5 rate cuts 😮

[u/abishop717]

[u/suspense99]

Would you explain to me who is trying to understand this? Why would trump want this? Trying to figure out his end goal. I'm trying to learn

[u/idunnoiforget → u/suspense99]

Listen to what Trump says about it. He wants other countries to pay their fair share through the tarrifs and stop taking advantage of America and bring back American manufacturing. And if you assume that he is not lying and means what he says then the only real logical conclusion is that he is an illiterate moron with an understanding of economics that is less than that of a second grader.

The finance YouTubers will have you believe he's intentionally crashing the economy in a 4D chess move to force the Fed to lower rates so that the national dept can be financed at a lower interest rate.

And there's the theory that he's crashing markets so he and his rich friends can buy up things for pennies on the dollar and basically copy paste the oligarch structure that was formed in Russia after the collapse of the Soviet Union.

Realistically it could be a combo of the above

[u/AGI2028maybe → u/idunnoiforget]

I think any of the 4d chess theories are pretty dumb. The “they crash it to buy it for cheap” is particularly stupid. Elon Musk is probably going to end up losing over $100,000,000,000 (if not way more) from this lol. There’s no way this is going to be net positive for him. The “oligarchs” wealth is in the stock market so crashing it so they can buy things for cheaper is robbing Peter to pay Paul.

The reality is just: Trump isn’t very informed and is stuck in the past. He rightly recognizes that free trade is a race to the bottom that ends with us losing jobs to essential slave labor in undeveloped countries. Buts he’s also rash and stupid and belligerent so he can’t intelligently target the worst offenders and instead just indiscriminately tariffed everyone.

TLDR: Trump correctly identifies a problem (that other countries are disinclined to see due to the wealthy not wanting anything to change) but is also a stupid person so he puts forth a solution that’s even worse.

[u/Capitalist_Space_Pig → u/AGI2028maybe]

"He rightly recognizes that free trade is a race to the bottom that ends with us losing jobs to essential slave labor in undeveloped countries."

This is offset by the other longstanding pillar of U.S. foreign policy, which was to encourage democratic governments in all countries. Much harder to race to the bottom if the slave labor can vote.