A media-induced market collapse
Imagine a world where your and my newsfeed is at least minimally balanced and not filled with left-wing scare-mongering.
The Democrat party and legacy media are apoplectic about Donald Trump’s policies, particularly his tariff policy. Trump is taking on an issue that has had universal support among prior Democrat and Republican administrations alike. Democrats and media (but I repeat myself) don’t like how he is going about it. They’re upset that the president is targeting allies, who have taken advantage of America less than China, that he’s disrupting normal order.
Jobs numbers and inflation data don’t support any of this. Consumer confidence is down, as reported by Axios, but notably, Axios indicates that its survey was taken before Wednesday’s and Friday’s market rebound. It also precedes the president’s rollback on most tariffs to 10 percent and any particular news about the 70-plus countries that have reached out to make a deal, yet the media huff and puff at the temerity of the president’s plan to reorder the global economy. How dare the president want a fair deal from our trading partners?
How much of the market drop was due to these dire prognostications? I suspect much of it. How could the average American not worry about Economic Armageddon when TV spokesholes are blathering on about America’s collapse?
Capping the first couple months of the president’s successful second term, his tariff policies are bold. Has he played his tariff strategy as Democrats or feckless Republicans of old would? No, and that’s a good thing.
How many administrations, both Democrat and Republican, proposed or threatened tariffs to reset our free trade model to a more free and fair trade model? All of them. What is the difference now? Donald Trump.
That is a good thing and a bad thing. It is a good thing in that Donald Trump and his advisers know what they’re doing. It is a bad thing...well, because Donald Trump. If Barack Obama had pursued the current strategy, he would have been heralded as a geopolitical genius. Or Bill Clinton or even Joe Biden. Any Democrat pursuing the current strategy would have been hailed as the savior of American industry and jobs.
The Democrat party and the media recognize that a Donald Trump success on the tariffs front would mean an almost certain turnaround in America’s economic fortunes and the further demise of the Democrat party.
The media are doing their damnedest to kneecap the president’s agenda in toto, but now most particularly in the tariff debate. They believe that they have a winning hand, with turmoil in the bond and stock markets. They haven’t factored two things.
One: Seventy-plus countries want negotiations to close their trade imbalances and barriers to entry. This can get resolved by a) the U.S. curtailing future purchases of foreign products or b) an increase (short-term) in the purchase of American-made goods, raw materials, and services.
Aerospace and other military components, advanced computer technology and A.I., agriculture, poultry and beef, oil and gas, liquid natural gas, and the expansion of a myriad of service initiatives — I expect durable goods orders to skyrocket.
Two: Donald Trump. If there is any one person on the planet who has thought more about America’s trade imbalance and possible scenarios for how to fix it, that person is unknown to me. Donald Trump has been railing on “America being taken advantage of” for four decades.
Democrats and media have been dealt their cards, as has the president. They’ve seen the flop (first three shared cards), with the Democrats believing they have the best hand. They are raising the stakes. The president is re-raising. The Democrats and the media are calling what they think is the president’s bluff.
There are two more cards to be dealt. I would not underestimate the president’s resolve.
The question to ask is this: Will the lying media report the president’s successful hand when he announces these trade deals and forces China to heel?
America’s golden age is right around the corner.
As Donald Trump proclaimed, “only the weak will fail.”
Image via PickPik.