Another reason why we are headed for a stock market downturn.
I'm not thinking that China will win. I’m feeling that both sides will suffer if the trade war takes full effect. If it does, this is one more reason that we will end up with a stock market crash. (Unless the policy is modified, which most people are hoping it will be, as most of Trump's policies-by-tweet are.)
A number of years ago, while meditating, I saw a market crash in a vision that would happen some time in 2019 to 2020. I didn't have reasons, just a vision I got four years ago. Maybe the vision won't happen. After all, it was four years ago that I got it.
But Trump keeps taking steps that could make that crash a reality (although I hope it won't happen).
If the market crashes, China tariffs won't be the sole reason for the crash, but add to that Mexico trade disruption, which is also on Trump's agenda. Then there are other factors:
(1) He dismantled banking controls (the Dobbs-Frank law) that were put in place to prevent another crash after 2008.
(2) He passed a sweeping tax bill that causes huge deficits and sucks money from the middle class to the wealthiest where it does not trickle down.
(3) He's starting more wars, which will drive the deficit up further. It's common economic sense that you don't give a tax cut and start wars at the same time. That's what Bush did and it helped us get to the 2008 crash.
Something among these reckless moves is going to be the straw that breaks the camel's back.
Plant a home garden and can!!
planting a home garden could be difficult for the marginalized urbanites who work 12h a day for a starvation wage. I mean, hey, I'm somewhat privileged, have time to read up on gardening stuff and still can't get my cilantro to grow. We need more radical solutions, including learning what an inclusive community means.
True... those who can grow things like me will have to share their bounty. I pretty much gave away most of what I grew last year and it was spiritually very gratifying.
Several thoughts on this.
Trump basically handed over the car keys to China when he pulled out of the TPP and during his China trip. By stepping back from world leadership we are leaving a power vacuum that China and Russia are more than happy to fill. We are the classic overextended empire.
I would also suggest that one of the biggest threats to the economy is the Republican congress. They, not Trump, created the tax cut package and they were also the ones who are pushing the rollback of banking regulations and consumer protections.
Also, when a downturn comes, Republicans will be much less proactive in addressing it. Remember Mitt Romney calling for the dismantling of GM in 2008 as just one example.
There are a lot of technical indicators going in the wrong direction right now such as the spread between the returns on short and long-term bonds and the unsustainable price to earnings ratios of stocks. The Fed also continues to inch up interest rates which will both slow down the economy and put pressure on anyone who has debt.
The tariff splatter isn't playing well in the heartland; it's already freaking out the futures markets, negatively impacting investment in farming equipment, and creating insecurity: https://www.washingtonpost.com/powerpost/trumps-emerging-trade-war-threatens-house-republican-seats/2018/04/03/d00c986c-373e-11e8-9c0a-85d477d9a226_story.html?utm_term=.44a22f44a13f and https://www.msn.com/en-us/news/us/they-voted-for-donald-trump-now-soybean-farmers-could-get-slammed-by-the-trade-war-he-started/ar-AAvvUz2?ocid=spartandhp. Rather than seeing that the politicians they elected not only failed to keep their promises but also created the sorrow and chaos before them, conservatives in rural areas will probably be more likely to look to authoritarian figures for guidance and someone to scapegoat. I keep wondering if this doesn't play into Zoron's earlier prediction about the rise of the alt right. At the same time, I wonder if this won't ferment new kinds of candidates who begin to siphon off and divide the traditional blue and red parties. Independent candidates may be more appealing than those identified with red or blue parties in the midterms.
Trade war(s). Dollar is no longer the dominant world currency. Debt becomes unserviceable and implodes. Totally corrupt, unqualified and dysfunctional government. More shooting wars (NK, Iran, ???) that are too costly and also unserviceable. Take your pick.