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9 Nines

1930s the return - markets hate uncertainty

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Most historians blame tariffs for the start of the Great Depression.  Well we got tariffs "trumped" by more tariffs and adding to that the uncertainty, which financial markets hate more than anything, of mad man where his rants change on a dime and you get.................................

 

 

Look at the 180 degree change within hours:

 

 

Trump Signals Regret Over China Trade War

 

“President Trump expressed a note of regret on Sunday that his trade war with China had spiraled into an international quagmire, answering ‘yes’ when a reporter asked if he had ‘second thoughts’ about his tactics,” the Washington Post reports.

 

“Asked if he was rethinking the way tensions had escalated between the two countries, Trump responded ‘Yeah, sure why not. Might as well. Might as well. I have second thoughts about everything.'”

 

“He also appeared to dramatically dial back his threat to force U.S. companies to stop doing business with China, something he had insisted he had the power to do despite international alarm.”

 

Later, Axios reports the White House walked back Trump’s comment: “The President was asked if he had ‘any second thought on escalating the trade war with China’. His answer has been greatly misinterpreted. President Trump responded in the affirmative – because he regrets not raising the tariffs higher.”

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It's extremely unlikely that Trump ever heard of the Smoot-Hawley tariffs. It's even more unlikely that Trump will mention it because Smoot and Hawley were republicans and their bill was signed by republican president Hoover who had promised tariffs during his election campaign.

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What matters in Main Street USA, which is driven by every day people. They are not making their livings off of the backs of the Chinese factories.

 

Main Street USA earns their livings off of their own  backs and support one another in creating a vibrant US economy.

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56 minutes ago, ctm said:

Here's what 4 small Main St. businesses think of the Trump tariffs.  I'm not reading positive reviews and they expose Trump's lie that China is paying for the tariffs.

 

https://www.cnbc.com/2019/08/24/china-is-not-paying-for-it-trumps-tariffs-hit-beer-brewers-and-book-publishers.html

The North American unit of my company has definitely paid significant $ in tariffs. Plus, there’s confusion, no one wants to own decisions (supply chain vs commercial vs finance) and with implications of repricing to our customers adding risk to our revenue budget, the blame game is coming. Even getting the data for complete analyses becomes problematic.  It’s a complete shitshow that takes everyone’s attention away from growth, product development, and core operations. 

 

Our person who’s handled this stuff for the last 20 years — nobody likes to do trade compliance — has never seen anything like this. She spends all day submitting, resubmitting exemptions and waivers to the government (slow response) and researching loopholes of varying complexity. Another underestimated impact is that many inbound raw materials lost their free trade zone status where tariffs were effectively near zero. Ex: instead tariffs increasing from 5 to 25%, we’re dealing with the full 0 to 25%.  

 

Everything associated with this shit Sucks Balls.

Edited by begooode

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29 minutes ago, begooode said:

The North American unit of my company has definitely paid significant $ in tariffs. Plus, there’s confusion, no one wants to own decisions (supply chain vs commercial vs finance) and with implications of repricing to our customers adding risk to our revenue budget, the blame game is coming. Even getting the data for complete analyses becomes problematic.  It’s a complete shitshow that takes everyone’s attention away from growth, product development, and core operations. 

 

Our person who’s handled this stuff for the last 20 years — nobody likes to do trade compliance — has never seen anything like this. She spends all day submitting, resubmitting exemptions and waivers to the government (slow response) and researching loopholes of varying complexity. Another underestimated impact is that many inbound raw materials lost their free trade zone status where tariffs were effectively near zero. Ex: instead tariffs increasing from 5 to 25%, we’re dealing with the full 0 to 25%.  

 

Everything associated with this shit Sucks Balls.

Many a decade, longer than the lifespan of many posters here, were spent developing the huge web across the globe we call a supply chain.  It is its own entity now that it is so ingrained into the global system.   Trump, an idiot by any rational definition, is improperly using the laws of the major trading nation of that system to break that system and the co-equal branch of government is sitting on their hands - mainly Republican Senate. 

 

What are the chances this will end well, especially considering the long term interest of the nations, that Trump, in his zero-sum mind, think are the enemies, would benefit from it being shaken lose because when re-built they are likely going to be the center of it instead of the US. 

 

Perhaps when rebuilt, the Tuxedos of the world will get their wish - instead of consuming products they can just make the lesser products and let other nations' people enjoy them while making new energy products and other high value processes and instruments to sell for greater wealth for themselves. 

Edited by 9 Nines

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1 hour ago, Starkiller said:

The whole thing is a giant clusterfuck that all signs say is leading to a recession

Economic policy can sometimes have a long lead time before the effects are felt.  But it feels like things are accelerating as this thing rolls downhill with no end in sight.

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53 minutes ago, ctm said:

Economic policy can sometimes have a long lead time before the effects are felt.  But it feels like things are accelerating as this thing rolls downhill with no end in sight.

I think I heard a report that Capital Spending was already being cut before any of this. 

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2 minutes ago, 9 Nines said:

I think I heard a report that Capital Spending was already being cut before any of this. 

Impossible!  We were promised that the yuge corporate tax cut would stimulate capital investment domestically. Remember when all those business leaders enthusiastically raised their hands when asked this very same question?

yeah, me neither.

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This is about the 16th sky is falling economic thread started by this asshole piece of shit poster. 

 

He hates the people in this country and wants them to suffer so some shit-clown can get elected in 2020. 

 

The DNC put out the orders to the pretend media to use the word recession a million times on their shows. Keep pounding that word and you might convince enough people to stop buying things.  

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The average unemployment rate from 1933-1940 while FDR was president was 18.5%. Thank goodness for WW2 eh? Thanks Hitler and Tojo for saving our economy. 

 

FYI the Vanguard total stock market index fund is up 17.99% year to date. Yep the markets really suck ass they don't they?

 

Just admit you hate this country and want it to be destroyed. Admit it and then move to some other place. 

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On ‎8‎/‎25‎/‎2019 at 1:30 PM, Starkiller said:

The whole thing is a giant clusterfuck that all signs say is leading to a recession

 

So says all your libtard news sources.   Of course the Federal Reserve says no recession expected.  

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