Federal workers need to be prepared for more pain. If President Trump and Congress cannot make a deal, there will probably be another very painful government shutdown in just a couple of weeks. Even though he agreed to temporarily reopen the government, President Trump made it abundantly clear that there would be no long-term deal without wall funding, and that wall funding is supposed to be part of the current negotiation process in Congress. But according to Nancy Pelosi, that isn’t even on the table, and she told a press conference on Thursday that there is “not going to be any wall money in the legislation”…
In every war there is a high price to pay, and this trade war will not be any different. The normal flow of goods and services around the globe is being severely disrupted, and even though this trade war has barely just begun, it is already having an enormous impact on the U.S. economy. Even if we ultimately win this trade war and the Trump administration is able to achieve all of the goals that it is targeting, there will still be a great cost in the short-term. We are going to see businesses fail, we are going to see workers get laid off, and global economic activity will inevitably contract. Heck, at this point even Fox News is calling this trade war “economic suicide”. We live at a time when a delicately balanced formula of economic factors allows us to live a debt-fueled standard of living that is far beyond what we actually deserve. Now we are messing with that formula, and the consequences are likely to be far more severe than most Americans are anticipating.
The trade war has barely just begun, and yet significant ripple effects are already being felt all across the U.S. economy. Once thriving businesses are on the verge of failure, workers are being laid off, and some sectors of the economy are witnessing enormous price hikes. Right now the mainstream media is absolutely fixated on the drama surrounding the recently concluded Trump-Putin summit meeting, but the consequences of this trade war will ultimately be far more important for the lives of most ordinary Americans. As more tariffs continue to be implemented, this will perhaps be the biggest disruption to the global economic system that we have seen in decades. Perhaps you have not been affected personally yet, but for many Americans this trade war has changed everything. For example, just consider the plight of soybean farmer Tim Bardole…
If Americans really understood how much their standard of living was about to change, the streets of our major cities would be packed with protesters by tomorrow morning. For the past several decades, China and other low cost exporters have been flooding our shores with hundreds of billions of dollars worth of cheap goods. This is the only reason why you can go to Wal-Mart and buy a shirt for three bucks. But since we buy far more stuff from the rest of the world than they buy from us, we ultimately have to go back to those other nations and beg them to lend our money back to us so that we can pay our bills. This sick, twisted co-dependent relationship has enabled Americans to live a debt-fueled standard of living that is far beyond what we deserve, and now our rapidly escalating trade war with China is going to bring the party to a crashing halt. On Tuesday, the Trump administration released a list of $200,000,000,000 worth of Chinese exports that will be hit with 10 percent tariffs. Those tariffs are in addition to the 25 percent tariffs that had previously been announced on 50 billion dollars worth of Chinese exports. These new tariffs are scheduled to go into effect on August 30th, and the Chinese have already pledged to retaliate.
Nothing is going to be the same after this. On Friday, the United States hit China with 34 billion dollars in tariffs, and China immediately responded with similar tariffs. If it stopped there, this trade war between the United States and China would not be catastrophic for the global economy. But it isn’t going to stop there. Donald Trump is already talking about hitting China with an additional 500 billion dollars in tariffs, which would essentially cover pretty much everything that China exports to the U.S. in a typical year. The Chinese have accused Trump of starting “the biggest trade war in economic history”, and they are pledging to fight for as long as it takes. As I discussed yesterday, the only way that one side is going to “win” this trade war is if the other side completely backs down, and that simply is not going to happen. So there is going to be economic pain, and that pain is likely to intensify for as long as this trade war persists. U.S. businesses that will be affected by foreign tariffs are already cutting back production and laying off workers, and CNN is reporting that 1,300 products have suddenly become more expensive for U.S. consumers. There will be nowhere that anyone can hide from this trade war, and it will ultimately affect every single man, woman and child in the entire country.
Up until now, the U.S. trade war with China has simply been a bunch of threats and counter-threats, but now things are about to get very real. On Friday, the first round of U.S. tariffs on Chinese goods becomes official, and these tariffs are going to fundamentally alter the economic relationship between the two largest economies on the entire planet. Over the past several decades, U.S. consumers have loved gobbling up super-cheap goods from China, and the Chinese have used many of the dollars that they have been accumulating to fund our exploding national debt. This symbiotic relationship has been bad for the United States in a lot of ways, and something had to be done, but in the short-term this trade war is going to be enormously painful. Sadly, most Americans are completely oblivious to what is happening. The following comes from Bloomberg…
It is difficult to find the words to describe just how serious America’s trade war with China is becoming. As you will see below, the two largest economies on the entire planet are on a self-destructive course that almost seems irreversible at this point. The only way that this trade war is going to come to a rapid conclusion is if one side is willing to totally submit and accept an extremely bitter and humiliating defeat on the global stage, and that is not likely to happen. So in the short-term, and probably beyond that, we are going to experience a tremendous amount of economic pain. In fact, if one wanted to create a recipe for economic disaster, it would be hard to beat having the Federal Reserve dramatically raise interest rates at the exact same time that the U.S. government is starting trade wars with all of the other major economic powers simultaneously. Unless something drastically changes in the very near future, there is no way that the U.S. is going to be able to get through this without experiencing severe pain.
Thanks to Colin Kaepernick, the playing of the national anthem before a sporting event is never going to be the same again. At first there was a vicious backlash against Kaepernick for refusing to stand for the national anthem, but now large segments of the population are enthusiastically embracing him and his cause. This week, Kaepernick’s jersey became the top selling jersey in the entire NFL. If it wasn’t for this controversy that would be very odd, because Kaepernick has played very, very poorly over the past couple of years.
In our upside down world, evil has become good and good has become evil. Once upon a time, everyone in society generally knew what was “right” and what was “wrong” even if they didn’t always abide by the rules. But now the rules have been totally flipped on their head. If you choose to live a lifestyle that is morally wrong, you are celebrated by society, and if you choose to speak out against the sexual sin that is exploding everywhere around us then you are considered to be a “hater” and a “bigot”. In fact, governments all over the world are now passing “hate speech” laws that are making it a crime to speak out against sexual sin. With each passing year it gets even worse, and those pushing this agenda forward are never going to be satisfied until those standing up for Biblical truth are locked away in prison.
What just happened in Turkey? I have been thinking about this for a number of hours now, and I have narrowed it down to two options. Either this was the worst military coup in my entire lifetime, or it was staged. I will explain how I came to this conclusion below, but in any event the end result of this “coup” is that President Erdogan is even more popular and has consolidated power to an extent that is absolutely breathtaking. He already was essentially a dictator, but now this “coup” has sealed Turkey’s fate and has pushed them even farther down the path toward becoming a radical Islamic state.