Trump needs to be impeached immediately to head off the trade war he has declared. His appointees who support that trade war, namely Commerce Secretary Ross and Trade Representative Lighthizer, should be fired immediately.
I am not trying to punish him, I am trying to stop the trade war. He has turned himself into a colossal mistake made by American voters in 2016. I don’t care whether he goes to the Leavenworth Penitentiary or Mar-a-Lago. I voted for Gary Johnson.
The foreign leaders who have threatened retaliation for this should also be impeached or whatever it’s called in their countries. There is no excuse for protectionism at any time any where.
Am I supporting the crazy black members of the House of Representatives who have introduced bills to impeach Trump. No. They’re idiots. They should also be impeached for being idiots, but they are not hurting America the way the trade war will.
Some people deny that protectionism causes trade wars and that they cause depressions..
Well, we will find out pretty soon if Trump’s protectionism is not reversed.
Let me give you a list of pertinent facts that cannot be denied:
• U.S. GDP has never been as high as now
• The number of U.S. jobs has never been higher than now
• Trumps claims he wants to increase the number of jobs. For whom? There are no U.S. residents left to hire. The Fed chair said we are at full employment and maybe have more people employed than full employment (you need a certain amount of unemployed because people quit, get fired, go to college or grad school, take vacations between jobs, etc.)
• The Smoot-Hawley Tariff bill (Smoot and Hawley were Republicans) was a large campaign issue in the 1928 presidential race. Republican Hoover said he would sign it. He won and took office in March 1929. He did sign it.
• The stock market crashed repeatedly starting on Black Tuesday October 29, 1929. “...by 1932 stocks were worth only about 20 percent of their value in the summer of 1929.”
(http://www.history.com/topics/1929-stock-market-crash) A similar thing happened to real estate, although there were few statistics on real estate back then. They used a study of real estate prices in the New York Times during the Depression to retroactively create the stats.
• Before the 1929 crash, the stock market was booming with shoe-shine-boy/taxi-driver speculative mania fueled by high-loan-to-value-ratio margin loans. There are lower loan-to-value-ratio margin loans now. But they contributed to the recent drop in stocks forcing some to sell to meet margin calls.
• In 1932, when FDR was elected, the U.S. national debt-to-GDP ratio was 17%. Today it is 105% meaning the U.S, government is in no position to provide the sort of government financial help it did during the New Deal.
• In 1929, international trade was 7% of world GDP. Today, it is 25%. Furthermore, about 40% to 60% of all imports coming to the U.S. now were, in turn, imported into the exporting country to make the product in question—including raw material and manufactured components from the U.S.
• “Buying American” today is near impossible. Virtually all manufactured products are a sort of international all-star team as depicted in the essay “I, pencil.” http://www.econlib.org/library/Essays/rdPncl1.html
Are they talking about this on TV today? Hardly. Fox had some too-young-to-know investment advisor shrugging the trade war off as a non-issue. This is a manifestation of the planned ignorance of the American people with regard to economics. It is not taught in high school and is not mandatory in most colleges. It WAS mandatory at my college: West Point. And much of the economics that is taught in America is taught by extreme Leftists in college and grad schools and in the occasional high school economics class by a teacher’s union member.
There is also the fact that those who do not study history are condemned to repeat it. The young ignoramus “investment advisor” on Fox this morning would be a example of that. Two of my books—Best Practices for the Intelligent Real Estate Investor and How to Protect Your Life Savings From Hyperinflation & Depression, 2nd edition have chapters on pertinent history.
If Trump had declared military war on the rest of the world, it would be all they would be talking about today on the news. Trade war has approximately the same effect on jobs. During shooting wars of the past, German submarines ended trade between Europe and the rest of the world. In a trade war, tariffs do the same.
Look at where your clothes were made on their labels. In a trade war, they will be replaced by more expensive Made in America versions. Wal-Mart and other retailers might be bankrupted by a trade war. Amazon will have no way to avoid being hurt the same. Look at your car. Where was it made? Even if the factory was in the U.S. many components were imported. When you need a new one, it will be much more expensive. So it will go with regard to everything you buy during the trade war.
I recommend the diary of Anna Eisenmenger if you want to know what it felt like to live through hyperinflation. The diary for knowing what it is like to live through a Depression is Great Depression Diary by Benjamin Roth.
Is it too late to employ the anti-Depression measures in my book? No, but it may be close to too late. Notwithstanding the U.S. media almost ignoring this story, there could be an explosion Monday, March 5th in the stock and bond markets. After such an explosion may be too late.