Red Mosquito

dimejinky99 wrote:

BurtReynolds wrote:

dimejinky99 wrote:Timely reminder

The DEI caused the plane crash narrative is a distraction. The tariffs are a distraction. Whatever insane nonsense Trump spews that the media will chase like cats chasing a laser light is a distraction. The only story that counts right now is the wholesale hijacking of control of the US government.

That last part is the best part and shouldn't be distracted from. I don't buy into this "distraction" thing - I don't think Trump is that cunning, and I also don't think he cares - but if he is making up distractions, he should stop distracting from things a lot of people want.

Does the ordinary American care about any of that though? That’s very much a tweet and thinking from inside the agenda bubble.

4/5 wrote:Fun fact: if a country has a "trade deficit" with one country, they by definition have a capital and financial surplus with that country. All a trade deficit means (take US and Canada) is that Americans prefer buying Canadian goods while Canadians prefer buying American financial assets. Which, oh btw, has the effect of lowering interest rates in the U.S.

And that means, yup you guessed it, that if that trade deficit were to turn into a trade surplus, that there would be a capital and financial deficit with Canada, pushing domestic interest rates up. Those same interest rates that Trump "demands" be lowered.

McParadigm wrote:

4/5 wrote:Fun fact: if a country has a "trade deficit" with one country, they by definition have a capital and financial surplus with that country. All a trade deficit means (take US and Canada) is that Americans prefer buying Canadian goods while Canadians prefer buying American financial assets. Which, oh btw, has the effect of lowering interest rates in the U.S.

And that means, yup you guessed it, that if that trade deficit were to turn into a trade surplus, that there would be a capital and financial deficit with Canada, pushing domestic interest rates up. Those same interest rates that Trump "demands" be lowered.

Thank you for this post. It is informative for me.

Bi_3 wrote:

McParadigm wrote:

4/5 wrote:Fun fact: if a country has a "trade deficit" with one country, they by definition have a capital and financial surplus with that country. All a trade deficit means (take US and Canada) is that Americans prefer buying Canadian goods while Canadians prefer buying American financial assets. Which, oh btw, has the effect of lowering interest rates in the U.S.

And that means, yup you guessed it, that if that trade deficit were to turn into a trade surplus, that there would be a capital and financial deficit with Canada, pushing domestic interest rates up. Those same interest rates that Trump "demands" be lowered.

Thank you for this post. It is informative for me.

Yeah, great post. But then what's the thought behind retaliatory tariffs?

E.H. Ruddock wrote:

Bi_3 wrote:

McParadigm wrote:

4/5 wrote:Fun fact: if a country has a "trade deficit" with one country, they by definition have a capital and financial surplus with that country. All a trade deficit means (take US and Canada) is that Americans prefer buying Canadian goods while Canadians prefer buying American financial assets. Which, oh btw, has the effect of lowering interest rates in the U.S.

And that means, yup you guessed it, that if that trade deficit were to turn into a trade surplus, that there would be a capital and financial deficit with Canada, pushing domestic interest rates up. Those same interest rates that Trump "demands" be lowered.

Thank you for this post. It is informative for me.

Yeah, great post. But then what's the thought behind retaliatory tariffs?

lol @thought

McParadigm wrote:I think you should both consider the possibility that neither side’s actions are being driven by a presumption of inherent economic gain.

Donald Trump is using tariffs to punish other countries by doing them harm. And he is openly saying that it is OK that it also harms Americans, because it gets the end result that he wants.

Canada is using tariffs as a show of oppositional solidarity and because they know that Trump‘s supporters in America will see it as a return fire.

Bi_3 wrote:

McParadigm wrote:I think you should both consider the possibility that neither side’s actions are being driven by a presumption of inherent economic gain.

Donald Trump is using tariffs to punish other countries by doing them harm. And he is openly saying that it is OK that it also harms Americans, because it gets the end result that he wants.

Canada is using tariffs as a show of oppositional solidarity and because they know that Trump‘s supporters in America will see it as a return fire.

I really dont understand it because it seems like the net effect is just to punch Canadians twice

E.H. Ruddock wrote:Looks like he's pausing the tariffs on Mexico for a month.

McParadigm wrote:

Bi_3 wrote:

McParadigm wrote:I think you should both consider the possibility that neither side’s actions are being driven by a presumption of inherent economic gain.

Donald Trump is using tariffs to punish other countries by doing them harm. And he is openly saying that it is OK that it also harms Americans, because it gets the end result that he wants.

Canada is using tariffs as a show of oppositional solidarity and because they know that Trump‘s supporters in America will see it as a return fire.

I really dont understand it because it seems like the net effect is just to punch Canadians twice

No, the point is to ensure that Canadian citizens feel like their government is punching back, in order to create a climate of national resolve. It is the sacrificing of capital in exchange for political will.

4/5 wrote:

McParadigm wrote:

Bi_3 wrote:

McParadigm wrote:I think you should both consider the possibility that neither side’s actions are being driven by a presumption of inherent economic gain.

Donald Trump is using tariffs to punish other countries by doing them harm. And he is openly saying that it is OK that it also harms Americans, because it gets the end result that he wants.

Canada is using tariffs as a show of oppositional solidarity and because they know that Trump‘s supporters in America will see it as a return fire.

I really dont understand it because it seems like the net effect is just to punch Canadians twice

No, the point is to ensure that Canadian citizens feel like their government is punching back, in order to create a climate of national resolve. It is the sacrificing of capital in exchange for political will.

Yeah, this. Tariffs only make sense insofar as they advance a political goal. They're terrible economic policy.

Bi_3 wrote:

4/5 wrote:

McParadigm wrote:

Bi_3 wrote:

McParadigm wrote:I think you should both consider the possibility that neither side’s actions are being driven by a presumption of inherent economic gain.

Donald Trump is using tariffs to punish other countries by doing them harm. And he is openly saying that it is OK that it also harms Americans, because it gets the end result that he wants.

Canada is using tariffs as a show of oppositional solidarity and because they know that Trump‘s supporters in America will see it as a return fire.

I really dont understand it because it seems like the net effect is just to punch Canadians twice

No, the point is to ensure that Canadian citizens feel like their government is punching back, in order to create a climate of national resolve. It is the sacrificing of capital in exchange for political will.

Yeah, this. Tariffs only make sense insofar as they advance a political goal. They're terrible economic policy.

What is that political goal that defenseless Canadian citizens are going to be made to suffer for? Pride?

Bi_3 wrote:

4/5 wrote:

McParadigm wrote:

Bi_3 wrote:

McParadigm wrote:I think you should both consider the possibility that neither side’s actions are being driven by a presumption of inherent economic gain.

Donald Trump is using tariffs to punish other countries by doing them harm. And he is openly saying that it is OK that it also harms Americans, because it gets the end result that he wants.

Canada is using tariffs as a show of oppositional solidarity and because they know that Trump‘s supporters in America will see it as a return fire.

I really dont understand it because it seems like the net effect is just to punch Canadians twice

No, the point is to ensure that Canadian citizens feel like their government is punching back, in order to create a climate of national resolve. It is the sacrificing of capital in exchange for political will.

Yeah, this. Tariffs only make sense insofar as they advance a political goal. They're terrible economic policy.

What is that political goal that defenseless Canadian citizens are going to be made to suffer for? Pride?

Farmer John wrote:Can we all just take a moment to acknowledge how quickly this escalated? Like, what the fuck are we doing here?

Farmer John wrote:

Bi_3 wrote:

4/5 wrote:

McParadigm wrote:

Bi_3 wrote:

McParadigm wrote:I think you should both consider the possibility that neither side’s actions are being driven by a presumption of inherent economic gain.

Donald Trump is using tariffs to punish other countries by doing them harm. And he is openly saying that it is OK that it also harms Americans, because it gets the end result that he wants.

Canada is using tariffs as a show of oppositional solidarity and because they know that Trump‘s supporters in America will see it as a return fire.

I really dont understand it because it seems like the net effect is just to punch Canadians twice

No, the point is to ensure that Canadian citizens feel like their government is punching back, in order to create a climate of national resolve. It is the sacrificing of capital in exchange for political will.

Yeah, this. Tariffs only make sense insofar as they advance a political goal. They're terrible economic policy.

What is that political goal that defenseless Canadian citizens are going to be made to suffer for? Pride?

What would you suggest our course of action should be? Bear in mind that we don't want our country to cease to exist.

Can we all just take a moment to acknowledge how quickly this escalated? Like, what the fuck are we doing here?

4/5 wrote:

Farmer John wrote:Can we all just take a moment to acknowledge how quickly this escalated? Like, what the fuck are we doing here?

Well the "pause" on the Mexico tariffs might mean that Trump just wants to make a deal of some sort to take a victory lap before tariffs actually go into effect. That's best case scenario IMO.