The Rest Is Money 155. Trump Turmoil: The Tariffs Kick In
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Apr 9, 2025 Dive into the daunting world of trade tariffs, with an eye-popping 104% on goods from China! Explore how current tensions echo the 2008 financial crisis, prompting fears of dollar dumping by global investors. Discover the fraught relationship between political decisions and economic stability, especially the risks of unilateral trade actions. Plus, see how these policies ripple into everyday life, affecting supplies and inflation for all, especially retirees. A rollercoaster discussion on trade’s tighter grip on our wallets!
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Unusual Investor Behavior
- Investors are selling US Treasury bonds, increasing US borrowing costs.
- This is the opposite of typical crisis behavior, where investors buy these bonds as a safe haven.
Trump's Exacerbating Role
- Unlike other financial crises, the US President is exacerbating, not mitigating the crisis.
- Trump's actions are driving a potential recession, unlike previous presidents who aimed to stabilize the economy.
Recalling 2008
- Steph McGovern recalls the 2007-2008 financial crisis, marked by bank runs and company closures.
- She questions if the current situation, driven by Trump's tariffs, will have similar tangible consequences.