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Friday, 02 March 2018


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"What followed immediately after the tariffs were announced was a 30% plunge in the S&P 500, a slump in the dollar and a rally in bonds that slashed 10Y yields in half."

Which, of course, is exactly what Trump wants and intends.

The peeps that voted for him don't have diversified portfolios of stocks and shares, so they don't give a toss about the S&P 500. Tick.

A falling dollar will help US exports and force up the price of imports. More jobs for Americans. Tick.

And if the bond yields fall, all that borrowing he's just done to fund the tax cuts won't cost any more in total interest than the US Gov is already paying, maybe even less. Tick.

The ill effects of protectionism are long term. So that'll be Trump's successor, probably a democrat, left carrying the baby. Extra tick.

Pretty smart, really.


Smart tariffs are a tricky thing, especially if they are large and targeted as these are. I don't know how far Trump or Wilbur Ross have thought into the knock on side effects of tariffs, but I know Messrs Smoot and Hawley have not been consulted.

Whitewall, the propoganda we got in the UK from Trump was that the USA had in the past lost thousands of jobs due to trade deals that were to the benefit of others. If this is the case does Trump have genuine evidence to support his case. He is after all duty bound to support USA workers and the USA economy.


Not bad. The White House is in need of a communications director. You should apply for the job.

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