Brace Yourself! Goods Tariffs Set the Stage for Money Taxation Madness!

Efi Chalikopoulou illustration of the US map as a price tag


CRISIS ALERT: THE U.S. ECONOMY ON THE VERGE OF CHAOS!

Dazed and Confused Investors Brace for Impact as Shutdown Looms!

This month, investors are reeling like never before as the U.S. government dances dangerously close to another budget catastrophe! With President Donald Trump ramping up his reckless trade war, economic anxiety levels have surged to unprecedented heights, surpassing even the 2020 pandemic panic and the global financial meltdown of 2008!

Is a NEW ECONOMIC NIGHTMARE Looming? Tariffs on Goods Could Lead to TARIFFS ON MONEY!

But hold onto your wallets, folks! The madness doesn’t stop there! As the tariff storm brews, a chilling question hangs in the air: could Trumpโ€™s onslaught on free trade lead to an ALL-OUT ASSAULT on free capital flows? Yes, you heard that right! What if tariffs on tangible goods are just the beginning?

Just moments ago, this idea might have sounded like a paranoid fantasy, but hereโ€™s the harsh reality: capital inflowsโ€”once seen as a blessingโ€”could soon become a CURSE! Maverick economist Michael Pettis has been sounding the alarm, proclaiming that these capital winds are not just a byproduct of Americaโ€™s trade deficit, but a debilitating blow to the nation’s very fabric! He warns that inflows inflate the dollarโ€™s value and devastate America’s industrial stronghold, declaring that "capital has become the tail that wags the dog of tradeโ€โ€”driving up those monstrous deficits!

Pettis’s SHOCKING Proposals: Could the U.S. Tax Capital Inflows?

Whatโ€™s his solution? Taxes! Yes, folks, you heard it here first. Six years ago, a bold duoโ€”Democratic Senator Tammy Baldwin and Republican Josh Hawleyโ€”introduced the groundbreaking Competitive Dollar for Jobs and Prosperity Act, daring to propose taxes on capital inflows while pushing for a weak-dollar policy from the Federal Reserve. It was thought to be DOA, but hold onto your hats; a conservative think-tank just proclaimed these taxes could rake in a staggering $2 trillion over the next decade!

BREAKING: White House EXECUTIVE ORDER THREATENS to End Chinese Capital Inflow Tax Exemption!

Adding fuel to the fire, the White House recently announced an โ€œAmerica First Investment Policyโ€ that could scrap a 30% tax exemption on Chinese capital inflows that dates back to 1984. This news slipped under the radar amid Trumpโ€™s incessant tariff distractions, but letโ€™s make one thing clearโ€”it sent shockwaves through Asian markets and triggered a wave of panic among investors, sending stocks tumbling down!

Policy Predictions: Trumpโ€™s Mercurial Ways Leave Investors Guessing!

So, whatโ€™s next? A tax shift seems uncertain and may only sting the Chineseโ€”but in this unpredictable game, can anyone truly expect Trump to play by the rules? His inner circle is a battlefield of competing factions โ€“ from nationalist populists to techno-libertarians โ€“ each wrestling for power. Will they allow capital restrictions to tip the scales of financial stability?

MAGNITUDE of Change: A New Mar-a-Lago Accord on the Horizon?

Trumpโ€™s ambitions stretch beyond simple tariffs; whispers of a colossal Mar-a-Lago accord are brewing! Some insiders speculate this could involve a U.S. debt restructuring that forces Treasury holders to swap bonds for perpetual ones! Are we on the brink of a NEW ERA in global trade and finance?

Wealth Fund Revolution: Could Americaโ€™s Gold Back a NEW Financial Order?

And hold onto your hats for this one: some financial wizards envision a U.S. sovereign wealth fund backed by Americaโ€™s gold surging forth to acquire non-dollar assets! If this dream materializes, it could send shockwaves worldwide!

The End of an Era? An Economic Philosophy Set for Dramatic Shift!

As insiders predict an epic shift in economic philosophy, some experts believe weโ€™re staring down a revolution as groundbreaking as the Keynesian overhaul post-World War II! The stakes are higher than ever!

Brace yourselves, America! The economic waters are turbulent, and the cataclysmic changes ahead could reshape our financial future. As Greg Jensen puts it, channeling Milton Friedman: "We are all mercantilists now." Don’t expect a reversal anytime soon, folks!

photo credit: www.ft.com

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Source: USD @ Fri, 14 Mar.