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Tariffs Bring Wealth - A Blatant Lie

Tariffs Will Buy Agricultural Goods - WTF?

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Trump's Proposal in Two Sentences

  1. For starters, tariffs are a tax on consumers.
  2. Thus, the bottom line of this idiocy is Trump proposes taxing US citizens to send free food to poor and starving countries.

US Lost $500 Billion - A Lie

  1. The US most assuredly has not lost $500 billion. US buyers received goods and services in return for dollars the Fed continues to debase.
  2. If China is indeed selling goods below cost, it is a subsidy, thus a gain to US buyers.

Aid for Farmers

The Wall Street Journal reports With Trade Deal in Jeopardy, Trump Pledges Aid to Farmers

With a U.S.-China trade deal in danger of collapse, the Trump administration said it will begin work on a new program to provide aid to farmers—sending a signal to Beijing that Washington is preparing for a prolonged conflict.

Farm sales and incomes have slumped during the continued trade tensions with China, and new tariffs imposed Friday raise the prospect of more hardship ahead.

As negotiators for the U.S. and China continued talks Friday, Mr. Trump said on Twitter that the U.S. could use tariff revenue to buy “agricultural products from our Great Farmers, in larger amounts than China ever did, and ship it to poor & starving countries in the form of humanitarian assistance.”

Prolonged Trade War

Here's the the subtitle of that WSJ article: Administration signals it is ready for a prolonged standoff as new tariffs on China take hold.

That's a bit ironic given the following Tweet from today.

Negotiations Going Well - Might Conclude This Week

Hey, We are Really Close

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RECOMMENDED ARTICLES

Beautiful Letter

Let's not forget yesterday's beautiful letter: Trump says he has received 'beautiful' letter from China's Xi.

Once again, we are close, really, really close. We are so close that Trump is ready for a prolonged standoff.

Don't worry, there will be money left over after we send free food to the world.

Message Not Heard

On April 29, Chuck Grassley, a Republican Senator from Iowa warns Trump over tariffs.

In reference to USMCA (Trump's NAFTA replacement) Senator Grassley warned "Trump’s Tariffs End or His Trade Deal Dies".

Grassley concern is the devastating impact Trump's tariffs have had on US agriculture.

Trump believes the tariffs will pay for themselves and then some.

Money Left Over

If there will be money left over, why bother with deal?

Economic Illiteracy

Dear president Trump. You are an economic illiterate. I suggest some light reading.

Reading List

  1. Economics for Real People by Gene Callahan
  2. Economics in One Lesson by Henry Hazlitt
  3. What Has Government Done With Our Money? by Murray N. Rothbard
  4. Case Against the Fed: Murray N. Rothbard
  5. Tomorrow’s Gold Marc Faber
  6. Capitalism For Kids: Growing Up To Be Your Own Boss by Carl Hess
  7. Debunking Modern Monetary Theory (MMT) & Understanding it First by Erik Zimerman
  8. An Introduction to Austrian Economics by Thomas C. Taylor

Items two, three, four, and eight are free downloads at mises.org. Item seven is a free website article.

Where should Trump Start?

This is easy. Trump should start with number 6: Capitalism for Kids.

That's the correct level for him to pick up some essential basics.

Mike "Mish" Shedlock