Debt monetization forces up inflation and interest rates; tariffs zap consumer incomes and prompt a recession. Sounds like a recipe for economic disaster. From Alasdair Macleod at alasdairmacleod.substack.com:
In this article I look at the inflationary consequences for the dollar of Trump’s proposed tariffs. Hint: it’s not good!
Last week, I explained why I thought that the economic policies of Trump/Bessent 2025 would fail. The assumption is that they would pursue MAGA (make America great again) by tax policies favourable to businesses while protecting their markets through tariffs. Both Trump and his nominee for Treasury Secretary have promised to cut corporation and income taxes and to raise revenue instead through tariffs —“the most beautiful word”. And DOGE (a new Department of Government Efficiency headed by Elon Musk and Vivek Ramaswamy) would cut out wasteful spending to the tune of $2 trillion.
As Dr Johnson said of second marriages, DOGE represents the triumph of hope over experience. And it won’t be the first time that brilliant businessmen such as Musk have been bested by government bureaucracy. Either they knuckle under into a thoroughly bureaucratic environment, in which case their attempts to reduce wasteful spending fail, or they face ignominious defeat and resignation. Whichever way, the cuts in spending are not going to materialise to any degree, and the revenue shift from corporate and income taxes to tariffs will be attempted against a background of a rapidly tightening Federal debt trap, making funding the budget deficit increasingly difficult.
Bubbles accumulate and eventually pop
Since 1981, I have counted six debt bubbles or crunches: two in the ‘eighties, one in the ‘nineties, the dotcom in 2000, the securitisation crisis of 2008, and the repo crisis in 2019. From the first of these forty years ago, all these events have been addressed by the Fed collapsing interest rates to progressively lower levels, a policy which has prevented each bubble from having been resolved — kicking the can down the road. Instead, they have been rolled up into the following one, ensuring that it becomes more potentially catastrophic. And each successive cut in interest rates took them lower, ending with zero in 2020.
Listened to a lefty comrade state in simple terms that it will become tit for tat, they will enforce tariffs as well in the two can play game.
Emmanuel Trumpstein will be the scapegoat of the Polycrisis in the culmination of the ten years hate?
It’s not like he wasn’t the globalist MIGA guy all along and get ready for 2030 to get rolled out everywhere.
LOL earlier over some commenter doubts about Kash due to his ethnic background, topics you couldn’t even discuss not too long ago.
This just in from Destroy All Monsters:
Meet The Creeper (1979)