Tariffs and Potential Inflation

[OntarioHunter]

Protectionist economics is as outdated as mercantile or colonial economics. It never worked in the past when the US did have sufficient resources to make it halfway work. We live in a global economy today. Protective tariffs will be disastrous for several reasons besides inflation at home. US exports dry up because impacted countries will slap tariffs on US goods = businesses close and unemployment. Natural resources that America must import (e.g. natural gas, aluminum, softwood) will see retaliatory export tariffs to US. All those homes that need to be rebuilt in California, how's that gonna happen without cheap Canadian lumber? Skyrocketing construction costs to rebuild mean skyrocketing insurance premiums. Inflation = climbing interest rates. Add to that ballooning insurance premiums and we will see a total collapse of housing industry and real estate market. Who can afford to buy a new home? Do you think Wall Street will be able to weather that perfect storm?

The guy is a delusional idiot. Perhaps he drank too much Lysol. Totally out of touch with reality. As is everyone who voted him in. But hey, reality is just too boring.

 

[Rie Bread]

Protectionist economics is as outdated as mercantile or colonial economics. It never worked in the past when the US did have sufficient resources to make it halfway work. We live in a global economy today. Protective tariffs will be disastrous for several reasons besides inflation at home. US exports dry up because impacted countries will slap tariffs on US goods = businesses close and unemployment. Natural resources that America must import (e.g. natural gas, aluminum, softwood) will see retaliatory export tariffs to US. All those homes that need to be rebuilt in California, how's that gonna happen without cheap Canadian lumber? Skyrocketing construction costs to rebuild mean skyrocketing insurance premiums. Inflation = climbing interest rates. Add to that ballooning insurance premiums and we will see a total collapse of housing industry and real estate market. Who can afford to buy a new home? Do you think Wall Street will be able to weather that perfect storm?

The guy is a delusional idiot. Perhaps he drank too much Lysol. Totally out of touch with reality. As is everyone who voted him in. But hey, reality is just too boring.

Drill baby drill!

 

[LousyResident]

Protectionist economics is as outdated as mercantile or colonial economics. It never worked in the past when the US did have sufficient resources to make it halfway work. We live in a global economy today. Protective tariffs will be disastrous for several reasons besides inflation at home. US exports dry up because impacted countries will slap tariffs on US goods = businesses close and unemployment. Natural resources that America must import (e.g. natural gas, aluminum, softwood) will see retaliatory export tariffs to US. All those homes that need to be rebuilt in California, how's that gonna happen without cheap Canadian lumber? Skyrocketing construction costs to rebuild mean skyrocketing insurance premiums. Inflation = climbing interest rates. Add to that ballooning insurance premiums and we will see a total collapse of housing industry and real estate market. Who can afford to buy a new home?

The guy is a delusional idiot. Totally out of touch with reality. As is everyone who voted him in. But hey, reality is just too boring.

The broadest brush is best for the job, right? I mean, surely we all have the same order of priorities that influenced our votes.

BTW, how are Canadian politics looking nowadays?

 

[F250]

Protectionist economics is as outdated as mercantile or colonial economics. It never worked in the past when the US did have sufficient resources to make it halfway work. We live in a global economy today. Protective tariffs will be disastrous for several reasons besides inflation at home. US exports dry up because impacted countries will slap tariffs on US goods = businesses close and unemployment. Natural resources that America must import (e.g. natural gas, aluminum, softwood) will see retaliatory export tariffs to US. All those homes that need to be rebuilt in California, how's that gonna happen without cheap Canadian lumber? Skyrocketing construction costs to rebuild mean skyrocketing insurance premiums. Inflation = climbing interest rates. Add to that ballooning insurance premiums and we will see a total collapse of housing industry and real estate market. Who can afford to buy a new home? Do you think Wall Street will be able to weather that perfect storm?

The guy is a delusional idiot. Perhaps he drank too much Lysol. Totally out of touch with reality. As is everyone who voted him in. But hey, reality is just too boring.

I heard Trudeau was not having a Happy New Year !!

 

[Nick87]

Like a pack of coyotes on a lame deer. Lol saw that one comin.

 

[BigHornRam]

Protectionist economics is as outdated as mercantile or colonial economics. It never worked in the past when the US did have sufficient resources to make it halfway work. We live in a global economy today. Protective tariffs will be disastrous for several reasons besides inflation at home. US exports dry up because impacted countries will slap tariffs on US goods = businesses close and unemployment. Natural resources that America must import (e.g. natural gas, aluminum, softwood) will see retaliatory export tariffs to US. All those homes that need to be rebuilt in California, how's that gonna happen without cheap Canadian lumber? Skyrocketing construction costs to rebuild mean skyrocketing insurance premiums. Inflation = climbing interest rates. Add to that ballooning insurance premiums and we will see a total collapse of housing industry and real estate market. Who can afford to buy a new home? Do you think Wall Street will be able to weather that perfect storm?

The guy is a delusional idiot. Perhaps he drank too much Lysol. Totally out of touch with reality. As is everyone who voted him in. But hey, reality is just too boring.

How many btu's in one of your bags of shit? We may need to resort to that to stay warm.

 

[ismith]

Protectionist economics is as outdated as mercantile or colonial economics. It never worked in the past when the US did have sufficient resources to make it halfway work. We live in a global economy today. Protective tariffs will be disastrous for several reasons besides inflation at home. US exports dry up because impacted countries will slap tariffs on US goods = businesses close and unemployment. Natural resources that America must import (e.g. natural gas, aluminum, softwood) will see retaliatory export tariffs to US. All those homes that need to be rebuilt in California, how's that gonna happen without cheap Canadian lumber? Skyrocketing construction costs to rebuild mean skyrocketing insurance premiums. Inflation = climbing interest rates. Add to that ballooning insurance premiums and we will see a total collapse of housing industry and real estate market. Who can afford to buy a new home? Do you think Wall Street will be able to weather that perfect storm?

The guy is a delusional idiot. Perhaps he drank too much Lysol. Totally out of touch with reality. As is everyone who voted him in. But hey, reality is just too boring.

 

[Sytes]

Interesting article. The media chess continues.

China calls for 'win-win' solution to trade tensions

With the threat of a trade war looming, China's first vice premier says the country wants to boost imports.

www.bbc.com

 

[BigHornRam]

Is there a carbon tax on burning your own shit in Canada?

 

[SAJ-99]

Tariffs are coming, but the latest view says 10% on China. Basically this shows the Admin doesn't have the balls to do what they said. 10% could easily be offset by China with a devaluation of the currency (which Bessent hinted at to Congress). Add to that the fact that China's economy is in the tank and a devaluation would actually help them. So they sit back and wait for his majesty's grand proclamation before starting the process with any force. If he starts to impose tariffs on allies, then China will start knocking on their doors looking for new markets. None of this will change anything except in terms of Geopolitics. Trump will be long gone before we see the economic impact of pissing off allies.

The Executive order to end the LNG permitting, declaration of an Energy Emergency and the like is all done to talk down the price of Nat gas, which was $4.20 last week ($3.90 now). Ironically, the reason Biden put on the Exec order last year was to lower nat gas prices. All of this is just show right now. No energy company is going to ramp up drilling without some indication that demand is there, and they know Saudis and OPEC are sitting on excess capacity. The entire energy market feels stuck. Nat gas seems headed back to a 2-handle by Spring. The market remains oversupplied.

 

[mevertsen]

Random thought...

We are at 13.2 +/- million barrels a day oil production in the United States. Record production. Gas price in the range of $3.50 in Northern Nevada. Not sure on the nation wide average.

What more drilling can actually be done? If we are producing record barrels of oil per day, and have been for the last year or so, what policies is Trump going to enact to make. things better on that front?

I don't see drilling companies wanting to drill much more in fear of flooding the market.

Seems more self regulating to me.

 

[RemingtonRules]

Protectionist economics is as outdated as mercantile or colonial economics. It never worked in the past when the US did have sufficient resources to make it halfway work. We live in a global economy today. Protective tariffs will be disastrous for several reasons besides inflation at home. US exports dry up because impacted countries will slap tariffs on US goods = businesses close and unemployment. Natural resources that America must import (e.g. natural gas, aluminum, softwood) will see retaliatory export tariffs to US. All those homes that need to be rebuilt in California, how's that gonna happen without cheap Canadian lumber? Skyrocketing construction costs to rebuild mean skyrocketing insurance premiums. Inflation = climbing interest rates. Add to that ballooning insurance premiums and we will see a total collapse of housing industry and real estate market. Who can afford to buy a new home? Do you think Wall Street will be able to weather that perfect storm?

The guy is a delusional idiot. Perhaps he drank too much Lysol. Totally out of touch with reality. As is everyone who voted him in. But hey, reality is just too boring.

The tariffs put in place during the last term did not get repealed by the last administration. Looks like all are in agreement.

 

[RemingtonRules]

Random thought...

We are at 13.2 +/- million barrels a day oil production in the United States. Record production. Gas price in the range of $3.50 in Northern Nevada. Not sure on the nation wide average.

What more drilling can actually be done? If we are producing record barrels of oil per day, and have been for the last year or so, what policies is Trump going to enact to make. things better on that front?

I don't see drilling companies wanting to drill much more in fear of flooding the market.

Seems more self regulating to me.

Check how much the last administration drained the strategic oil reserves. We are in a precarious spot. Plus, where did that oil go if we produced so much?

 

[noharleyyet]

We need Canadian political arbitrage like a fish needs a bicycle.

 

[Nick87]

We need Canadian political arbitrage like a fish needs a bicycle.

Lmfao.

 

[ismith]

We need Canadian political arbitrage like a fish needs a bicycle.

Enough bicycles dumped into a lake would make mighty fine spawning habitat. Obviously, you would have to pile them together though.

 

[mevertsen]

Check how much the last administration drained the strategic oil reserves. We are in a precarious spot. Plus, where did that oil go if we produced so much?

Ok. I did that. Looks like it dropped a fair amount under Trump 1, more under Biden, and then has started a recovery. Two charts attached.

In the last year, we have increased our reserves, and we are at record production. Logic tells me if we just continue at our current rate, we will continue to increase the reserve.

Still doesn't really answer my question.

How much more drilling can be done before the market is flooded?

What is Trump going to do differently than Biden to improve the situation?

Where did it go?

Have you traveled lately? We use it.

 

[noharleyyet]

Enough bicycles dumped into a lake would make mighty fine spawning habitat. Obviously, you would have to pile them together though.

Five lb bass lyrics right there.

 

[RemingtonRules]

Ok. I did that. Looks like it dropped a fair amount under Trump 1, more under Biden, and then has started a recovery. Two charts attached.

In the last year, we have increased our reserves, and we are at record production. Logic tells me if we just continue at our current rate, we will continue to increase the reserve.

Still doesn't really answer my question.

How much more drilling can be done before the market is flooded?

What is Trump going to do differently than Biden to improve the situation?

Where did it go?

Have you traveled lately? We use it.

Not sure your source. The gov website shows it dropping substantially over the last 4 months.

Can’t be US consumption, electric cars solved that. Maybe there is a country at war that needs it, hmm.

 

[mevertsen]

Not sure your source. The gov website shows it dropping substantially over the last 4 months.

Can’t be US consumption, electric cars solved that. Maybe there is a country at war that needs it, hmm.

Source was Wikipedia

You have replied twice but haven't answerd the question.

What is Trump going to do differently than Biden to improve the situation?

Serious question. Not being sarcastic. I would like to know because I don't understand.