It's impossible for anyone to believe that President Trump wants to crash the stock market (PART ONE)

  


Does anyone really believe that President Trump wants to crash the stock market? Or is the goal to benefit consumers, benefit citizens, and relieve some of the monetary laughing gas that has made the entire middle class much worse off? Let's talk about all of this because it's time to buy, it's time to invest, or it's time to panic. Let's analyze it.

In an article I published in the United States, in Zero Age, I explained that when these Keynesian economists tell you that a disaster is coming, that it's time to buy, and when these Keynesian economists tell you that the economy is doing great, like the Champions League of the economy, that there's no risk, etc., that's when you should run. Let's look at some factors; I think the message is pretty clear at this point.

If you want to come to the table and negotiate the future of trade with the United States, then I think the president and his team are definitely open to doing that. But if you want to retaliate against Saber Rattle, then the president is more than willing to continue down the path of tariff policy. Donald Trump explains it perfectly.

 If you want to negotiate, negotiate, sit at the table, and we'll reach agreements that are positive for everyone, that are positive for businesses around the world, and also for businesses in the United States. Now, if what you want is to draw your sword and get really cocky, like China is doing, don't worry, there will be bigger tariffs. If you want to negotiate, negotiate, sit at the table, and we'll reach agreements that are positive for everyone, that are positive for businesses in the United States.

The system has worked for 30-40 years, allowing the United States to receive cheaper products, more quality products, and that benefited everyone. When did it start to get worse? When inflation, government spending, the constant creation of barriers to global trade, etc., went off track, when it began to destroy the United States' position and protect or raise barriers to the position of other countries, that is, the United States stopped benefiting from cheaper products, the United States stopped benefiting from a trading system that has sunk its industrial sector and, at the same time, worsened its position, not to mention the second derivative, in which many countries have used those dollars to destroy the United States' position. Another element that seems important to me. Indeed, Bloomberg reports that there are more than 70 countries willing to negotiate and reach agreements that are positive for everyone regarding tariffs.

 But that's not the case with China. And that (4:19) is where the Trump administration won't offer any remedies. That's where the highest tariffs will be imposed. Especially when China has a gigantic trade surplus with the United States. It also uses that to undermine the United States' position in the world, financing regimes that want to destroy not only the Western system, but the American economy as well. So, that's a key factor.

When Keynesians predict disaster, it's time to buy. I always like it when I see a market correction and then the entire Keynesian consensus appears, predicting disaster. The same people who said that massively increasing the amount of money and increasing government spending wouldn't create inflation now know perfectly well the impact of tariffs on inflation.

What's going on? What we have is a whole chain of worries on the part of some economists. What they've always done is err on the side of governments: More government spending. More debt. More money printing. Central banks creating an economy that has destroyed the middle class. /D. LACALLE

Previous Post Next Post