There is so much happening beneath the surface of all of this that it is difficult to comprehend the true chaos.
There is just no way shape or form that the market has actually priced in the true damage of the Tariffs because they are so huge everyone believes it must be a bluff.
China just hiked their tariffs to 125% from 84% and they are with laser like precision hurting Trump in ways he didn’t anticipate by dumping their enormous holdings of Treasury Bonds and lessoning their demand globally for the American Dollar while propping up the Yuan…
Bond analysts debate if China had role in Treasuries yield swings
…and the Chinese have told all Banks to dump the American Dollar…
China’s central bank calls on state banks to reduce US dollar purchases
…which has led to Bond market collapse…
The bond market got “queasy” — and it spooked Trump
…and the drop in the American Dollar…
US dollar falls to weakest level against the euro in 3 years
…we are in a Trade war between America and China right now.
The only reason the market hasn’t gone full meltdown is because 145% tariffs vs 125% tariffs between the two largest Economy’s on the Planet is just too nightmarish a scenario to contemplate so they have convinced themselves it’s all a ‘Art of the Deal’ Bluff.
The problem is three fold:
Some on Wall Street have expressed fear the White House is “not acting rationally”
1 – Trump thinks God saved him from assassination and that God is on his side, so he will take risks others wouldn’t and he’ll make them not for clear cut goals, but for some religious quest he thinks God saved him for, like a white Christo-fascist Super State stretching from the Panama Canal to Canada to Greenland.
2 – Trump’s people have grossly miscalculated the Chinese response. They told Xi not to retaliate and to call Trump, bow the knee and the tariffs are dropped. The problem is Xi will refuse point blank to bow the knee, won’t call Trump first and in fact retaliated. Trump’s idiots have jumped on the back of a dragon and don’t know how to get off without getting eaten! If this had been Art of the Deal bullshit bluffing, Trump’s morons have inadvertently placed themselves at the mercy of Xi who has zero intention of letting Trump get away with this and will find a global economy wanting to trade with China and not America.
3: The really bleak truth is that while this is all happening in the foreground what is happening in the background is getting missed.
Trump is about to green light Israel to attack Iran’s nuclear facilities with the help of the US.
A second Carrier Group has arrived in the Middle East alongside an enormous build up of Stealth Bombers…
Are B-2 bombers a message to Iran? ‘We’ll let them decide,’ Pentagon chief says
…US envoy Steve Witkoff is meeting Putin to alert Russia of their intentions on this matter while America is forcing Iran to meet with them this Weekend…
White House insists talks between US and Iran this weekend will not have a mediator
…America will demand Iran removes all capacity for a nuclear bomb or else, Iran will tell America to fuck off, Israel and Trump will bomb Iranian nuclear facilities and then Trump will use that military action as a threat over trade negotiations.
Shit ’bout to get real.
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No body wins a trade war
But somebody always wins a real war, and that is what Trump is preparing for.
And no country can win a modern war without a strong industrial base.
https://edition.cnn.com/2025/04/10/business/manufacturing-us-jobs-trump-tariffs/index.html
The Daddy Warbucks of the world benefit from war and chaos.
As Karl Marx noted long ago, the regular cycle of economic collapse that befalls capitalist markets on a regular basis, allows the very rich to buy up all the ruined businesses for pennies on the dollar.
Rep. Marjorie Taylor Greene bought stocks hit hard by Trump tariffs during the market meltdown
Bernard Condon – Associated Press – Fri Apr 11, 10:09AM CDT
….As stocks tanked on tariff fears, Marjorie Taylor Greene showed her faith in the president not just with words but dollar bills.
The Republican congresswoman, an avid supporter of the Trump administration’s trade policies, not only bought stocks last week as others dumped them in a panic — she scooped up some of the biggest losers.
Lululemon, Dell Computer, Amazon, the parent of Restoration Hardware and a few others hit hard by Trump’s tariff threats were down 40% on average late last week when she pounced.
Data from a required three-page financial holdings document doesn’t disclose exactly how much she paid for the stocks, only ranges and dates….
War enriches the Taylor Greenes, Donald Trumps and Elon Musks of the world even further.
https://www.theguardian.com/technology/2025/feb/13/us-department-of-state-plans-to-spend-400m-on-tesla-armoured-vehicles-elon-musk
Trump (like every US President) is clearly compromised when it comes to Israel. In this case at least, people are right to be concerned whenever you hear Bibi is talking to the US President regarding Iran. A “regime change” war with Iran will be at least 5x as devastating as the Iraq/Afghanistan wars combined. Anyone for that either loves war and death, or is too young to remember US’s previous modern military adventures (all of them disastrous).
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