It's About Wealth Transfer

A lot to unpack here, no idea who this bloke is, but he's very bright. I like his idea that what we're seeing now is huge wealth transfer - again. That's because the US must always import some things, it simply has to. So these imports will be tariffed, making the price of everything in the US much higher. The US doesn't have the manufacturing capacity to substitute with its own output. 

So, people on lower incomes will pay higher prices, an effective tax in other words. Small business will be driven to the wall, they're collateral damage. The winners will be large corporates which can fund the imports, and the difference between retail prices and the cost of production will be subsidised by the taxpayer. The people end up paying twice, another wealth transfer. Sounds logical, and explains why the takedown of the US economy. 

Trump Crashing Global Trade

Here's a YouTube video where the bloke thinks there's not a lot of thought gone into the current trade war, started by the US. If there is any sense to it, then, possibly, it is intended to force a renegotiation of any trade rules and relationships that do exist. The idea being to skew those new deals in favour of the US.

My own idea is that this government of billionaires are intentionally crashing the market. They make money short-selling on the drop, and then buy up entire industries when it bottoms out. They'll end up owning everything this way, and for cents on the dollar. If this is even close to their thinking, that is very dangerous indeed as it may become the French Revolution all over again.

What authorities and elites fail to remember, is that the thin blue line is a very thin line when the proverbial hits the fan. 

Argentina Mess

The story of Argentina and how it slid from developed to developing is a sobering lesson in how to go from wealth to poverty. The US needs to pay attention, and New Zealand too for that matter: if you skip to the end, you'll find that where economic and political systems are controlled by powerful and exclusive elites, no matter what model is used - protectionist or free trade - failure will follow. Countries must have political and economic systems which allow a changing of the guard, people with new ideas and methods, leading to a redistribution of wealth.