Tariff Tantrums
Wall Street’s ‘false flag’ operation.
Watching the hysteria in the press over Wall Street’s crude attempt to price in the cost of the Trump tariffs is yet another reminder of legacy media’s desperation for a story, any story. Not that the Street and financial press weren’t already joined at the hip.
I mean, they don’t call it The Wall Street Journal for nothing.
The gaslighting notwithstanding, we’ve had far wilder swings and deeper market dives while tariffs were headed down. Moreover, if trade deficits are actually pro-growth, as the chicken littles claim, how do you explain that surpluses have coincided with economic boom times for our foreign trading partners?
Hmm…maybe Trump’s tough trade talk isn’t the sole cause of a few market makers taking some profits. But like any reset—whether housing, equities or precious metals—there will be dislocations. My own view, informed by the history of erroneous prognosticators on CNBC, is that it will very short lived.
That is, if investors stay the course. Instead of capitulating to a bond market sell off, they should understand that interest rates will inevitably go higher and the dollar lower with this much government debt. Instead of putting off the day of reckoning, the political class should be embracing the DOGE spending cuts that have now reached $150 billion.1
But the dirty little secret is Wall Street (and those who report on it) doesn’t really believe in market forces. It believes in Keynesianism, ‘priming the pump’ of artificially low interest rates and inflation, just not the necessary and often severe correction that must inevitably follow it.