How the bond market spanked trump and caused his U turn

[Tommy Tainant]

Tommy Tainant are Tariffs offensive to Allah?

Who gives a ****. They are offensive to people trying to get on the housing ladder.
Those guys will not forgive the trump tariffs.

 

[Winston]

Fix the trade imbalance, bring manufacturing back to the US.

You may not agree with the goals, but they are out there.

Those goals reflect Trump's economic ignorance. Let's discuss them both. First, trade deficits.

Nothing, however, can be more absurd than this whole doctrine of the balance of trade, upon which, not only these restraints, but almost all the other regulations of commerce are founded. When two places trade with one another, this doctrine supposes that, if the balance be even, neither of them either loses or gains; but if it leans in any degree to one side, that one of them loses and the other gains in proportion to its declension from the exact equilibrium. Both suppositions are false.

An Inquiry into the Nature and Causes of the Wealth of Nations - Econlib

Adam Smith’s An Inquiry into the Nature and Causes of the Wealth of Nations was first published in 1776. This edition of Smith’s work is based on Edwin Cannan’s careful 1904 compilation (Methuen and Co., Ltd) of Smith’s fifth edition of the book (1789), the final edition in Smith’s lifetime...

www.econlib.org

That is Adam Smith speaking. I mean this is basic shit. Like Econ 101, or Macroeconomics 101. But you don't have to look at Adam Smith, for me, it is Xenephon.

Xenophon, Ways and Means, chapter 1, section 1

Sure, you have to have a little bit more than a basic understanding of Economics to get exposure to Xenephon, but his book, Ways and Means, was first published in 355. BC, damn near almost 2500 years ago. And it touches on everything from migrant workers--big surprise, Xenephon suggested having more. To a reserve currency like the current status of the dollar. Trump is doing his damnedest to eliminate migrant workers, kill the dollars status as the world's reserve currency, and handcuff this country with arbitrary, and quite honestly, false claims of a damn trade deficit.

For instance, when some Chinese coal baron spends several million dollars on one of Trump's overpriced condos in New York, does that count toward the trade deficit? Huh, NO. When the Saudi sovereign wealth fund, or hell, Indonesia's, invest billions of dollars in US equities, bonds, and businesses, does that effect the trade deficit. NO. Trump is claiming, I actually think he believes it, he is that damn ignorant, that if we have a trade deficit with a country, they are taking money from us. The reality is, that for decades, the net flow of money out of the country has always been equal, or lower, than the net flow of dollars into this country. I mean how do you think we got to be the most powerful country on earth?

But then there are those claimed manufacturing jobs. Boeing comes to mind immediately. Reciprocal tariffs will probably push AirBus to the market leader, I think they are in France. Expect massive layoffs from Boeing, high paying manufacturing jobs. Audi, big ass plant in Tennessee, probably going to shut down. Great cars, but with parts supplied from overseas tariffs are estimated to increase the cost of an Audi by over 50%, even ones made in the US. Look for that plant to close.

Those high-end manufacturing jobs will be lost, replaced by other manufacturing jobs, like making trash cans, t-shirts, and toys. And don't forget, furniture and hosiery mills, which don't pay jackshit. I mean it is not like we have not seen this before. Smoot-Hawley, 1930. Trump has bragged, it was beautiful, "tariffs" are his favorite word. Is he seeking a depression? I mean that is what happened. History tells us that GDP will DECLINE, it will GODDAMN DECLINE. Trump is a fool and anyone that supports his actions is even a bigger fool.

 

[Winston]

Who gives a ****. They are offensive to people trying to get on the housing ladder.
Those guys will not forgive the trump tariffs.

It is just beyond stupid, it really is. I mean is there anyone with even a lick of sense on Trump's staff. Oh wait, of course not. It would take a fool to actually work for that SOB. You have no autonomy; the only thing you can say is "Yes sir". **** that. Vance the damn poster child, what a flippin *****.

Come on, Trump ran on attacking inflation. You haven't even begun to see what is going to happen. The markets see it, the big banks see it, the brokerage firms see it, the dollar is tanking, the bond market is collapsing. I mean we are talking Treasuries here. The increasing cost of servicing this nation's debt is going to vastly eclipse any savings the South African racist piece of shit Musk can glean with his chainsaw.

 

[Tommy Tainant]

It is just beyond stupid, it really is. I mean is there anyone with even a lick of sense on Trump's staff. Oh wait, of course not. It would take a fool to actually work for that SOB. You have no autonomy; the only thing you can say is "Yes sir". **** that. Vance the damn poster child, what a flippin *****.

Come on, Trump ran on attacking inflation. You haven't even begun to see what is going to happen. The markets see it, the big banks see it, the brokerage firms see it, the dollar is tanking, the bond market is collapsing. I mean we are talking Treasuries here. The increasing cost of servicing this nation's debt is going to vastly eclipse any savings the South African racist piece of shit Musk can glean with his chainsaw.

But the dow was up a bit today. Nearly up to the levels of er last week.

 

[The Sage of Main Street]

What are bonds and why have they spooked Donald Trump?

The reason the US president had to back down on tariffs once investors started dumping treasury bonds

www.theguardian.com

It looks like it was the crash in the bond market and the sell off of govt debt that sobered up trump and caused his hasty retreat.

The same thing happened to crazy Liz truss during her short lived premiership.

It shows how tight the financial establishment has a hold on the government. I think most of us see that as a bad thing. But money talks.

bankers stopped seeing the US as a good bet and the price of govt paper crashed.

It certainly reduces trumps room for manouver.

Playing Chicken with Sissies in Suitcoats

Trump doesn't respond meekly to bullies. While they're still gloating over an illusion of conquest, Trump is planning his revenge. His friend Orban told tje German bankers to stuff it, and they backed down, like the Sissy Swastickers they are.

 

[Tommy Tainant]

Those goals reflect Trump's economic ignorance. Let's discuss them both. First, trade deficits.

Nothing, however, can be more absurd than this whole doctrine of the balance of trade, upon which, not only these restraints, but almost all the other regulations of commerce are founded. When two places trade with one another, this doctrine supposes that, if the balance be even, neither of them either loses or gains; but if it leans in any degree to one side, that one of them loses and the other gains in proportion to its declension from the exact equilibrium. Both suppositions are false.

An Inquiry into the Nature and Causes of the Wealth of Nations - Econlib

Adam Smith’s An Inquiry into the Nature and Causes of the Wealth of Nations was first published in 1776. This edition of Smith’s work is based on Edwin Cannan’s careful 1904 compilation (Methuen and Co., Ltd) of Smith’s fifth edition of the book (1789), the final edition in Smith’s lifetime...

www.econlib.org

That is Adam Smith speaking. I mean this is basic shit. Like Econ 101, or Macroeconomics 101. But you don't have to look at Adam Smith, for me, it is Xenephon.

Xenophon, Ways and Means, chapter 1, section 1

Sure, you have to have a little bit more than a basic understanding of Economics to get exposure to Xenephon, but his book, Ways and Means, was first published in 355. BC, damn near almost 2500 years ago. And it touches on everything from migrant workers--big surprise, Xenephon suggested having more. To a reserve currency like the current status of the dollar. Trump is doing his damnedest to eliminate migrant workers, kill the dollars status as the world's reserve currency, and handcuff this country with arbitrary, and quite honestly, false claims of a damn trade deficit.

For instance, when some Chinese coal baron spends several million dollars on one of Trump's overpriced condos in New York, does that count toward the trade deficit? Huh, NO. When the Saudi sovereign wealth fund, or hell, Indonesia's, invest billions of dollars in US equities, bonds, and businesses, does that effect the trade deficit. NO. Trump is claiming, I actually think he believes it, he is that damn ignorant, that if we have a trade deficit with a country, they are taking money from us. The reality is, that for decades, the net flow of money out of the country has always been equal, or lower, than the net flow of dollars into this country. I mean how do you think we got to be the most powerful country on earth?

But then there are those claimed manufacturing jobs. Boeing comes to mind immediately. Reciprocal tariffs will probably push AirBus to the market leader, I think they are in France. Expect massive layoffs from Boeing, high paying manufacturing jobs. Audi, big ass plant in Tennessee, probably going to shut down. Great cars, but with parts supplied from overseas tariffs are estimated to increase the cost of an Audi by over 50%, even ones made in the US. Look for that plant to close.

Those high-end manufacturing jobs will be lost, replaced by other manufacturing jobs, like making trash cans, t-shirts, and toys. And don't forget, furniture and hosiery mills, which don't pay jackshit. I mean it is not like we have not seen this before. Smoot-Hawley, 1930. Trump has bragged, it was beautiful, "tariffs" are his favorite word. Is he seeking a depression? I mean that is what happened. History tells us that GDP will DECLINE, it will GODDAMN DECLINE. Trump is a fool and anyone that supports his actions is even a bigger fool.

Magas arent going to read all of that. My brother works for aaerospace and they have plants all over europe as well as Alabama. They aint shifting anywhere especially when trump changes his mind every day. Nobody is

 

[CrusaderFrank]

Who gives a ****. They are offensive to people trying to get on the housing ladder.
Those guys will not forgive the trump tariffs.

The Islamists will not forgive Trump? Oh wait, they're guaranteed housing, even if a citizen must move

 

[CrusaderFrank]

The battlefield is our $2 Trillion annual deficit and $36T debt

 

[Tommy Tainant]

Over a month later and bond yields are on the up.
Trump lost the trade wars and is now begging China for a deal. Former allies are doing trade deals that dont include the US and maga morons are busy chewing their crayons again.