Sly, US PRODUCER PRICES RISE BY MOST IN THREE YEARS Trump raises tariffs on copper, steel, and aluminum to 50% in order to encourage domestic production of these key commodities.
Manufacturing costs rise as a result, because you know, his corrupt-ass "tech bros" haven't yet figured out a way to create new steel mills, copper plants, and aluminum production centers at the push of a button.
So to counteract the rise in costs, Trump wants Powell to lower interest rates, and he'll use the power of the corrupt-ass DOJ to try and force Powell to do his bidding.
Borrowing rises, debt rises, more money circulates through the economy, all chasing after goods that are in short supply and becoming more expensive thanks again to Trump's tariffs.
Result will be inflation.
"But but that's FAKE NEWS FAKE NEWS FAKE NEWS," cry the MAGA snowflakes, because inflation hasn't spiked up yet.
The problem is that inflation is a lagging indicator. Look at the 2020 pandemic, for example. Supply chains froze, but people still need essential goods in order to live and work (either from home or in their "essential services" occupations). There was already a huge imbalance in supply and demand, yet inflation remained under 2% for all of 2020. It wasn't until 2021 and 2022, when the world was trying to get out of the lockdowns, when inflation started spiking up.
Trump's tariffs will have a similar effect, except there will be no pandemic to blame. Just Trump's chaotic meddling in the global economy, all for his bloated-ass ego.
Tenchusatsu |
