BREAKDOWNING IT

How far does Donald Trump intend to push the accelerator with his extortionate tariff plan and how has he already started to screw the British economy?

 

By Sir Charlattam

It is neither a rumour nor a fantasy what has been said among Americans after the explosive Monday 7 April where markets collapsed as soon as they opened for business with the IBEX index being the most indicative of this catastrophe.  That is why it was called ‘Black Monday’. One of my contacts in the City of London who has his trading papers located in the US knew first hand the uncertainty and fury of several of his colleagues in New York towards Donald Trump, the architect of the recessionary catastrophe that has undoubtedly begun.

We may hear in the coming days of many suicides and other similar events among brokers and financiers on both sides of the Atlantic as they have lost billions of dollars and pounds sterling in just a few minutes. Many mistresses and careerists must already be packing up the flats rented by their old benefactors. If anyone in the deep state had a lot of things against Donald Trump this gives a new dimension to the reactions he may unleash against himself.

But it won't be just businessmen and big stock market investors who have already felt the first blow of this new era of Trump's ‘economic warfare’, very soon like water seeping through a tiny hole in an old hull, it will be seeping into the domestic economy. Americans themselves will be the first to taste the bitter taste of this hecatomb with the passing on of the price increase in consumption and kicking them down another notch in their already expensive lifestyle.

According to Trump's expectations, bringing all the world's importers to their knees will mean a total benefit for American industry and with it, jobs will increase, sales will rise and America will be great again. But there is a small flaw in this simplified equation: American products are often very low-grade compared to those of their European and Asian competitors. Just one example will illustrate the point. The auto industry cannot compete with German cars, or Japanese cars for that matter, and now, with these tariffs, Americans (who have the money) who want one of these cars will have to pay much more for it.

The recession is here and Americans have their president to thank for it. How long will the poor and even the middle class put up with it?

Predictably, the White House blamed all this on China's countermeasures against the US with a 34% tariff on all US goods entering the US, which if we didn't know who Trump is we would call idiotic. As is the old custom in America's political class, ‘it's always someone else's fault’ to escape their own responsibilities.

Only an idiot would not see the Chinese reaction coming. Trump is no idiot and his circle of arse-lickers around him even less so and as such they will not tell the king that he is naked.

Worst of all, this has only just begun. The British government is still in shock and I wouldn't be surprised if PM Sir Starmer himself went catatonic with his cup of tea in his hand as soon as he was informed of what was going on. Another who must have been caught unaware of what was going to happen is the Chancellor of the Exchequer Rachel Reeves who must already be formulating a programme of state intervention throughout the British economy and trade to try to curb the inevitable rise in prices.

One of the areas of domestic production most affected by Trump's policies is the steel industry, vital to the economic life of every British company, to the military industry and of course to revenue collection. Just looking at this, the government will take any measure that safeguards the interests of business even at the cost of making life more expensive for citizens.

If we were at the beginning of this century, we might swallow the political labels and the differences that were said to exist between Labour and Conservatives, perhaps. But by now we can see that there is no distinction between the two, and if not, what has happened to the very enthusiastic Labour Sir Starmer?

Of course, in the public eye, Starmer had to put on his trousers and speak with his customary English gentlemanly posture and worn-out Labour label, now reconverted into a raging protectionist, saying he was ready to protect British industry Isn't lovely?

The 10% tariff on all British goods entering the US will undoubtedly increase prices and while Starmer and his cabinet will smile politely at this real extortion, British citizens will see prices start to rise like an elephant's fever that will empty their pockets as fast as it fills them.

As for matters of high politics, let no one doubt that Sir Starmer will continue to lick Donald's feet to keep him happy while he continues his ambitious plan to arm and lead with Macron a pan-European military scheme that can be put into operation in Ukraine. 

Thankfully the winter is over and at least the British will at least be able to do without paying expensive gas and electricity bills but will we make it to next winter?