3/23/2025

American economy imploding from self inflicted trade sanctions, tariffs and job cuts

 The USA will not collapse that fast, with all the frenzied money printing going on. What will happen is that inflation will result in civil unrest, when cost of living becomes intolerable. This isn't just affecting the Blacks, but across the board. 'Black Lives Matter' protests just died down eventually, but when it affects the whole bottom feeders, making up 50% of the USA population, the protests will not be trivial.


There is a massive protest now in the UK against Kier Starmer by pensioners, students, unions and farmers demanding for his resignation. Starmer basically did the opposite of what he promised when he took over the PM's job. He lied all along. This is a worst nightmare unfolding for Starmer which is touted to be unknown in UK history.

Trump is going to face the same Karma, sooner than later. Of course, as I said, the USA holds the money printing privilege that the UK does not have, to prolong the inevitable. But when the USA cannot continue to export its money printing inflation to the rest of the world, that will ignite the fuse domestically, as consumers find the price increases intolerable as in the UK.

This is still early days yet for Trump's tariffs to show up in the economy, despite all the gloating about inflation not rising uncontrollably. It will take a month or two to see the real damage over those tariffs. The lull in the storm is made possible by the stockpiling late last year when Trump was elected. Businesspeople knew that Trump will be escalating his trade war with more tariffs, and they already did their stockpiling in anticipation. But stockpiling needs avenues for repetition, which is not forthcoming, as imports continue to be more expensive.

Anonymous

1 comment:

Anonymous said...

With the amount of money printing going on over the last couple of years, the USA economy is just a blown-up balloon waiting to explode or implode if it rises higher. The deficit over the last couple of years is mind boggling, with spend, spend, spend afforded by the print, print, print doctrine. This cannot last forever, though the USA thinks the party will never end. So many empires have risen and fallen over the centuries, and the USA is likewise going to fall, if not by external causes, it may be due to internal self-inflicted decline due to over-estimating its infallibility.

Countries around the world have seen the injustice of the US$ hegemonic system, which is why Russia, China and BRICS countries are looking for a fairer system for the Global South countries. It cannot be that Global South countries and China are producing all the goods for the USA to enjoy, while the USA needed only to keep printing its toilet papers at will, exporting its inflation globally.

What really broke the camel's back was the weaponization of the US$ being used for sanctions against other countries despite the already perverted advantage that the USA is already enjoying. This was one big misstep of the USA, which is the cause of the unravelling of the US$. De-dollarization is doing the job of marginalizing the use of the US$, to prevent further use of it for sanctioning, not destroying it completely, just like the British Pound's decline over the decades.