WDDDDT? #47 AKA ERROR #2: I WON’T BACK DOWN

April 4, 2025: DAY 75 of 100

TOM PETTY and THE HEARTBREAKERS had a great tune , “I Won’t Back Down”…

Well, I won't back down

No I won't back down

You could stand me up at the gates of Hell

But I won't back down (Tom Petty/Jeff Lynn)

   And so goes #47 as the world responds to the tariffs being imposed on “friend and foe alike”.

   “Whew, that’s a lot of money, honey”, she said…S&P down 4.84%, Nasdaq down 5.97% ;7.04% in one week, Dow down 3.98%, the 10 year T-Bond under 4 which scare the bejeezus out of me.

   According to economists it would take APPLE about 3 years to move their factories to the US to avoid the tariffs. What to do in the meantime…pay the $$$ for a new iPhone, readjust your lives for the next 8 -10 months, let’s as JD claimed show “patience as it will take time”.

   Let’s look at two things: One, the ridiculousness of a few of the “reciprocal” or minimal (10%) tariffs being levied. And secondly, what does the levying of these tariffs mean for the average American household.

   I believe in leveling the playing field, you charge me for work/services, I need to charge you for work and services in return, that’s reciprocal. This new wave of haphazard tariffs is not truly reciprocal but more of a kick in the balls to some “friends and foe”, one to get their attention. Okay, attention gotten, especially in these spots:

   Heard Island and McDonald Islands, Australian territories near Antarctica where penguins live but no people. WTF do we get from them or what do they buy from us…zero…10% tariff.

   The British Indian Ocean Territory, mostly uninhabited islands.U.S. and British soldiers are stationed at the joint military bases on Diego Garcia. 10%

   Here’s a goodie. Australia is charged the minimum 10% while Norfolk Island, an Australian territory in the South Pacific Ocean faces 29%. Do the math (2023) Norfolk Island exported $655,000 worth of products to the United States and imported $116,000 worth of products from the United States, mostly chemical fertilizers. Geez, we got them on their knees and our Federal Deficit will drop.

   Tokelau, a territory of New Zealand that has fewer than 2,000 inhabitants, 10%.

   Norwegian islands of Svalbard, which has about 3,000 residents.

   Jan Mayen, where the only humans are the military personnel who operate a weather and coastal services station, 10% 

   France has  a tariff of 20% but one of its territories east of Madagascar, Réunion which has a population of less than 1 million, 37% tariff.

   Britain pays 10% while The Falkland Islands, a self-governing British Overseas Territory, will have to pay 41 percent.

   Let’s imagine how the “average" American consumer will respond. Treasury Secretary Scott Bessent offered a few comments.To put his mark on what the average consumer thinks one must remember BESSENT is a former hedge fund investor who is worth hundreds of millions of dollars, average, me thinks not. Scotty Boy states that the American Dream is not buying cheap/large imported TVs to impress your neighbors. It is more about buying US made goods no matter what the price. A philosophy stated on MEET THE PRESS by our fearless leader himself,“I couldn’t care less if they raise prices, because people are going to start buying American-made cars.”

   Uncertainty and anxiety abound. “Patience”, as JD stated.  Show some National Pride, in other words “suck it up”. Think about the bigger picture where #47, our economic savior is attempting to correct decades of economic injustice “We may have, short term, a little pain,People understand that” so he said. But do they? Will they?

  How is all this confusion easing the anxiety of the American consumer? Can anyone convince the consumer that in the long run you are better off with higher prices? I doubt it. Especially in light of the downward spiral of the stock market, the lower 401(k)’s. Let that reality set in for the next 8 months. Economic pain makes folks respond almost immediately. A few months of this shit show will get the MAGA faithful’s attention. This reminds me of a time when we rationed gas odd/even days on long lines with extremely high prices. That was not popular with the masses. I question why the tariffs and why now? I for one am willing to pay more for an American Union made product, to some extent. Protecting certain industries from foreign competition is a great idea, again, to an extent. But I ask why now and to this haphazard extent.

FYI: Gas: January 30, 2025: $3.12 (US avr)

         April 1, 2025: $3.17

      Eggs: November 2024: $3.65

          December 2024: $4.15

          April 1, 2025:  $5.90 : A new record high

Oh, Ye, gentle mistresses and most distinguished gentlemen, and others… The opinions and observations are solely my own views, and I take full responsibility for any errors of fact, not to mention any predictions that prove to be wildly inaccurate.