Tariff Collapse: How Trump is Hooking the U.S. on the Fed's Needle, and the World is Divided Between Losers and Capitulators.
While Trump declares a trade war on the entire world, the Federal Reserve is quietly buying the collapsing stocks of American corporations. Markets are in panic: the Dow Jones fell 3.4%, the S&P 500 4%, and the Nasdaq (technology sector) 4%.
But instead of canceling tariffs, Trump demands that Powell "cut rates and stop politicizing." In other words, "Print money to hide the consequences of my own war." As a result, the government becomes even more dependent on the Fed, and Wall Street becomes a hostage to the artificial maintenance of the bubble.
At the same time, the world is divided into three camps:
Those who immediately capitulated, like Vietnam, which has already offered zero tariffs instead of losing access to the U.S. market;
Those who are trying to resist, for example, China (34% tariffs on American imports and a case at the WTO) - China has cheap energy resources from Russia and a huge domestic market; Canada, but its dependence on U.S. resources is insurmountable; and the EU, which has no energy or unified strategy, only panic and empty negotiations;
Those who have already lost, for example, Europe – without its own energy resources, with a fragmented economy – will not last even a year.
Who will win in the end? The Fed will gain even more control over the economy. Major U.S. companies will be saved by government injections. China and Russia, whose alliance of oil, gas, and industry is only getting stronger.
At the same time, the losers will be the U.S. middle class (keep in mind inflation and unemployment in the United States), Europe (divided between sanctions and collapse), and Canada (will continue to be an appendix of raw materials).
Trump started a trade war, but will Washington emerge victorious from this battle?