to keep up. He is taking his bewildering art-of-the-deal campaign schtick into geopolitics, and for a lot of people who can’t keep up or hold on, it will be a rough ride.
Trump is no longer playing only with evil and cunning players who are still predictable, easily beatable dopes, like Hillary. He is playing against killers, with his own team of killers, and all the while he has scheming creeps like Hillary, BGI, SPLC, and the neocons gunning for him. Snake Ryan ready to bite when nobody is looking. “Warhead” McCain screaming for Russian blood. Psycho Kim and Samoa Obama plotting some kind of intrigue to take him down. And THOSE are the lightweights.
This is the majors now. Trump has to outwit world-class adversaries and “frenemies” by defining the deals that they will agree to. One minute they will think Trump is their friend – the next minute, a cunning, bitter foe.
And he has to do this with evil cheerleaders like Warhead, Linderace, Dipsy Dowd, Maggie Haterman, and Fake Yapper trashing him or praising him alternately, no matter which way he goes. They can’t keep up, either.
Neither can many around him. I think that half of the problem with advisers crashing into each other is they don’t realize what Trump is doing.
And people will trash you, and they will trash me. Get used to it. I’ve already caught plenty of people mocking me. Well, just wait a week in Trump time. Look stupid and conned by Trump one minute, and you look like a sage three days later.
Trump will not find perfect solutions. He will find OPTIMAL solutions. We cannot ask for more. Trump has stood by and watched Perfect murder Good for 8 years – maybe longer. He’s not gonna do it. He’s going to deliver the best outcome possible, and he’s not waiting for us to feel relaxed about it.
Best presidency ever! Just hang on. More winning is coming, but a lot of people are going to scream that it’s all over at EVERY turn.
The best way through this is to define viewpoints, not people, because people will shift as they change position and velocity in Trump gravity. Bash the neocon, warmonger, and dopey globalist positions – not the people who are going to hold them one moment and come loose from them later.
Trump is Jupiter moving through the asteroid belt. He is going to pull people into his orbit. A few will get slung off into space, but most will come along for the ride of their lives.
I am ON the Trump Train for good, even if I scream that I want off and can’t take it.
In the end, I only want to scream “TOO MUCH WINNING!!!”
Having said that, I can't help but ask what a "muzzy swine" like El Eriam could possibly know about the American economy, and even if he did, why should we trust him? How do we know that he's not just engaging in "Taqiyya," and this isn't all just an elaborate plot to make America fail so the "goat humpers" can complete the caliphate, implement Sharia law, and make the entire country a "no-go zone?"
It feels to me, like the evolution in business types and possibilities may change how it impacts people. For example, if you work on one type of business or in a specific region, a new depression or recession could hurt you more than someone in another region or line of work. If you work in an industry that's teetering on extinction or marginalization, you are likely in more trouble than some one who does not.
Sure hope we dont have one... That's not something any of us need.
What does the wall have to do with a depression? Nothing. The cost of building the wall is less than 1% of the budget and the budget has little to do with a potential depression. Any other brilliant ideas? I didn't think so...
There is no question that we will have another big depression. You can't last with the wild tax n spend our gov has been doing for decades. The Federal Reserve needs to be demolished. It may not be easy but it's simple. ..get the gov out of our pocket books and our lives and the economy will take care of itself. Both parties have done a great job at hurting the economy in their own way.
Got to live hard to be hard. Snowflakes will be hit hard if we are!