Image Source: PexelsStocks were reeling overnight, in reaction to Trump’s intended imposition of fairly draconian tariffs on some of the US’ biggest trading partners.It is fairly well established in economics and history that tariffs tend to exacerbate the conditions of the economies involved.Well, perhaps this time is different.I can already see the true believers trying to rationalize what is going on. ‘Tariffs are like taxes’, they say, ‘and that money flows into the Treasury, which is a good thing for our deficit.’What is ironic is that these words come from the mouth of someone who would condemn an income tax increase on the wealthy as an abomination. Well, we will see a lot more of that sort of thing going on. But I suspect things are going to be getting worse, a lot worse.Stocks managed to find a footing and brought themselves back closer to the closing prices on Friday.Last night I speculated that might happen.Gold and silver managed to rise back from their overnight selloff and come back to a modest gain.The Dollar has rallied overnight but fell back during the day.So, Mexico has averted the crisis for now, by sending its troops to the US border to ‘restore order.’Canada has decided to stop drinking Southern Comfort, Jim Beam, and Jack Daniels.Denmark is trying to cut a deal to avoid a US Anschluss in Greenland.The spines in Congress are turning to dust. And the media is playing its role as gracious acolytes to power.Rough seas ahead, matey.Have a pleasant evening.
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