At first, the market dipped, then rallied after China matched Trump’s $50 billion tariff threat. Now it is dipping at his latest salvo – $100 billion more. Traders are searching for some rationale for ignoring the very real threat of a tariff war between the U.S. and China. They can search all they want, and for as long as they are able, but Trump will, indeed, take America into this unwarranted and very dangerous confrontation with China.
China doesn’t want it. Americans, other than Trump, do not want it. But Trump is now unleashed; he no longer has any guardrails. He has fired all people around him who could and would throw caution as his instincts. All he has now are yes-men, preferring to go it alone as he has all along, responding quickly and irrationally to everything. While we have known all along that this will be his downfall over time, it is now clearer that it will have significant adverse repercussions for our economy (immediate and long-term).
Only the mid-term elections, if we can make it to November, can save the country from very serious harm. If we can get there, the Democrats will win at least the House, and may even take the Senate. And, if one projects to 2020, it is more than likely that the Republicans will be totally silenced and the Democrats will then control the presidency and all of Congress. And, then we will be in still terrible straights. All the progress in taxes and deregulation will be rolled back and America’s economy will continue to suffer seriously, dropping back to old, tired and already failed policies.
It is not a pretty picture – now, two years from now – but we deserve it. We elected Trump, we allowed our representatives and senators to hide under the bed, to surrender their independence. America has lost its way. History will take lasting note that one foolish and very bad choice could reverse centuries of progress.
It is a sad time, but we are all responsible.
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