The problem with China is they will never come to their senses either. Their system is incredibly seized up with a lack of information that Xi may not even know the impact. Think of what Trump is doing by stacking the administration with retarded loyalists, but times 100.
Republicans before the election: "We need to deport all these illegal immigrants who are mooching off our system and not paying taxes." Republicans now: "We need the records of all the taxes these illegal immigrants paid so we can deport them."
The immigration thing is a grift. Charging folks $1k/day until they self deport will lead to seizing their assets, which IRS just gave them the list. Sending folks to El Sal prisons, because Guantanomo isn't cheap! Also....as of 6 months ago, Iran publicly didn't have a nuclear weapons program, and if they did, Israel was on deck to deal with it, not us. We were repairing relations in that region after the Afghanistan departure. Now.....fuck. Trump has very little at his disposal to correct the recession he caused. Interest rates are still fairly high, but inflation skyrocketing while in recession is a nightmare that tanked 2 president's in the 1970s. Trump has a tendency to overheat the economy, and the increase in spending during this term is proof. He really expects the tarriffs to pay down all this debt, and cover his tax cuts, because he cannot fathom tarriffs making things more expensive and thus selling less. He can't bail industries out, without admitting the tarriffs were a mistake, and the line of individual firms, industries or even countries who want to negotiate is paltry. There are decades of trade agreements in place that he violated. We already negotiated this shit and you ruined it, why would we bother coming to new agreements when you are not going to honor them or change them via tweet?
I just want to point out that this is a forced labor camp in El Salvador to which we are sending people who have not been convicted of any crime. In the past this used to be known as the "international slave trade," and was considered so abhorrent that even the Confederate States of America outlawed it.
Wonder how long it will take major movements to pull out of the US, like the world cup or Olympics? Also, even if he pulls tarriffs back today, the damage is done. Most of those stock gains were due to a huge influx of foreign investment, because the dollar was cheap and stable. Now, the opposite is true, and there hopefully won't be another global pandemic causing investors to park funds in US firms.
Yeah, ran across this article. https://www.reuters.com/markets/global-markets-tariffs-bonds-2025-04-09/ An interesting part: Warning signals have flashed for a few days as spreads between Treasury yields and swap rates in the interbank market collapsed under the weight of bond selling. Hedge funds were at the heart of it because their lenders could no longer stomach large positions betting on small differences between cash Treasuries and futures prices, or swaps, as markets started to swing on tariff headlines. "When the prime broker starts tightening the screws in terms of asking for more margins or saying that I can't lend you more money, then these guys obviously will have to sell," said Mukesh Dave, chief investment officer at Aravali Asset Management, a global arbitrage fund based in Singapore. The so-called "basis trades" are typically the domain of macro hedge funds. They rely on selling futures contracts or paying swaps and buying cash Treasuries with borrowed money, with a view to exploiting slight price differences. As they dumped Treasuries this week, bond yields have soared and fallen out of sync with swaps . At the 10-year tenor, the gap has shot to 64 basis points, the largest on record.
And China's economy is based on this^ system not collapsing in the wrong direction. They basically take US Treasury notes and then trade them back and fourth between their 4 state banks to offset each other's debt. Bank A's debt gets too high? Buy notes from Bank B, who then buys from Bank C, who buys from Bank D and then buys from Bank A. This could cause (or really hasten) the collapse of the Chinese economy. If that happens, the Politburo goes with it.
Trump just announced a 90 day pause on tariffs for most countries, but he's doubling down on China, now up to 125%. He's got some kind of plan, right?
“Listen, shitholes. We either need you to buy a whole lot more of our stuff, or we’re gonna sell you a whole lot less! No more losing!”
As a Canadian, I have no fucking clue what the tariffs are right now. Elect a clown, expect a circus.