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Bob's Words of Wisdom

The Trump Tariff Tantrum

President Trump has brought America to the verge of a new golden era. This has become a battle of those who want to move forward and thrive and those who want the status quo which will mean certain destruction as our national debt spirals out of control. Anyone who has been in deep debt knows that to get out of debt there is a lot of pain involved. We are in the process of turning our around country around. I believe were in the process of exterminating the roaches and the bureaucratic cancer that has infested our Washington bureaucracy for decades sucking up our tax dollars and giving them away to causes and countries that would destroy us.

We are in an economic civil war between those who have been on the dole for decades and those who have been paying higher taxes, getting lower wages while working longer hours. The question is are we ready to take the medicine necessary to bring about the Golden age that Trump talks about? I have always said you can’t make an omelet without breaking a few eggs and currently we are in the egg breaking stage. But the at least the price of eggs has dropped substantially. Trump is making all of the right moves economically. You can tell by the resistance he is facing from the left and the liberal media. We see the gnashing of teeth and shouts about how wrong he is from the left both at home and abroad because he is taking away the piggy bank form the economic sloths of this world. These are the people who have been wasting our tax dollars on things like Climate Change and giving them to foreign countries who have been screwing us economically for decades.

Trump just bought all Americans a new pair of running shoes and while they are a bit too tight right now they will get a lot more comfortable as we run faster and break them in. Everyone worries about the stock market but the yield on the ten- and thirty-year bond rates have been declining, which is good for mortgage rates while the price of oil has declined to 60 dollars a barrel. We are just starting to see some of the effects of the astronomical investments being poured into America. Corporations have pledged over 5 trillion in new investments for their operations in our country, which will be the engine that will power this economy forward. All I can say is people need to be patient and yes, we will experience some pain as this transition takes place but we will all be better off when we eliminate the bureaucratic cancer that has been destroying our country.

Thank you, Elon Musk and Big Balls. For those with a long-term time horizon, try to stay unemotional during volatile times in the stock market like these. Study market behavior across multiple time levels (daily, weekly, monthly, etc) to get the best perspective and stop watching the daily ups and downs of markets. Any time there is change in the basic concepts of trade as with tariffs you will see much confusion and turmoil. Wall Street hates uncertainty and Trump has caused a major disruption in trying to fix the last 37 years since Ronald Reagan of inept leadership. No one likes change as it is often inconvenient for us to change our habits but America has developed some really bad habits and reversing them is going to take some time and will cause some pain.

The only reason everyone is complaining about these tariffs if because no one actually understands them or what Trump is trying to do with them. For those of you who don’t understand tariffs they are a tax imposed by one country on the goods and services imported from another country. America is the largest importer of goods in the world from foreign countries and for years we have been taken advantage of by our trading partners. What do I mean by that? While America has very low tariffs on most foreign made products we buy the opposite is true of those countries we trade with as they in many cases have very high tariffs and taxes on American made products. What Trump is trying to accomplish in a short time is to do away with tariffs entirely. By elevating the tariffs, we charge other countries to levels that match theirs; we are creating a fairer trading platform. As we make it more expensive for foreign countries to sell their goods to the U.S. it will force them to the negotiating table and eventually they will lower and hopefully eliminate their tariffs and taxes on our products.

A perfect example is our trade with Germany where you see very few American made cars on German roads and the reasons is they have a 10% tax on U.S. manufactured autos so a luxury car like a Cadillac costing $60,000 would cost $66,000 making comparable German made autos cheaper to buy. China, Mexico and Canada is our biggest trading partners. U.S. goods exported to China in 2024 were $143.5 billion while U.S. goods imported from China in 2024 totaled $438.9 billion leaving us with a trade deficit of 295.4 billion. The U.S. trade deficit with Canada was $63.3 billion in 2024 and Mexico was $171.8 billion that same year. Wonder why our debt is so high? You can clearly see we have significant deficits with our three largest trading partners and Trump is trying to reverse this inequity with the imposition of tariffs. These tariffs are only a means to end of the inequities with those countries we trade with and are ment to bring them all to the negotiating table so we can eventually end these disparities.

Every leftist media outlet is screaming that prices for everything are going higher but they offer little proof. They continue to say the polls in support of what Trump and his administration are doing are dropping perceptually but if you look closely at how these polls are being designed you will find a lot of bias in the poll takers. Expect more criticism from the left about Trump’s policies because he is reversing years of government control of just about everything we do in our lives including the water restrictors on our showers. Government from the left wants to control us from cradle to grave and that is contrary to how our country was founded. Trump is slowly pushing Government out of our lives by keeping taxes low with his “Big Beautiful Bill” and bringing manufacturing back that will offer good paying jobs. We have become a country of services and that has to change if we are to rebuild and Make America Great Again. The “Talking Heads” of wall street and the leftist corporate media are crying wolf when they talk about a recession as neither of these sources have accurately called a recession in decades until we were already 6 months or more into one. Is it possible that we could have a mild recession? Sure, there is; but as I have said even if that happens if Trump can change the course of history by bringing free trade to the world with no tariffs America and its people will prosper handsomely. So, buckle up Idaho as the Trump Train is rolling full steam ahead and after some pain things will get a lot better for everyone. Even the Libs.

“We Get the Government We Deserve”

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