More tariff truth

  

 

Donald Trump must be a magician.  Since he took office on January 20th, he’s made $12 trillion disappear from the stock markets. $12 trillion... For context, only 19 countries in the world have a GDP over $1 trillion, and of those, only 2 have a GDP greater than $11 trillion.  It took Trump 4 years to grow US debt by $8 trillion.  Apparently, he has learned a thing or two about debt creation since his first term. 

He is surrounded by alchemists and court jesters. A little pain and suffering is just what the world economy needs according to his worship.  Tornados and generational flooding be damned...Trump is a one-person natural disaster. 

Here’s the truth of the matter. 

At the end of 2000, the total US debt was just over $5 trillion, and President Clinton handed over a budget surplus. Then disaster struck on September 11th, 2001, and since then everything has gone pretty much downhill. 

After the attack in NYC, the US war on terror ramped up.  By the end of 2004 and the war in Iraq, debt climbed by 40% to $7.5 trillion.  Remember that this was a war based on faulty information about weapons of mass destruction. 

In 2008, Obama inherited the fiscal calamity, based on the mortgage crisis, that almost brought down the world’s financial systems. The bailout added $6 trillion to US debt by 2012, a 60% increase. By the time he handed the baton to Trump 45, debt had reached $19.5 trillion. 

The Orange Man decided that considering the deteriorating debt status of the US, this would be a good time to start trade conflicts and reduce income taxes for the wealthiest.  Combined with the initial impact of Covid, Trump left office with over $8 trillion added to the national debt, now $27.7 trillion. 

Under Biden, the response to Covid had the expected impact of adding more debt. He left office with the debt at $35.7 trillion, about half of which is attributable to the pandemic response. 

In quick summary, US federal debt has spiraled out of control due to engagement in unnecessary foreign wars, a corrupt financial system for which NO ONE was ever charged for their malfeasance, and tax relief for the wealthiest in the system, one that allows Warren Buffett to pay less as a percentage of income than does his personal assistant. 

Not to be outdone, the American consumer has accumulated total personal debt of over $18 trillion.  Mortgages make up about 65% of that amount, but credit card debt is over $1.2 trillion.  In fact, US consumer debt exceeds the GDP of China, the second largest economy in the world. 

So, tell me again how the nations of the world are ripping off the US.  It seems to me that the pain is self-inflicted.  Mismanagement, greed, gluttony and unequal taxation policies have much more to do with the matter.   

Take a longer look in the mirror.   

‘...we have found the enemy, and the enemy is us...’ 

Let's talk Trump Tariffs...and Truth

 

There is a misconception that Canada has been pillaging the US in trade.  But the numbers do not lie and the truth belies the claims that the Trump administration has put forward.  Let’s consider the facts. 

In 2024, the value of Goods and Services that Canada export to the US showed a favourable value for Canada of $35.7 billion USD. But it is important to understand the specifics.  

The US imports about $130 billion USD of Canadian crude oil.  For many years the US was energy dependent and chose to move that dependency towards Canada as a safe and reliable partner.  Almost 20% of US refineries are designed to only process the heavier Canadian crude.  They purchase this at very favourable rates which are below the world market for oil.  As the US has become less oil dependent because of fracking, US imports from other countries apart from Canada has fallen dramatically, allowing the US to become a net exporter; they now export almost as much oil as they import from Canada.  However, the value of US crude exports is significantly higher because it demands a higher price on world markets. 

So, the US has a consistent, reliable and safe partnership with Canadian producers that keep 20% of the US refineries operating, and they can export over 4 million barrels a day at higher prices.  I can see why that is such a threat... 

Let’s talk aluminum.  Aluminum is an important product for US safety and security given its myriad uses.  From aircraft to cars, cans to foil, furniture to siding, aluminum is used across society. The US has only 4 aluminum smelters and relies on imports to fill domestic needs.  Here stands Canada to fulfill over 60% of that capacity...damn that safe and reliable partner, eh? Aluminum manufacturing is an energy hog.  One large plant consumes as much energy as the city of Cleveland.  To produce the energy the US would need to fill its own requirements would necessitate more manufacturing plants and the equivalent of 4 more Hoover dams. An added bonus, about half of the downstream products produced from this Canadian aluminum in the US is ultimately exported back to Canada as finished goods.  I can see why our partnership is so concerning.  

In 1992, the USA, Canada and Mexico negotiated NAFTA, creating the world’s largest free trade agreement.  It was signed by President Bush.  In October 2018, that agreement was updated, signed on behalf of the US by President Trump.  He called it ‘...the most modern, up-to-date, and balanced trade agreement in the history of our country, with the most advanced protections for workers ever developed.” 

If there is a problem, let’s talk about it.  It has worked for over 30 years to the benefit of all three countries.  It has been perfectly imperfect.  So, let’s drop all this talk about tariffs and get back to the business of business.  It is a lot more fun and a lot more productive. 

There's a special place in hell!

  

 

Leadership is the purview of the few, not the many.  Therefore, leadership must be realized and treated as a privilege and not a right. We grant leadership to those whom we have determined best represent the qualities and aspirations that we hold for ourselves; and which we trust will be represented in character and in action by those who hold that position. 

It matters not if that role is in academia, religion, business, politics or any other aspect of society.  If you have aspired to and ultimately hold that responsibility...and accountability...you have a standard to uphold.  Those who choose to not fulfill their duties with integrity will be judged and disciplined in some manner.  Perhaps they are fired; perhaps that are deemed unfit and removed by edict; perhaps they are not re-elected.  Regardless, there are consequences that will ultimately, though perhaps not timely, be placed upon those leaders.  For those whose behavior is particularly egregious, the discipline may be particularly harsh. 

However, in many instances, there is a group of supplicants who have enabled the leader. They have witnessed and condoned, or they have been supportive of that leadership conduct which has been so contrary to the legitimate expectations that society holds.   

These enablers have different motives for their response.  Fear, lack of character, some other ulterior motive of self-aggrandizement, desire to be close to power with the opportunity to influence said power.  All of these and more are possible. The actual reason is immaterial.  These people had the opportunity...and the responsibility...to speak truth to power, and they failed!   

Unfortunately, the consequences of their failure fall much further than on only themselves.  All those who were not close enough to see the truth; those who were not in a position to influence the leader; those without a voice; these are the true victims of a leader’s misconduct.  Too often, those close to the flame abandon their responsibilities and seek shelter before the inevitable implosion at the top.  They leave with their spoils...perhaps even with their reputation intact.   

With the opportunity to say something, with the responsibility to do something, you declined. When the fire started you chose to not report it but to fan the flames.  

A leader who is out of control should have restraints. But they restraints are only as strong as those willing to hold fast to the truth.  Which will you be remembered for?  One who abdicated...or one who held fast.   

Know this, there is a special place in hell for the former and praise for the latter! If your legacy means anything to you, stand with truth.