The consensus of economists and investors is that tariffs will put upward pressure on inflation while tax cuts could spur growth and add to deficits, together tending to nudge interest rates higher. And indeed, long-term Treasury bond yields had risen recently on strong economic data and Trump’s improved polling, and shot up early Wednesday, along with stock-index futures, as Trump’s victory became apparent.
When a country starts a war, it recognizes that it will suffer damage in order to achieve victory. It starts the war anyway because it has calculated that it will cause its enemy more damage.
ReplyDeleteTrump is starting an economic war against Canada and Mexico because of border, trade and drug issues. He's going after China because of their drug and trade issues. He has calculated that even though the US will suffer, the other countries will suffer more and bow to his demands.