Economics

"the largest redistribution from poor to rich in American history."

on top of

"Trump’s tariffs remain at levels that amount to one of the greatest tax increases in American history"

and it only "might" be a bad thing?

I think the big takeaway here is that American exceptionalism is over. America's aura has gone from fading to faded.

We are seeing bond yields go up and the value of the dollar go down, a rarity in our lifetimes. Typically when yields go up, the demand for US securities and, therefore, the US dollar goes up, increasing their respective value.

The fact that demand is not increasing despite better yields points to investors having lost faith in the US government to pay back its debts. A tax and spending bill that adds 3.8 trillion dollars to the deficit over 10 years is not reassuring.

We're seeing more and more typically direct relationships become inverse relationships which really just point to one central idea - people have lost faith in the USA.

Most governments, especially Western governments, count on the wealthy to see their securities as a safe place to store their money. Its why they're able to run massive deficits to provide services for their constituents (and also, at times, gives them room to be fiscally irresponsible). We are seeing this paradigm shift gradually with Japan's and the UK's yields having also gone up due to fiscal mismanagement as the list of nations having AAA credit ratings becomes smaller.

Good! As a non american person suffering indirectly from the cunt's "politics" with nothing to do but to look in dismay as he fucks over the whole world, I'm gonna take whatever that fucks his country as schadenfraude. I'm sorry, Americans, you have fucked the whole world badly with your president, if his bills fuck your country, it's on you and only on you.

Might?

Unfortunately, no matter who ended up in charge the debt was always going to rise catastrophically. Trump talked a good game up front, but all you need to do is look at his first term to realize he doesn't want to be the guy who takes anything away. 

But unfortunately even the discussion around this bill shows that his political instincts are correct even if they are going to ultimately help destroy the country. The moment that anything is on The chopping block, everyone starts to panic as if you can just spend unlimited money forever without consequences.

Now people who want to make this a partisan issue are being silly, there is no political party you could vote for other than perhaps the libertarian party who would actually cut spending if given the chance. Unfortunately that's the game that we are playing right now, and you even see it in all the stories listed on this economics community -- nobody wants to lose anything paid for by the state even though nobody is paying the full cost for all the services being presented.

In a previous analysis I realized that the unlimited debt spending is the price of unity. The fact of the matter is that most countries on Earth today need to heavily balkanize, the only reason that they haven't yet is massive government outlays that effectively purchase loyalty. The same thing happened in the final days of rome, and it will continue to work right up until it entirely stopped working and all of these empires collapse. It also happened in Weimar Germany, the late Ottoman empire, and late Qing China. You can't hold an empire together with money forever.

Ironically, nationalism is thought of as a conservative idea, but it is in fact a product of the Jacobins, it's a new idea that doesn't actually work when pressed. The idea of a nation is not new, but the idea that the Jacobins presented of nationalism was a revolutionary idea -- literally it was built into their revolution. The problem is that often revolutionary ideas are empirically false. The United States is not the only country that is going to fall apart, we can already see that many European nations are unlikely to remain in their current form for the next century.

All I'm gonna say is that this image of Trump seems to be begging to be defaced. Nuff said.

No!?

Tbills ftw