Trumps Tariffs

[stilllearning]

Debt monetization .... QE?

https://twitter.com/i/web/status/1930865407302279675

QE is when the Fed or Central Bank buys gov debt. A buy back what happens is Treasury will list that it is doing a buyback and then will list the eligible treasuries with the par amount they will pay. There are different reasons they will do this is mainly just a debt management tool.

They can buy back older debt with a higher interest rate then issue new debt with a lower one. They can also buy back debt for a new maturity date. Say they want to have all of certain amount of debt come due on the same day. So they will buy up older debt with different maturing dates. Reissue new debt at the same amount but all with the same maturity date.

They have been buying smaller amounts of debt up for awhile now. They have been doing so just to mainly test the system or operation to have the kinks worked out and to make sure it will work.

I believe they also use it to inject liquidity. Sort of like a repurchase agreement or a repo. What a repo is say you are Bank of X and you have withdrawals or cash obligations that exceed what you have cash on hand. You will sell your treasuries to the Fed or another bank overnight just to get liquidity or cash. Then the next day buy them back with minimal interest.

If you ever notice money market accounts pay usually just a little higher interest than other types of cash accounts this is why they tend to do repos.

I am not sure of the exact amount but when the government goes to auction for it's debt they have a minimum that they want bought. If not enough buyers then the banks that are set up so investors can buy through them. They are on the hook for the amount that is short the minimum. So they buy it up. If they get where they no longer have enough liquidity for upcoming auctions. Then Treasury can buy back some of what they hold so they have cash on hand.

 

[true_believer]

When Americans start paying more & more for things, I wonder what alibis his devotees will come up with this time around?

 

[Eli1]

When Americans start paying more & more for things, I wonder what alibis his devotees will come up with this time around?

There is no alibi in loyalty genius.
They will pay $100 for a dozen eggs and tell you to “suck it”, just like Kristi Noem said and you guys lost your minds as usual.

 

[Kroogz]

When Americans start paying more & more for things

Where have you been? Seriously, you been living under a rock?

 

[Kroogz]

There is no alibi in loyalty genius.
They will pay $100 for a dozen eggs and tell you to “suck it”, just like Kristi Noem said and you guys lost your minds as usual.

I lived in South Dakota during the scamdemic. Kristi Noem was a rock star through that whole scam on the American people.

 

[true_believer]

Many more U.S. companies will probably do the same.

 

[true_believer]

Where have you been? Seriously, you been living under a rock?

Definitely not living in the MAGA fantasy land.

 

[ZNP]

Definitely not living in the MAGA fantasy land.

Says the guy dressed up as Deadpool.

 

[ResidentAlien]

Many more U.S. companies will probably do the same.

Thanks Donald. This is what happens when you have a pretend president instead of an actual one.

 

[ZNP]

Thanks Donald. This is what happens when you have a pretend president instead of an actual one.

Thanks RA this post is what happens when you have pretend analysis. We have been working towards AI since Turing, and we shifted into fourth gear after 911.

The global situation is not the fault of FDR anymore than it is of Ronald Reagan, or George Bush, or Donald Trump.

We have been moving towards this point for the last 77 years like a train getting faster and faster.

You can argue that the elites want Trump in office at this time to help distract and mollify the conservative Christians who they no doubt see as the biggest impediment to their plan of one world government with complete surveillance and control.

 

[HeIsHere]

Definitely not living in the MAGA fantasy land.

You mean the big beautiful bill is not going to fix everything and usher a new golden age?
Say it ain't so.

Reality is..... they are not "conservative" but only anti-left with no real vision for the future ... oh wait.. yes the vision is a technocracy.

 

[stilllearning]

Are they going to strengthen our Economy, or weaken it?

Are they going to drive up the cost of pretty much everything?

IMO, they are going to end up hurting the average person. Especially low income people/families. There is no way the Manufacturers are going to "eat the rising cost" of producing their product(s). They are going to do what they always do, PASS IT ON!

Honestly, I do not understand Trumps thinking on this. Tariffs never help in the way those imposing them want. Buckle up and start cutting Coupons now..... sigh ...........

I sure hope so. I don't mind the tariffs because I agree with the founders and do not believe in directly taxing peoples income. So I found Trumps tariffs as a another form of a sales tax which I am in favor off. However, I missed it until this weekend. Was listening to his Memorial Day speech and his words how he is like Harding.

So it got me curious as I knew that Harding had passed tariffs. What I forgot about was the depression of 1920-1921. Once I saw this it makes sense what he is doing and his economic plan.

Going back to 1800's the development of German thought on economics the two main and only real mainstream thoughts that persist today are the macro and the micro. Prussia had developed the macro and Austria the micro. Macro or what we call Keynesian economics is what we have been living since the great depression.

Most of our economist today are macro because our government is. Government is the biggest employer of economist directly and indirectly through grants hence why so many fall into that camp. Also why we are always in a war time economy and always have to have such a big defense budget. Also why we have to keep growing government.

Trumps economic view is also tied to his view on war and peace. After WW1 we had a problem as all the men coming home that would need jobs and factories were being shut down or in the transition from making war goods to consumer goods.

Needless to say these challenges sent us into a depression in 1920. Well Harding, he passed tariffs along with cutting taxes and that brought on the roaring 20's which was one of our most prosperous times. So he is wanting to move us from a constant war time economy where we have to either be in a war or arming for a war or arming the world and fighting proxy wars.

So he is wanting to move us from macro economics. To the model that he being a business man and one our nation was prior, to a micro or Austrian economic model. Why when he says that he wants to transform Gaza into a business district and folks laugh. What he is wanting is to have the world looked through a prism of peace and prosperity as united and the goal. Using economics for that goal. So I sure hope it works but not sure it will since the majority is trained and employed in macro and war and they only see that way forward as the goal.

I hope this makes sense as I wanted to just hit on main objectives because to fully explain it all such as how money supply and debt and etc. would make this post perhaps pages long.........LOL

 

[HeIsHere]

So he is wanting to move us from a constant war time economy where we have to either be in a war or arming for a war or arming the world and fighting proxy wars.

Performative.

 

[ZNP]

A Crisis without Keynes: the 1975 New York City Fiscal Crisis Revisited
By Michael Beyea Reagan
The 1975 New York City fiscal crisis gets lots of historical and political attention, and rightly so. It was a turning point not just in city history, but in the history of US political economy; the crisis helped change the course of the nation. The slow turn away from the social and deficit spending of Keynesianism and toward neoliberalism and austerity were accelerated by the collapse of financing in New York. In the spring and summer of 1975, when facing a citywide economic depression and failing bond markets, the city decided to cut its budget, impose austerity, and rely on a new fiscal logic to “save the city.” This paved the way for similar approaches in other cities, and by the end of the decade and into the Reagan presidency the policy of austerity was increasingly used at the local and federal levels.
Many historians have sought to understand the crisis, most recently Kim Phillips-Fein in her excellent Fear City: New York’s Fiscal Crisis and the Rise of Austerity Politics. Phillips-Fein deftly shows how the move to austerity was less about fiscal necessity and more of a political choice, one laden with the contingent crises and rightward political drift of banks and businesses in the 1970s. She cogently argues that budgets are political, moral documents, and that they pose “inescapably political questions,” rather than strictly “accounting ones” to politicians and the public.
Phillips-Fein is right, but a detailed look at the budgets of the city reveals something deeper. By historicizing city budgets we can see that deficits were at historic lows in the 1970s compared to the overruns at the height of the Keynesian period in the 1960s. This tells us that rather than fiscal necessity driving austerity in the 1970s, it must have been other considerations that changed the fate of the city. In 1975, New York faced a classical Keynesian crisis, a depression in the real economy and a market failure in municipal bond financing, but it was a crisis without a Keynesian response. Instead of the state spending money to weather the downturn and grow through the trough, as was done in the 1960s, the city implemented a harsh form of austerity that cut jobs and services to the bone.


50 years ago we got a preview of what an austerity budget does to a government when it is already leveraged to the max. NYC basically went bankrupt. DOGE may cause the same thing again, only on a bigger scale.

 

[HeIsHere]

Macro or what we call Keynesian economics is what we have been living since the great depression.

I am also not sure why you think macro economics is Keynesian economics?

 

[stilllearning]

Performative.

I don't believe so it is just a harder task than just simple comments on a message board can detail. Problem is we are an empire and so we have been acting like an empire for to long and to right this ship will take more than just one man. Which the majority clearly is not of the same view.

 

[stilllearning]

I am also not sure why you think macro economics is Keynesian economics?

Because it is.

What Is Keynesian Economics?
Keynesian economics is a macroeconomic theory of total spending in the economy and how it affects output, employment, and inflation. It was developed by British economist John Maynard Keynes during the 1930s in an attempt to deal with the effects of the Great Depression.

https://www.investopedia.com/terms/k/keynesianeconomics.asp

 

[HeIsHere]

I don't believe so it is just a harder task than just simple comments on a message board can detail. Problem is we are an empire and so we have been acting like an empire for to long and to right this ship will take more than just one man. Which the majority clearly is not of the same view.

Agree on the empire part, his rhetoric with regards to tariffs / trade deficits has been outside of reality starting with his dumb equation.

 

[HeIsHere]

Because it is.

What Is Keynesian Economics?
Keynesian economics is a macroeconomic theory of total spending in the economy and how it affects output, employment, and inflation. It was developed by British economist John Maynard Keynes during the 1930s in an attempt to deal with the effects of the Great Depression.

https://www.investopedia.com/terms/k/keynesianeconomics.asp

It is one theory, not the only theory.

 

[stilllearning]

It is one theory, not the only theory.

It is the most widely accepted and used the world over. Also the majority taught in higher education. Also gaining ground is modern money theory also macro. Like I said majority employed and studied is macro and new thoughts are mainly just looking at it in a different light.