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Trump's Tariffs Wipe Out over $6T on Wall Street in Epic Two-Day Rout

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Re: Trump's Tariffs Wipe Out over $6T on Wall Street in Epic Two-Day Rout

#181

Post by bgnn »

sorcerer-mar wrote: post #114
walterbell wrote: post #23

2024 paper (40 pages) by Stephen Miran, current chair of the Council of Economic Advisers, which has influenced tariff policy, https://www.hudsonbaycapital.com/documents/FG/hudsonbay/rese... The root of the economic imbalances lies in persistent dollar overvaluation that prevents the balancing of international trade, and this overvaluation is driven by inelastic demand for reserve assets. As global GDP grows, it beco…

> Why must a country run a trade deficit to retain its global reserve currency status? Because when your currency is the global reserve currency, the entire world constantly hungers for it in order to use it in all the various countries’ international trade between each other. The only way to keep those countries constantly supplied with dollars is for Americans to buy tons of foreign imports, which effectively sends…

Yes, abd this appreciates USD, in turn makes production costs in US high, so the rest of the world doesn't buy what US produces.

It is by itself sustainable though as US doesn't only export produced goods but tech etc which the world wants. A valuable dollar funds this tech, in a sense whole world funds the US trch sector.

Re: Trump's Tariffs Wipe Out over $6T on Wall Street in Epic Two-Day Rout

#182

Post by donnachangstein »

lunarboy wrote: post #148
itake wrote: post #115

Earlier quoted context omitted.

China is isolationist and they seem to be growing. The problem is the USA is a consumer economy which isn’t sustainable. We could get away with it as a tech leader, but with China stepping ahead (Deepseek) china will be a tech leader and manufacturing leader. What will the USA have?

In what plane of reality is China isolationist

Do you think walling their population off from the Internet doesn't qualify?

Re: Trump's Tariffs Wipe Out over $6T on Wall Street in Epic Two-Day Rout

#183

Post by markus_zhang »

Whatever, I'm in Canada and decided to cut down all costs. Fully expecting a recession as well as a depression.

We thought about getting a new car, but not going to do that until in a few years when car sellers are begging me to take one. Right now they are so arrogant that they charge high rates and popular cars takes months to deliver. I'm gonna sit for another 3-4 years.

Also decided to remove all travel plans from the near future. Purchases higher than $100 are going to require a stamp from the financial department ($wifie). All purchases re-directed to local second hand market as mu as possible. Thought about buying a MacBook for RE but to hell with it. No new phones, no nothing until something breaks and evaluated by the financial department to be "essential".

Fuck it. I just got a small raise and bonus but feel so insecure. I expect to lose job at any moment.

Re: Trump's Tariffs Wipe Out over $6T on Wall Street in Epic Two-Day Rout

#184

Post by gonzo41 »

owebmaster wrote: post #161
toddmorey wrote: post #74

Earlier quoted context omitted.

Very well put. Alliances take years to build but can be broken in just days. I'm tempted to think (hope? dream?) that the markets and trade will rebound if all this chaos makes American politics swing back towards an interest in global stability, but I think anyone partnering with the US would do so VERY carefully and right now the entire world is plotting how to remove US dependencies.

> I'm tempted to think (hope? dream?) that the markets and trade will rebound if all this chaos makes American politics swing back The pump'n'dump scheme against Ukraine will forever change how small countries see the US support for democracy, even if it changes back to the previous status-quo.

The US treatment of Ukraine is having a massive impact on how everyone thinks about security.

All the US had to do was supply it's old weapons to Ukraine whilst replenishing it's stock (creating jobs in America) and things would have been fine. Now we're all in a world were Europeans are openly talking about developing nuclear weapons. Taiwan is totally on it's own, and Greenland is worried about being annexed.

There's real trouble coming.

Re: Trump's Tariffs Wipe Out over $6T on Wall Street in Epic Two-Day Rout

#185

Post by loudmax »

popalchemist wrote: post #85
lreeves wrote: post #10

You know the craziest thing about watching this as an outsider in Canada is that we as a nation are losing one reliable trading partner (and obviously losing an ally but that's another conversation). Germany - losing a trade partner. Japan? And so on. But the US has lost 180 reliable trading partners. You're already seeing in the first week burgeoning trade alliances between nations who wouldn't have cooperated befor…

In the case of Trump, never attribute to ineptitude what can be explained by greed. He is tanking the US economy so he and his billionaire cohort can buy things (businesses, real estate, stocks, etc) at a low price. Thus amassing more control and capital. This is how the Russian oligarchy came into power.

Trump's businesses have repeatedly declared bankruptcy. Don't rule out ineptitude.

Re: Trump's Tariffs Wipe Out over $6T on Wall Street in Epic Two-Day Rout

#186

Post by decimalenough »

itake wrote: post #115
lreeves wrote: post #10

You know the craziest thing about watching this as an outsider in Canada is that we as a nation are losing one reliable trading partner (and obviously losing an ally but that's another conversation). Germany - losing a trade partner. Japan? And so on. But the US has lost 180 reliable trading partners. You're already seeing in the first week burgeoning trade alliances between nations who wouldn't have cooperated befor…

China is isolationist and they seem to be growing. The problem is the USA is a consumer economy which isn’t sustainable. We could get away with it as a tech leader, but with China stepping ahead (Deepseek) china will be a tech leader and manufacturing leader. What will the USA have?

China is very far from isolationist. They're making huge investments into other countries with Belt & Road, importing huge amounts of commodities, exporting huge amounts of finished goods. Sure, the domestic market is protected, but it's a long way from North Korean autarky, which seems to be Trump's goal.

Re: Trump's Tariffs Wipe Out over $6T on Wall Street in Epic Two-Day Rout

#187

Post by OJFord »

Gregaros wrote: post #98
OJFord wrote: post #72

Earlier quoted context omitted.

> Hopefully for the US they won't go in a similar crisis like the UK is going through... Err.. do tell about the UK's larger crisis than US'?

I’ve been seeing people call this GEXIT, or global exit.

As a comparison to Brexit? At what point even momentarily was that in a worse situation, nevermind as an ongoing matter?

Re: Trump's Tariffs Wipe Out over $6T on Wall Street in Epic Two-Day Rout

#188

Post by JackYoustra »

inatreecrown2 wrote: post #160

Isn't it obvious that Trump's goal are not these tariffs, but renegotiated trading agreements? But everybody just seems to love to proclaim this the end of US.

How is that obvious? Why would your 'negotiating stance' be 'give no demands and tariff the entire world, including islands with just penguins, a nonsensical rate?'

I mean sure I guess you can say he's negotiating, in which case I'd like you to admit he's a terrible negotiator.

Re: Trump's Tariffs Wipe Out over $6T on Wall Street in Epic Two-Day Rout

#189

Post by SJMG »

VirusNewbie wrote: post #126
lenerdenator wrote: post #4

I was looking at used cars on Carmax about two or three weeks ago. I looked again today. They're another $1-2k. This is the shareholder/political class trying to eat their cake and have it too. Pay people a stagnant wage for 40 years while taking most of the surplus value and dedicating it to equities, then pretend to do something about it, but in a way that passes the buck to the people who have been making a stagna…

Are you claiming that the 'shareholder class' would rather depress the economy and wipe out trillions in shareholder value...over inflating the economy and lowering interest rates?

That is what I believe I also just read... I was just telling my girlfriend that Hackernews is the smarter, tech oriented reddit. Better go fix that.

Re: Trump's Tariffs Wipe Out over $6T on Wall Street in Epic Two-Day Rout

#190

Post by alphabettsy »

ViktorRay wrote: post #49
fulladder wrote: post #16

Earlier quoted context omitted.

The belief of Trump and his allies is that the last 40 years of free trade has been extremely favorable to college educated "elites" and extremely unfavorable to the working class. They see foreign trade as having hollowed out American manufacturing, and therefore they see the shutting down foreign trade as a way to reverse this decline. While they are aware that doing so will hurt college educated professionals, the…

But these beliefs have been core to the American left for decades. Even left wing intellectuals like Noam Chomsky have attacked the neoliberal trade agreements I think. Trump’s populist right wing fans have adopted traditionally left wing views. What’s surprising is so many left wing people are supportive of free trade when they were against free trade during the Reagan era.

I’m not sure what your sources are but if Bernie Sanders is the left, then he’s been saying the same thing for a long time and continues to. Maybe there’s some nuance to it?

2025 https://www.sanders.senate.gov/press-releases/news-sanders-s...

2011 https://www.sanders.senate.gov/press-releases/senate-speech-...

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