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Joined 2 years ago
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Cake day: July 3rd, 2023

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  • The purpose of tariffs is to reduce supply, and allow local producers to increase costs without facing competition. So, supply will be affected, no matter what.

    Add money with reduced supply and you get inflation. Already countries are looking to increase trade with each other in lieu of trade with the USA. China on particular has been talking to all the Asian producers to reassure and warn against demaking with the USA. They are now the trustworthy partner.

    The recession is going to come from a loss of commodities. From a loss of trade, including the components essential for domestic production. Those prices are going to rise. Jobs will be lost. All the while, all exporters to the USA will increase their prices in response to USD fall on value so that their margins in their currency remain the same.

    Sure, the falling dollar, in normal circumstances would make American products more attractive, but all other countries are now imposing tariffs on the USA in response. Some, like the EU, have not done it across the board, but they will ramp up. China and USA have effectively planned to cease trade. America doesn’t have the high tech supply chain they need to compete with Chinese products internationally.

    As the recession will lead to job losses, wages will have downward pressure, not up, like in every other recession.

    The fact that you remain unwilling to listen and have made up your mind to remain I’ll informed os a poor decision.



  • Firstly, the value of the dollar decreasing will increase the cost, in dollars, of all imports. The tariffs on top will add to this inflation.

    Printing money doesn’t automatically lead to inflation but in a recession environment where less is being produced, it certainly does. The quantitative easing and money printing workdwide, due covid, led to the crazy inflation we saw. Certainly supply was a problem, but a reduction in trade between 2 giant economies is also going to cause those kinds of bottlenecks.

    Add loss of faith in the dollar and this multiplies. Trump is destroying the dollars purchasing power which leads to inflation. All the while he’s killing jobs in public sector and private sector at the same time.