💔❤️
part of those expectations is just that tariff incidence will be shared. pre-tariff arrangements are sticky, buyers want to buy and sellers want to sell. now there’s a new cost. that will discourage transactions to a degree, but remaining transactors will pay and share the cost. 1/
currency depreciation is how sellers cover thr portion of the cost. it’s better than individual exporters reducing domestic currency prices, which wld require renegotiation of eg labor contracts or put firm solvency at risk. domestic currency profitability is unchanged, its FX value is reduced. /fin
i hope you are right! but i think it remains the best explanation of Trump’s choices, he’s going after Canada and Mexico because that’s where the money is and where he thinks he can get away with it.
of course they will try. but they don’t have much leverage, in the way that China or the EU might. they are big trade partners but small economies, small powers geopolitically.
“One must be careful not to reify the clichés: just because everyone says it’s real doesn’t make it real. Or rather, it does, and that’s the problem.” @lioneltrolling.bsky.social www.unpopularfront.news/p/vibes-cartel
“i will abuse you until you consent to marry me” may not be the flex they think.
besides maybe a handful of billionaires on an inauguration stage, is there anyone more pathetic than Congressional Republicans, who are watching their guy burn down the country but do nothing because what? they might have to face a competitive primary? oh the poor poor dears.
somewhere in an attic there is a portrait of a head of lettuce rotting most floridly.
Loading quoted Bluesky post...
lots of talk about how Ds should shut down the Senate, and i get it. but are there no Rs concerned about the vandalizing of the Federal govt by an unelected megadouche and some 14-year-olds? is there no chance of the legislative branch asserting itself as the legislative branch to say woah wtf?
it’s kind of wild to incentivize Canadian and Mexican firms to move production intended for the US market to China because lower tariff rates.
i’m sure that’s lots of it! but lots of countries are too weak to fight back. he wants too weak to fight back + lots of revenue (naively at least, multiplying current imports times tariff rate). so our neighbors are the sweet spot!
it seems weird to pretextually tariff good friends and allies, Canada and Mexico, if the motivation is trade balance. why wld China be tariffed more lightly? but it makes perfect sense to tariff our biggest trading partners if the motivation is revenue, re-McKinley-izing, replacing the income tax.
try typing "dooming" in the BlueSky search bar. you'll find no shortage!
i find commenting about dooming (mostly to scold it) all over my feeds.
i am grateful to Trump and especially Musk for making so powerful and visceral a case that wealth taxes — at levels quite confiscatory for a while, to remedy past lassitude — are an absolute necessity, prerequisite to a sustainable democratic society.
Loading quoted Bluesky post...
