Friday, April 6, 2018

President Trump Just Indicated He is Going to Go Tariff Crazy Even If It Crashes the Stock Market

Just moments ago, speaking on WABC Radio's “Bernie & Sid in the Morning’’ program, President Trump said that U.S. markets could face some “pain’’ from the trade standoff with China.

"We have to do things that other people wouldn’t do. So we may take a hit, but you know what, ultimately we’re going to be much stronger for it,’’ Trump said.  “It’s something we had to do, and ultimately if you take a look it’s not only trade with China - it’s everybody."

Of course, this is asinine talk since a trade war does nothing but shrink the economies of the trading partners involved and does nothing in a positive direction.

It is not surprising that the stock market is reacting so negatively (coupled with the rapidly falling money supply growth that I reported on in today's EPJ Daily Alert)

I warned earlier this week (See:  What Is Anti-Trade Adviser Peter Navarro Telling the President About the Crashing Stock Market?) that the crazed anti-trade Trump adviser Peter Navarro was feeding Trump the line, "The pain is good in the long run."

Specifically, I wrote:
We can assume that Navarro is telling Trump the same thing behind closed doors: "Don't worry Mr. President, we are playing chess here. It's what happens in the long run that counts and in the long run we will beat the Chinese." What a mercantilist, nationalist nut job, who just happens to now be in charge of the mental IV that Trump is getting daily.
And so the WABC radio comments show that the IV has indeed reached Trump's brain. And this won't be bad just for the stock market. The more aggressive Trump becomes in the tariff arena, the more he will shrink global trade and force the standard of living down for all of us.

-Robert Wenzel 


  1. Let's say that the market crashes both due to regime uncertainty over Trump and tariffs, and because of a slowdown in money supply growth, or a contraction, that causes malinvestments to start to be liquidated. I fear that non-Austrians will simply draw the conclusion that it was the Trump uncertainty that led to the crash, and no one will believe us that it is at least partially caused by, if not wholly caused by, money supply issues. How do Austrians make their point among this noise?

    1. They dont and it will result in greater central bank freedom to do what they will with money that is not really theirs.

      The Idiocracy is alive and being manipulated quite nicely frak you very much

  2. Austrian theory has plenty to say about the stupidity of economic nationalism. It’s just that most of us believed (wrongly) that this was a battle that had already been won.