The Tariff Hoo-hah

Trump did this, Trump did that. The Trump Effect. Trump is purposely collapsing the economy. Trump is saving the economy. The tariffs will lead to war. The tariffs will lead to peace. Trump is sticking it to Wall Street. Trump is working for Wall Street.

Many observers, pro and con, are assuming a tight causal linkage between two events: the implementation of the tariffs and the wild fluctuations in the financial markets. As the commentariat bloviates on the situation, they forget that correlation is not causation.

President Trump and his associates are not causing anything. On the contrary, they are struggling to keep pace with a rapidly changing landscape that is mostly beyond their control, and for which the die was cast well before the advent of Trump 2.0. Like a person sinking into quicksand, the Administration will grasp at any stick within reach.

Here is the quicksand they stepped into: The mother of all bubbles, an agglomeration of bubbles such as the world has never seen. A financial bubble. A debt bubble. A real estate bubble. A bubble of lies and fraud. A bubble of Progressive ideology, of Keynesianism, of central control, of fake science, of media propaganda. Of pure idiocy, of hypocrisy, of insanity. This megabubble is at its bursting point; a balloon in search of a pin.

The tariffs are related to the bursting bubble, but not in the way that many think. Sure, they might advance or postpone certain aspects of the bursting, but those aspects are baked into the cake. Looking at the big picture, the imposition of these trade restrictions is an attempt to outwit processes that are already in motion. The Trump policy is not causing the stock market to be unstable, nor is it causing the demise of free trade and the Bretton Woods economic order; it is rather a reaction to the crumbling of the order and its constituent parts, a movement that has been accelerating for several years.

The post-World War II international order, led by the United States, is dead as a doornail, with or without tariffs. The West is bankrupt, financially and in every other sense of the word. The financial system is a house of cards. NATO has been defeated in Ukraine. Europe is ruled by shrieking hags and ghoulish fanatics.

Meanwhile, the BRICS countries are severing their connection with the Western system of global economic fraud. They no longer want to play the game of make-believe. Thus the frantic accumulation of gold, the anti-bubble par excellence. (The BRICS may end up with their own fraudulent system, but it will be their fraudulent system.)

​The tariffs are a reaction to this massive realignment. The Titanic is sinking, and this is a handy lifeboat, albeit one that has been in mothballs for a while. Will it really help rebuild manufacturing in the U.S.? I certainly hope so, because the extreme market volatility is only the start of the Great Bursting. The phony-baloney financialized economy, along with its ecosystem of institutionalized grift, is disintegrating before our eyes. When it’s all said and done, the only edifice left standing may very well be manufacturing, energy, mining, and agriculture, and the networks that surround these sectors.