Good day all. Once again, the “Experts” are being show that they are nothing more then windbags and blowhards spewing hot air everywhere. Since President Trump returned to office, he has been both doing trade deals with willing countries and imposing tariffs on others on top of a standard across the board tariff.
The “Usual Suspects,” in this case TransNational Globalists and free trade over all types have been decrying the tariffs President Trump has been imposing. Groups like the Chamber of Commerce along with a number of Democrat State Attorneys General have tried to stop the Tariffs. (and failed miserably) The general excuse has been that it will wreck the economy and that it will cause a depression.
There is just one small problem with that claim. It hasn’t happened. What’s even worse, at least for the Free Traders, is that the tariffs are actually working, and they are generating a boatload of revenue. Here are the details from CNBC:
The U.S. government posted a surplus in June as tariffs gave an extra bump to a sharp increase in receipts, the Treasury Department said Friday. With government red ink swelling throughout the year, last month saw a surplus of just over $27 billion, following a $316 billion deficit in May.
That brought the fiscal year-to-date deficit to $1.34 trillion, up 5% from a year ago. However, with calendar adjustment, the deficit actually edged lower by 1%. There are three months left in the current fiscal year, which ends Sept. 30.
Now granted, the deficit is way to large. We should be running zero deficits and preferably, good sized surpluses. Still, this is a start. Better still? It’s a kick to the crotch for all the TransNational Globalists and Free Trade fanatics.
Increasing tariff collections are helping shore up the government finances.
Customs duties totaled about $27 billion for the month, up from $23 billion in May and 301% higher than June 2024. On an annual basis, tariff collections have totaled $113 billion, or 86% more than a year ago.
What has changed in the last year?
Trump levied across-the-board 10% tariffs on imports in April on top of other select duties. He also announced a menu of so-called reciprocal tariffs on various U.S. trading partners and has been in negotiations since.
Part of those tariffs was to force certain nations to the trade deal table. Many countries actively block American imports and yet expect free access to our markets. (This is a little detail the Free Trade Fanatics don’t like to talk about) The 10% tariff is on everyone and is basically a way to generate revenue for the treasury. President Trump fully expects the same sort of tariffs from other countries and doesn’t have an issue with it as long as we have the same access to their markets that we give to them here.
One of the other issues we have is, as usual, the Federal Reserve. They opened the money taps and put the printing presses into overdrive for the Biden Maladministration with the surprising, (To no one with a functioning brain), result of the worst inflation in 40 years. That caused them to over-correct, again and jack up interest rates. Now Inflation has calmed down quite a bit, but the head of the Federal Reserve, Jerome Powell won’t do it.
Trump has been pushing the Federal Reserve to cut short-term rates to help with the financing burden of servicing federal debt. But markets don’t expect the central bank to ease again until September, and Fed Chair Jerome Powell has said he remains leery of the potential impact that tariffs might have on inflation.
I have a suspicion that Powell and the Federal Reserve Board are doing this intentionally to “Get Trump!” The whole Federal Reserve thing is, in my mind, of questionable constitutionality, and they have been, throughout their existence, more often wrong then right. They’ve also caused most of the economic downturns in this country back to the Great Depression.
I think that we might be seeing the end game of the Federal Reserve occurring. It might take a few years and a few elections, but we may see Congress decide that enough is enough and forcibly disband the whole Federal Reserve shooting match.
In any case, with the Tariffs now actually adding money to the Treasury, along with, hopefully massive cuts in Domestic spending. We just need to get rid of as many Progressive Liberal Democrats and Big Government Chamber of Commerce Republicans as possible. This country was funded by tariffs until the passage of the 16th Amendment imposed the income tax on America. That allowed the massive growth of the Federal Government and the issues we’re now dealing with. Perhaps we need rethink how funding of the Federal Government is best accomplished. Tariffs appear to be actually working. We shall see how things look in a year or two.
Thatisall
(3 votes, average: 5.00 out of 5)
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