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Strategies & Market Trends : The Financial Collapse of 2001 Unwinding

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From: Elroy Jetson1/12/2025 12:59:30 PM
   of 13778
 
The immediate economic future depends upon how high Trump wants to push up inflation with import tariffs and deportations of America's labor force.

While this occurs, mortgage rates will rise, real estate prices will decline, and stocks with slow-growing earnings and lower margins which will be crunched by import tariffs will decline dramatically. Also badly hurt will be businesses which borrow a lot of money, which will be at increasingly higher rates.

Once peak import tariffs and peak inflation is achieved, then interest rates will slowly decline and interest sensitive investments will begin to recover.

There will be many new false investment opportunities in tariff-protected businesses which will spring up, providing inferior and more costly goods to substitute for products which sell outside US tariff walls. Eventually these businesses will fail because their sales will be limited to the United States market only and import tariffs eventually fail - even if they last long enough to bring down the entire economy in the process, as they did in Argentina - once the wealthiest nation per capita in the world.

In the process Trump may be able to achieve a temporary economic recession, but this will be short-lived as it will remove the base of support for economically destructive policies.
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