Closing Thought–17May19

We are in a war of words and deeds…a trade war….with China….Our Beloved Supreme Leader went on the Tube and soothed the ruffled feathers on Wall Street and the markets calmed down a bit…..but how about the rest of us unwashed masses that do not depend on Wall Street for our wealth?

Me? I do not shop on 5th Avenue so I want to know how I will fare with Trump’s mash up with China…..

Walmart warned on Thursday that higher tariffs on imports from China will mean higher prices, the AP reports. The comments came after the nation’s largest retailer reported its best sale performance at its established US namesake stores for the fiscal first quarter in nine years. It marked 19 straight quarters of same-store sales gains. “We’re monitoring the tariff discussions and are hopeful that an agreement can be reached,” said Chief Financial Officer Brett Biggs. But he told reporters, “Increased tariffs will lead to increased prices for our customers.” Walmart declined to comment on what type of price hikes shoppers could expect and which products would get the biggest increases.

The specter of higher prices was also echoed by Macy’s CEO Jeff Gennette. He told investors Wednesday that if a fourth round of tariffs takes effect, that could mean higher retail prices for both store label and national brands. Target, JC Penney, and other major retailers will be reporting results in the next few days and should shed more light on the issue. Walmart, Macy’s and other major retailers have been left largely unscathed by the first several rounds of tariffs since they focused more on industrial and agricultural products. But that changed last week when the Trump administration slapped 25% tariffs on imports like furniture. The administration wants to extend the 25% tariffs to practically all Chinese imports not already hit with levies including toys, shirts, household goods and sneakers.

While Wall Street smiles the rest of us get raped……well our wallets to be exact……not what I signed on for…..

You?

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Tariffs…..Tariffs…..We All Fall Down

Of all the shiny objects that Trump and his lackeys throw out for the news to digest…tariffs is the biggest one for his supporters and our economy…….

I heard a report that advisers in the Whote House aren scrambling to explain the markets to this president…..

Seriously?

A “really smart person” and a graduate of the Wharton School of Business (the second most prestigious school of business) needs someone to explain the economics?  Did he sleep through that class at Wharton?

Let me help his supporters for they are wrapping themselves around a LIE.

How simple can I go?

A tariff is a TAX……how’s that for simple?

A tariff is a tax on goods coming into or leaving a country. That tax might be an ad valorem tax, which is a fixed percentage of the product’s price from time to time, or a specific tax that stays the same no matter what happens to the product’s price. Either way, the aim of import tariffs is to stop cheap goods from coming into the country from overseas and stealing market share of domestic producers. In this sense, tariffs are a form of protectionism, imposed to save industries that are especially vulnerable to competition from overseas.

I have tried to make it simple for people to understand tariffs and their results……

https://lobotero.com/2019/05/10/as-tariffs-come-and-go/

I am not so sure that Trump economic policies were the result of Trump economics……tariffs are proof for me…..they will bring the “surging” economy to a screeching halt.

Stupid is as stupid does!

A couple of idiotic statements from this group of mental midgets……

As the US-China trade war continues to rage, President Trump is not only defending the hugely disruptive effect it is having on the global economy, but promising that the “great patriot farmers” of America would reap the rewards when the US ultimately won the trade war.

Trump promised that the US government would compensate farmers for any losses they suffer from the tariffs, and suggested China would pay for that compensation in the form of the higher tariffs they are paying for the US allowing them “to do business with us.”

Trump’s promises to the farmers are likely driven by the political reality of the situation. Farmers heavily backed Trump’s election, and the trade war has heavily hurt their exports to China, as retaliatory sanctions have left them increasingly noncompetitive on the market.

Sen. Tom Cotton (R-AR) was a lot more comfortable with US farmers suffering in the trade war. Cotton insisted the hardship for them was “minimal,” and that China would suffer more than America would, suggesting that made it worth it.

Cotton further said that the hardships borne by American farmers was nothing compared to the sacrifices made by US soldiers in various wars overseas.

(antiwar.com)

Very smart?  MY ASS!

Trump’s lie that this is just a squabble with China seem to have soothed the feathers of Wall Street……markets are a bit more stable…..

Maybe he is smart….smart enough to know that a LIE will tamp down any opposition to Trump’s mash up with China.

As Tariffs Come And Go

Is that the sound of brakes being applied to this “surging economy”?

Trump once called himself , well he has called himself many things none of which are accurate but this time he was close, “Tariff Man”…..as of midnight a 25% tariff was placed on some Chinese imports.

The trade war is heating up: China said Friday it “deeply regrets that it will have to take necessary countermeasures” after the tariff hikes threatened by President Trump kicked in at 12:01am. American and Chinese negotiators met in Washington, DC, Thursday but were unable to reach a deal to prevent tariffs increasing from 10% to 25% on more than $200 billion in products China exports to the US, the Washington Post reports. The White House said that after a “working dinner,” chief US negotiator Robert Lighthizer and China’s Vice Premier Liu He “agreed to continue discussions.” The tariff hike only applies to products that left China after the deadline, which gives negotiators more time to work out a deal.

Trump said Thursday that he had received a “beautiful letter” from China’s President Xi Jinping and while a deal is still possible, he is pleased that tariffs are bringing in “billions” of dollars for the government, the New York Times reports. The tariffs, however, are paid by American importers, who pass the costs on to the consumer. “It’s going to be a big shock to the economy,” Deborah Elms, executive director at the Asian Trade Center, tells the BBC. “Those are all US companies who are suddenly facing a 25% increase in cost, and then you have to remember that the Chinese are going to retaliate.” Despite the escalating trade dispute, world markets rose on Friday, with analysts predicting that a deal will be reached.

A Tariff?

How many Americans can define this economic tact?

No need for Google (but if you want to check my assertions then head to that magic button) the old professor will be glad to help with your refresher course.

What is a TARIFF?

The simple definition….. A tariff is a tax imposed by one country on the goods and services imported from another country.

How do Tariffs work?

Governments may impose tariffs to raise revenue or to protect domestic industries—especially nascent ones—from foreign competition. By making foreign-produced goods more expensive, tariffs can make domestically produced alternatives seem more attractive. Governments that use tariffs to benefit particular industries often do so to protect companies and jobs. Tariffs can also be used as an extension of foreign policy: Imposing tariffs on a trading partner’s main exports is a way to exert economic leverage.

Tariffs can turn into what some called a trade war…….

Tariffs can have unintended side effects, however. They can make domestic industries less efficient and innovative by reducing competition. They can hurt domestic consumers, since a lack of competition tends to push up prices. They can generate tensions by favoring certain industries, or geographic regions, over others. For example, tariffs designed to help manufacturers in cities may hurt consumers in rural areas who do not benefit from the policy and are likely to pay more for manufactured goods. Finally, an attempt to pressure a rival country by using tariffs can devolve into an unproductive cycle of retaliation,

But to help your education I have included a couple of short videos…..

One side effect that could come back to bite Trump in his massive ass is a bad jobs number and tariffs will produce that in most cases……

The tariffs will “drive down exports, and suppress job gains for the industry by as much as 400,000 over 10 years. It will also invite China to hit back at American businesses, farmers, communities, and families,” said Kip Eideberg, vice president of government affairs for the Association of Equipment Manufacturers, which represents more than 1,000 U.S. makers of farm, construction and mining machinery.

https://www.bloomberg.com/news/articles/2019-05-10/u-s-equipment-makers-see-trump-tariff-hike-costing-400-000-jobs

This is a TAX….do you get that? It is a TAX on the rest of us mere mortals…..then why is the entire GOP down with this attack on tax policies?

This is just a game to this president….he is trying to do something he promised so he has more to run on than his shaky positions elsewhere.

Hopefully his supporters are reading…..these tariffs are a TAX on you and your family.

Got IT!

Learn Stuff!

Then GO VOTE!