/biz/ - Business & Finance

>>23176214
>>23175881

https://www.lewrockwell.com/2019/09/mike-mish-shedlock/trumps-unwinnable-trade-war-gold-explains-why/

Michael Shedlock: "It is impossible for tariffs to fix problems caused by making the dollar the world’s reserve currency then removing the last constraints on global deficit spending!

If you support Trump’s tariffs as some sort of cure to trade imbalances, please read the above sentence over and over again until it finally sinks in that Trump is on a foolish path.

From 1866 to 1968 the US generally had a trade surplus.

The US had huge trade surpluses during and just after WWI and WWII.

Gold provided an enforcement mechanism against mercantilism, massive deficit spending, and huge government subsidies.

Starting August 15, 1971, when Nixon closed the gold window, there has been no enforcement mechanism.

That’s a problem that tariffs cannot possibly cure.

Nixon said it was “temporary”.

Guess what? It wasn’t.

Tariffs cannot possibly fix this issue.

Tariffs can only make matters worse by increasing costs on consumers and industries.

Trump is barking up the wrong tree, and loudly."