Lots of people still in doubt if Taiwan is an independant country or if they belong to main land China, here is the answer
The Trump tariffs
- Thread starter scary_robot_music
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What you are saying is true only in a world of perfect competition. The reality is the market concentration in most industries in the USA has been steadily increasing for decades and with this the profit margin and return on equity (even including non-software companies) of major corporations has risen over time. There is less competition now and companies have more pricing power than than they did 30 years ago so a lot of the cost savings will just be absorbed by the companies as higher profit margins rather than passed onto consumers. Not just that but concentration of cross ownership has risen. If for example Blackrock, Vanguard, State Street and Fidelity combined control 25% of the voting rights of shares in a company in the S&P 500 and control a similar percentage of voting rights in its competitor behind the scenes they will be pushing to make sure competition is gentlemanly and no price wars etc break out between competitors.
On top of this large swathes of the American economy are now owned by private equity and they have a very short term extractive focus of raising prices and cutting costs (through worse customer service) because they don't care about what happens to the company 50 years from now. A classical old time entrepreneur often wants to build a business they can pass onto their grand-kids so they want things to be sustainable whereas private equity just wants to gauge their customers and if the company fails 10 years later it doesn't matter if they already made their return.
The government greenlighting things is only one step in the process.
For a corporation in the S&P 500 most of them are so slow moving it would take them a year just to submit a plan to the government between the board of directors having meetings and commissioning feasibility studies to even decide to build a factory in the USA, where it should get built, organising financing, etc.
Then even if the government approves the plans quickly (say 6 months) with all the building regulations and safety and labour standards in the USA any mega-factory won't get built in anything under 2 years from the date of approval.
For example the Tesla giga factory in Texas was announced in November 2019 and the first model Y rolled off the assembly line in August 2021. Basically 2 years. But how many years did it take before that for Tesla to decide to build a factory then choose a location for it, get approval, etc? You can see generally in the USA 5 years is generally considered quick turnaround from when a CEO gets the idea in his head to build a factory in the USA to the point where the factory creates its first product that is usually a 5 year process. In China that could be a 2 year process.
The problem is not everybody can do highly skilled highly specialized jobs. Not everybody is capable of that. I am fairly certain in 30 years time unemployment will be much higher than today.
It's not about taxing the people who work, its about taxing the profits of the mega corporations or taxing consumption to pay for welfare. I am not making a judgement if that is good or bad but rather I am making the judgement that it is what is most likely to happen to avoid societal collapse.
Being reliant on the government to survive sounds like a potential nightmare.
Oh, you didn't take the latest jab or posted something "racist" on social media?!? No more UBI for you! And now we must take your children since you can no longer provide for them.
It reminds me of something from the end times prophecies.
Oh, you didn't take the latest jab or posted something "racist" on social media?!? No more UBI for you! And now we must take your children since you can no longer provide for them.
It reminds me of something from the end times prophecies.
Yep. That is why you need to make enough money to retire in the next few years before everything goes to shit.
Most Financial News correlating with Political News are junk like few had mentioned earlier in the thread - risk on assets are expected to be volatile from sentiment anyways. Bonds on the other hand...
There's speculation bond (risk off) selling off by Japanese holders had spooked Trump to hold back on the trade war.
news.sky.com
There's speculation bond (risk off) selling off by Japanese holders had spooked Trump to hold back on the trade war.
Donald Trump has finally blinked - but it's not the stock markets that have forced him to act
The US president had brushed off the sour equity market reaction to his tariffs as being akin to "medicine" that had to be taken. But, as ever, it is the bond markets that have forced Mr Trump to blink.
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I've been doing this for a while with my clothes and shoes etc. Less stuff but higher quality and timeless cuts.
You look better and things last. Way longer than the fast fashion stuff.
That is the first time I have heard of the current prime minister of Singapore. This was his response to the tariff wars. Ignore the awful clickbait heading.
He seems intelligent, well spoken and measured in his response. He also seems to have a good understanding of history. I don’t necessarily agree with every single thing he said but overall he seems a lot more sensible than most politicians from other countries.
Do you think they'll lash out? That's what the doomsayers from sites going on predicting that for 20, 10, the last 5 years, etc keep saying.
Zeihan is still predicting that too, like Schiff's BTC prediction. They don't realize that predicting that we'll all die one day isn't a prediction.
