SLL does not share Quoth the Raven’s sanguine outlook about Trump’s tariffs, but we try occasionally to present the other side. From Quoth the Raven at zerohedge.com:
Submitted by QTR’s Fringe Finance
It has been one whole day since President Trump implemented his tariff agenda.
With the amount of squirming and outright panic in the news media, markets, and on social media, you’d think we were 50 years into a 100-year bout of famine, plague, depression, and pestilence.
Let’s all just gather our heads for a second.
At a very basic psychological level, people are opposed to change. It doesn’t matter whether it’s changing their cable provider or taking a detour in traffic. Extrapolating from this, people are really opposed to bigger, more consequential change.
Extrapolating from this, in the world of finance, I have consistently argued that market participants have been falsely conditioned by our monetary and fiscal policy in this country to always expect comfort and never expect interruptions from the market moving higher, or the quality of life status quo that we believe we are entitled to here in the United States to suffer.
This concept was the basis for my article explaining why I thought the next market crash would “break the brains” of market participants.
Now let’s zoom out and think about what President Trump is trying to accomplish with his tariff agenda. He is essentially saying that the status quo in the United States isn’t working and large changes need to be implemented—changes that will shock the global economy—to remedy the issue.
As always, the proof will be in the pudding.