The Dow Jones has been on a wild ride, surging and plummeting by the thousands.
The negative moves are being blamed on our president and “his tariff war,” and, of course, credit for any positive moves is being handed out by the propaganda media to the crime syndicate Left.
This from discernreport.com.
Concerns include a wide gambit of possibilities:
– Is this wild ride a Trump negotiating tactic, or is there a bigger plan at work here?
– Are we witnessing a global “Art of the Deal” unfolding?
– Trump truly is aiming to bring manufacturing back to American soil, yes?
Last week kicked off with a bang, or rather, a 2,000-point jump in the Dow within a mere 30 minutes. The reason? Rumors of tariff deals. But like a house of cards, it all came crashing down when the news turned out to be something else.
Undeterred, stocks took another shot on Tuesday, soaring a thousand points. This time, Trump himself touted a “perfect phone call” with Korea on trade. The idea that China might follow suit gained traction. In fact, several countries have already lined up to offer major concessions if the U.S. ends its tariffs.
So, who’s bending the knee? Just days into the tariffs, a surprising number of countries have offered “zero for zero” deals, meaning they will eliminate their tariffs if the U.S. does the same:
- India
- Israel
- Argentina
- El Salvador
- Vietnam
- Taiwan
- The EU
Taiwan is sweetening the deal with major investments, adding to the already promised $165 billion from Taiwan Semiconductor to create American jobs.
Japan is likely working behind the scenes, given their export-driven economy and the free protection they receive from the U.S.
The major outlier? China. They are not accustomed to hearing the word “no.” While China’s Ministry of Commerce has vowed to “fight to the end,” President Xi Jinping has remained notably silent, potentially leaving room for negotiation.
So, what is the endgame here? Is Trump orchestrating a global “Art of the Deal,” pushing countries to open their markets to American exports? Or is he genuinely trying to re-industrialize America? And what about all the talk about ending the Fed? Oh, and the IRS being swapped out for an ERS?
Trump claims he is in it for the long haul.
Of course, he would say that—he cannot show weakness, or countries will simply wait him out. But the truth likely lies somewhere in between.
Trump promised to bring jobs back to the Rust Belt. There are two ways to make that happen: Boost exports and bring manufacturing home.
But there is a catch: the clock is ticking. Trump realistically has only approximately one year to make this work because of the midterm elections. If the stock market tanks or tariffs cause inflation and supply chain disruptions, he risks losing Congress and facing two years of gridlock.
A year is enough time to replace some imports by expanding domestic capacity. But it is not enough time for a full-blown re-industrialization. Setting up a single factory will require more time than that. And import substitution factories will not start until the trade situation stabilizes.
Trump is playing a classic game of good cop, bad cop. He’s pushing countries to come to the table while publicly musing about how much he enjoys tariffs.
Markets expect he will cut deals with most countries, boosting American exports and securing investments to create domestic jobs.
The biggest wild card in this whole situation is China. However, China competes with countries like Korea, Vietnam, and Mexico. Every deal which Trump cuts with those countries puts more pressure on China, chipping away at their market share.
This suggests China will eventually have to “bend a knee.”
The goal is Trump’s “tariff war” will end with a grand bargain that boosts American exports and brings jobs back home. Likewise, the goal—contrary to the tunes being sung by all the self-important naysayers—economic uncertainty will be short-lived and for the most part Americans will feel zero to minimum discomfort.
Only time will tell, the stakes are high, the world is watching, and America could very well be on the edge of a golden age. Now, the promises of an end to the Fed and income taxes, a return of the manufacturing glory once known in America, and true economic magnificence is well at hand.
God speed to the Trump-Vance team.
