Summary
Despite a temporary pause on some tariffs, economists warn Trump’s trade war continues to pose serious risks to the U.S. economy.
Current import taxes now exceed levels seen during the 1930s Great Depression. A Yale analysis estimates a $2.4 trillion tax increase over 10 years, costing households $4,400 more.
Tariffs on Chinese imports have reached 145%, driving up prices and investor anxiety. Markets briefly surged after Trump’s announcement but quickly fell again.
Critics highlight Trump’s deep misunderstanding of trade mechanics and fear long-term economic damage from persistent uncertainty.
We’re sliding into “just another trading nation” with the bonus of “after having pissed everyone else off” vs the succulent tree we used to be. Top that off with a decade of slow-developing industrial infrastructure, and many of us will be eating cabbage stew. I best most of the people who voted MAGA are gonna be mighty angry once their next pair of shoes costs 50%+.
I’m under the impression that we can expect Bonds to be safe for investments in a couple of years, though? Once Stagflation sets in, that is.
I don’t think long-term US bonds are a good play right now at all, tbh.
Not right now, for sure. I mean in a few years.
Sort of? Bonds will be safer, however it also is incredibly dependent on the forward inflation. The flation part of stagflation. If inflation outstrips your bond’s interest, you’re still losing money. So bonds are way safer than other assets, but sadly in this kind of a situation not really safe either.
Is this a war of attrition scenario? Which boat sinks slower?
That’s not a bad way to put it. Yes, and bonds will sink slower. It just still will sink. I mean, if I were investing at all, it’d be in bonds. However, I’m not going to pretend it’s safe either.
Don’t trust bonds. Buy physical gold. Save it somewhere secure.