Black Monday – The ongoing impact of Trump’s tariffs

Here it is, Sunday afternoon.  Trump put in his tariffs last Thursday and we saw the stock market take record-setting dives as Trump headed off to the golf course.

To mark the success of these tariffs, hundreds of thousands of people protested yesterday in an event billed as 50 protests in 50 states in one day.

Now, the Republican Party and Trump and Musk…all in the same bag of corruption, have stated that these protests were nothing more than just paid actors.  In other words, the Democrat party hired hundreds of thousands of people to protest and then paid them after getting 100% of the participants to agree not to tell anyone.

I’m more inclined to believe the world is flat.

This is a common theme for MAGA.

1. If there is a protest, it is staged by paid actors
2. If a townhall goes south on a Republican….paid actors
3. If an election is lost…stolen
4. If corruption is investigated…witch-hunt
5. If they are caught red-handed…they blame Biden

Speaking of blaming Biden, one of Trump’s reasons for the tariffs is that he inherited an economy in freefall.  Joe Biden ruined the economy and now only Trump can save us.

Here is the cover of the Economist Magazine from October 2024.  This is the leading authority on economics In the World.

This seems to be at odds with what Trump is saying

I’ve noticed that my posts are getting a little longer and longer.  Not what I had in mind.  I’m trying to find my voice, not bore you to death.

So, let’s get to my main point for today…

Monday, April 7^th is going to be a very bad day for the market.

There are a couple of reasons for this.

1. The market usually anticipates events. For example, if interest rates are expected to rise, the market will make adjustments days in advance once this consensus opinion has been reached.
2. Thursday and Friday we reflections of the market saying, “I can’t believe he did it.”
3. Monday, the correction will continue because
   1. Trump is claiming that things are going great and according to plan
   1. The House Republicans have abdicated their responsibility to stop this insanity.
   1. China has retaliated and others will certainly follow.
   1. More and more people are waking up and saying, “Where did my retirement funds go?”  Forget the price of eggs.  You are going to have to work into your 80s

Trump will pull back eventually.

Russia, one of the few countries he didn’t put a tariff on is suffering.  Global oil prices have taken a nose-dive.  As goes oil, so goes the Russian economy.  Unless of course, the market for frozen tundra suddenly surges.

Puttin will tell Trump to back off and Trump will do as he is told.

Trump will claim he had the “most beautiful call” from someone and that changed his mind.  The call, of course, never happened but it lets Trump claim victory from an economic disaster he created.

To keep this from happening again, we must remember who the true enablers are – The Republicans in both the House and the Senate have abdicated their role in the balance of power. 

If you voted for a Republican, this economic crisis is on you.