Categories
Premium Articles

Tariffs Goal is “Fair Trade”

 

 

John Sturges (Davidson) submits:

DOGE Reveals Mind Shocking Fraud Propping Up Economy – Ed Dowd 
Ed Dowd fears recession, but everyone can see exactly what is happening through the transparency of the White House. Mind the fact that the current administration was just put in place for exactly the actions they are executing. While there have already been multiple recession headlines, none of us is overly concerned because the bulk of the country, even the supposed “Swing States” which shocked everyone by their uniformity of being for what we see occurring today. That is of course a significant downsizing of government, policies to bolster US manufacturing, the expansion of free speech protections and the re-implementation of the rule of law the lack of which threatened the citizens of many communities.
 
The philosophy behind the tariffs is to produce fair trade, not free trade. Every trading partner has taken extreme advantage of US as the ‘good guy’ such that we have served others at the detriment to our own citizens wellbeing since the early 1950s. Our trading partners have built capacity to service the largest consuming market globally and not let US producers in without significant penalty. With the current administration’s tariffs, they must absorb these costs, move mfg to the US or lose the US as a market. This has already resulted in $Trillions, $5Trillion and rising, of commitments to place manufacturing in the US. That looks to me to be a substantial shift it the right direction in an incredibly short period which underscores this administration’s judgement.
 
I spent the weekend listening to interviews of Treas Sec Bessent, Transition Team leader Lutnick and Negotiator Witkoff. I also listened to Chamath Palihapitiya, Jason Calacanis, David Sacks & David Friedberg discuss what they see occurring, mind you each is decently Left-of Center as were many in the current administration like Musk, Gabbard and etc. They are very positive on the direction and the transparency of what is occurring.
 
I see a great hope spilling over the nation that is unlikely to result in recession. It also looks like the feared inflation was absorbed in international markets as they saw higher inflation than we did. The reduction in money printing is well on the way and I now expect to see inflation steadily reduce over 2yrs-3yrs. Any headline fears of recession will prove offset by the confidence rising in the nation. Besides this, we remain financially well into safe territory with consumer delinquencies. While we may see some rise due to employment lost in government, this should prove short lived.
 
I remain quite positive for the suggested list of issues we are using in portfolios.