On Liberation Day – The Economist:
‘Mr Trump called it one of the most important days in American history. He is almost right. His “Liberation Day” heralds America’s total abandonment of the world trading order and embrace of protectionism. The question for countries reeling from the president’s mindless vandalism is how to limit the damage.’
(…)
‘On economics Mr Trump’s assertions are flat-out nonsense. The president says tariffs are needed to close America’s trade deficit, which he sees as a transfer of wealth to foreigners. Yet as any of the president’s economists could have told him, this overall deficit arises because Americans choose to save less than their country invests—and, crucially, this long-running reality has not stopped its economy from outpacing the rest of the g7 for over three decades. There is no reason why his extra tariffs should eliminate the deficit. Insisting on balanced trade with every trading partner individually is bonkers—like suggesting that Texas would be richer if it insisted on balanced trade with each of the other 49 states, or asking a company to ensure that each of its suppliers is also a customer.’
(…)
‘As stockmarket futures tumbled, shares in Nike, which has factories in Vietnam (tariff: 46%) fell by 7%. Does Mr Trump really think Americans would be better off if only they sewed their own running shoes?’
(…)
‘One question is whether to retaliate. Politicians should be cautious. Pace Mr Trump, trade barriers harm those who put them up. Because they are more likely to cause Mr Trump to double down than retreat, they risk making things worse—possibly catastrophically so, as in the 1930s.’
Read the article here.
Again, I do believe Mr. Trump is punishing his fellow Americans because they don’t deserve his enlightenment.
They will have to go through darkness first, in order to see the light. It’s all very biblical.
Out of prudence, I cannot answer the question here whether Mr. Trump is a false or a true prophet.
The future will tell.
In the meantime we should try to live with the real existing prophets or move to Montreal.