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'Your question is so stupid' Trump snaps when asked how much economic pain he'd tolerate (www.rawstory.com)

submitted 1 year ago by MicroWave@lemmy.world to c/politics@lemmy.world

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Summary

Trump snapped at a reporter who asked how much economic pain he was willing to inflict amid plunging markets triggered by his new tariffs.

Speaking after a weekend at his Florida resort, Trump dismissed speculation he was trying to crash the market, claiming tariffs would bring in "$1 trillion" and spur U.S. manufacturing.

When asked about a pain threshold for Americans, he called the question "so stupid," arguing economic “medicine” was necessary to reverse decades of "stupid leadership."

He insisted the strategy would make the U.S. "solid and strong again."

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[-] sp3tr4l@lemmy.zip 2 points 1 year ago* (last edited 1 year ago)

So, its now around a day or two later.

https://www.theguardian.com/business/2025/apr/09/dramatic-sell-off-of-us-government-bonds-as-tariff-war-panic-deepens

I was right, Varoufakis is wrong.

Again, Varoufakis idea is:

Central to this new global order would be a cheaper dollar that remains the world’s reserve currency — this would lower US long-term borrowing rates even more. Can Trump have his cake (a hegemonic dollar and low-yielding US Treasuries) and eat it (a depreciated dollar)?

and

Consequently, the euro, the yen and the renminbi will soften relative to the dollar. This will cancel out the price hikes of goods imported into the US, and leave the prices American consumers pay unaffected. The tariffed countries will be in effect paying for Trump’s tariffs.

Summarized, he thinks that:

US Bond prices will go up

and/or

US Bond yields will go down

and

The USD will appreciate compared to the Yen, Euro, Renminbi, that is to say, a dollar will be worth more yen, euro, ren.

What is actually happening is:

US Bond prices are going down.

US Bond yields are going up.

https://www.google.com/finance/quote/USD-JPY?window=1M

https://www.google.com/finance/quote/USD-EUR?window=1M

USD is depreciating, not appreciating, compared to yen and euro.

The USD/CNY is exchange rate is set at a fixed rate by China, and they haven't moved it yet.

So uh, no Mr. Varoufakis, Trump cannot have his cake and eat it too, infact he shit in the cake and then threw the mixture all around the room, now he gets nothing that he wanted.

Trump has destroyed the Bretton Woods USD hegemony, but in a way that is utterly catastrophic for the US, not some extremely clever 12D chess move.

[-] seeigel@feddit.org 1 points 1 year ago* (last edited 1 year ago)

I agreed with you. I just think that Varoufakis knew and just was not willing to write that the dollar will depreciate so he gave an explanation that doesn't make sense.

Nevertheless, I appreciate your detailed explanations.

Btw, here is a link of a blog post from 2023 that warned about the tariffs, with a link to the washington post:

https://www.un-diplomatic.com/p/the-newsletter-that-forewarned-of

this post was submitted on 07 Apr 2025

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