Economy

This may be a hot take, but Donald Trump fully intends to crash the US economy, so that he and allied billionaires can buy up assets. Trump intends to do this with funds obtained by his crypto scam conducted directly before taking office.

Here’s debunking of Trump’s primary logic against Canada, Mexico, EU, China etc.

🔹Trump’s views on trade deficit and desire for dollar supremacy are inherently contradictory!

🔹The ONLY way that US dollar can be the global currency is if America runs trade DEFICIT with the rest of the world.

🔹How are other countries going to get hold of dollar to trade or to save in their foreign exchange reserves? By running trade surplus with the US.

🔹Thus, to say that “other countries are ripping us off” shows a deep misunderstanding of fundamental economic principles.

In 1960, Belgian economist Triffin explained this obvious dilemma:

I would say there are several things Canada could do. A trade deal with the Latin America, a trade deal with South East Asian countries, a trade deal with East Asian countries, ask Europe to implement to legislate their trade deal as soon as possible, a trade deal with China and ask China to build a port in Vancouver and in Quebec. The last one I am not sure, because I am wondering if Dotard Trump would use it as a pretext to invade Canada militarily.

News outlets are reporting the dollar is soaring in foreign markets as the stocks here at home dropped. How does this happen?

I would understand if you tried bullying a country with zero wealth and zero technology, but a trade war with Canada would lead Canadians to become so angered they would refuse to buy anything Americans for more than a decade. Is there a way to calculate the negative impact of Trump's decision for years to come? I am trying to understand how stupid someone has to be to do something like this. It's like the guy doesn't have a brain.

Below is an essay I wrote on taxation. I would like to expand on it so all feedback is appreciated.

The world is globalized, and there is access to AI. What if we combine these phenomena into an optimal taxation system for the rich, the top 0.01%? Thereby the rising socioeconomic disparities could decrease, and overall production could increase. I, hereby, introduce a proposed world standard for such taxation, namely–Wealth Optimization tax, WOT.

It is feasible because in 2021 the OECD created a global taxation for rich, multinational companies, whereof 136 countries participated. Because of its “top off” system as long as the company has operations in at least one of the collegiate countries the tax can be topped up to the right amount of 15% tax. However, such could not apply to a person's residency situation. It is, therefore, necessary to have coordination similar to the declaration of the Paris Agreement or the foundation of the UN.

As it is achievable, the next step is the choice of tax. Perhaps the ancient 90% tax of the USA, or the contemporary progressive tax? None of these, as both are inefficient when compared to a tax based on a production index. Imagine the economy as channels of money, whereby the goal is to enrich the streams that are most valuable. Guaranteeing money to the right ones can be done with incentives based on VAT tax on the rich. This is where AI becomes crucial: gauging data and then insertion into a formula, delivering an index of how productive an investment is, and lastly choosing a tax based on that. Resources such as energy, food and building material might be more desired than the human asset so its health and education. All of them, would be more fitting than so-called speculative investments, which are for example the real estate market.

Returning to the core argument, with a 90% tax, the government could dump water into the right streams, but they do not have access to all the valuable streams as individuals do due to their ability to expand or create companies with a competitive edge. Nor does progressive tax incentivize productive investments; thus, the proposed system is optimal

The benefit of this system other than the ones named in the beginning is that because purchasing something is absolute in the block chain data, tax evasion becomes obsolete. To ensure that intermediaries are not used for investment, transferring money could be taxed to 75%, the same amount I propose be taxed on lifestyle. Logically, those who choose to hoard money or not invest and instead spend money on lifestyle, would either lead to no money flowing in the right stream or money flowing in an insignificant stream. I, therefore, also suggest taxation on money sitting in banks to decrease after a certain time until a specified threshold. To avoid the loophole of withdrawing and trading that or hoarding it, taxation could be applied there, too.

With that addressed, I would like to expand on the system with the idea of adjusting the VAT based on inflation to balance it out. And to avoid abrupt thresholds to be in the top 0.01%, the system could use a more linear approach.

Many countries have implemented similar systems, such as adjusting income tax relative to inflation or offering deductions for business ventures to encourage productive economic spending. However, this proposal stands out due to its deep integration of a productivity index, its fusion of multiple taxation concepts into a unified system, and its global scope. Charting spending activities could be invasive, but with power comes responsibility. That is the principle for perhaps breaching integrity and to be highly impetus; it is always an option for the rich, to not be rich. If there was thorough information on the riches’ spending habits it could strengthen the arguments proposed, but unfortunately there is limited research on that subject. Nevertheless, I urge this to be discussed more in the social and political spheres so that we as people can pressure the leaders to do more research and eventually, enforce policies. It might be necessary to test in smaller scope, until global to guarantee its benefits, but within short I am sure it is possible for the market to be blessed by WOT.

For those that are interested in the intricacies, the following section provides that. There are numerous types of productivity, such as innovation, environmental, social, economic. For a formula it has to be decided, which is to be prioritised. Even when the investment leads to return is relevant. Fortunately, there abounds data from the World Bank, OECD and other organisations to measure for specific regions making it feasible. When it comes to blockchain it is being explored to be used on normal transactions, ensuring secure and reliable data

From a practical perspective when data is used this way, it opens the door to expand the application of this system. For example, if certain conditions lead to specific results, the AI can adjust accordingly. As a result, it becomes an evolving entity.

In conclusion, it is undoubtedly not a question of if, but when. The responsibility is ours to accelerate that process. And should we not do all in our power to create a more globalized world, fostering cooperation instead of conflict and war?

Tengo 17 años y llevo 3 años metido en el nicho del marketing. En estos 3 años he podido independizar mis gastos personales (ropa, salidas, viajes con amigos, celulares, etc.). Ya dentro de lo que seria marketing me dedico a ser content manager, diseñador gráfico y digital, closer de ventas (mucha relación y experiencias en atención al cliente) y también un poco de logística como administrador de empresa. En estos 3 años adquiri mucha experiencia pero necesito expandirme afuera de mi ciudad ofreciendo estos servicios. Todo lo aprendi de manera autodidacta y lo unico que me dio el colegio fue disciplina.

Consejos?

Some economic ideas seem simple and appealing, but they don’t always work in reality. Replacing taxes with tariffs would make the economy unstable, and full self-sufficiency would drive up costs. Let’s break down why these ideas fall apart.

1.The Problem with Replacing Taxes with Tariffs

Some argue we could eliminate income taxes and rely on tariffs instead. It sounds appealing, tax foreign companies instead of our own people, but it’s not reliable.

Tariff revenue depends on trade, which can fluctuate due to recessions, changing demand, or loopholes. Unlike income tax, which remains stable as people keep working, tariffs are unpredictable.

Plus, tariffs aren’t actually paid by foreign countries, but by U.S. businesses that import goods. They either raise prices for consumers or cut jobs to offset costs, making everything more expensive and less secure. Other countries also retaliate with their own tariffs, hurting American farmers and manufacturers by cutting off foreign markets.

History shows relying on tariffs alone is too risky, unstable, and costly.

2. The Illusion of Self-Sufficiency

Some believe we should stop relying on trade and produce everything ourselves. While it sounds patriotic, it’s unrealistic in today’s economy.

Modern industries depend on global supply chains, not just for manufacturing but for raw materials and technology. Even if we tried to make everything in the U.S., we’d still need resources from other countries.

Self-sufficiency would also make life unaffordable. Without cheaper imports, production costs would skyrocket, leading to higher prices for essentials like food, cars, and electronics. Workers would demand higher wages to keep up, pushing costs even higher and risking inflation or economic decline. Our economy is connected to the world, and developing nations rely on trade with wealthier countries. Cutting imports wouldn’t just hurt us, it would hurt them too.

Instead of making everything here, we should focus on producing what benefits us most while keeping trade open where it makes sense.

Is there an explanation buried in Project 2025? Does it all go to the President’s pocket?

I don't think anybody wants to pay for tariffs or have a trade war with our allies. They historically do more damage than good. Inflation is going to get much much worse, and we could have an auto industry collapse.

I am just asking that when you can no longer afford it, join in on the strike. It only takes 4% of the population to participate to feel the economic pressure. If we all organize, we can do something about this. It's better than sitting around and just paying for something 1000% avoidable.

https://generalstrikeus.com/

Trump is complaining that the USA is “subsidizing” everyone else in the world because we have trade deficits with them.

My thoughts:

(1) Printing Trillions of dollars to pay for COVID and forgiving loans to the businesses that closed and just pocketed the money looked pretty inflationary to me on top of over a decade of QE at that point.

(2) Inflating the world’s reserve currency creates trade deficits because everything from the reserve nation costs more to import from the USA, while importing into the USA becomes cheaper.

(3) Adding tariffs further inflates the dollar domestically, making it even harder to export even before the retaliatory tariffs kick in, which might make it impossible. Being competitive in the global market is still better than dominating a single domestic one, even if it is the USA.

(4) Locking out foreign competition will stall innovation domestically. Investors can just profit capture without having to compete and innovate, and capitalists will deploy outside the USA because that’s boring and they enjoy maxing efficiency to create value. The USA looks like it’s going to be a bunch of people that feel good about themselves because a number in a database is higher than other people’s, but then look around and wonder where everyone with skills and a work ethic went, and why they don’t want to accept a part of that number in a database as payment for those skills to keep working for “investors” instead of capitalists.

Conclusion: Trade deals are going to move to a predictable medium of exchange and off of the dollar. The USD will lose its reserve status. And we may not have deficits anymore, but that’s only because no one will want to trade with us anyway. Reducing trade reduces economic prosperity pretty much every time you see isolationists cut their populations off from the wider world and start policing their language and forcing ideologies on people that don’t want them.

Is there a steel man argument here? Because I still haven’t seen Trump give us the economic models he’s working with that I hope he at least asked for before making these decisions.

Y'all about to learn what tariffs really do. Get ready for the cost of everything to sky rocket, and just remember, you voted for this.

Will the fed raise rates again if we start to see more inflation in the economy due to the trade wars? If so, how high could it go?

Hello guys , I am trying to find the name of a magazine I have read in the airport in summer 2024. The cover was red and the concept of the magazine was something like " how to make money from rich people " it was for economics etc. I can't find it and I am wondering if any of you know the title,you will help me a lot .