Poorer Americans shortly.

[Old Crank]

An economist friend sent me this article. If you need a quick summary of the damage to the US economy that could happen read this. Plane simple language explaining Trump's damaging tariffs. Following what is mainstream economic reasoning.


Edited to fit DU restrictions.

Here is a link that works, Courtesy of Bernardo de La Paz

https://umairhaque.substack.com/p/the-reality-of-trumps-economy-or


The Reality of Trump’s Economy, Or, Why Americans Are About to Get a Lot Poorer
umair haque
·
Aug 19, 2025
It’s criminal that I have to write this, but…I’ve rarely seen such levels of willful delusion. So let’s go through a few basics. About the economy, Trump, the “trade deals,” the tariffs, and what the effects will be. Because Americans, bombarded by propaganda, are badly deluded about it all.

Right about now, Trump’s effectively struck “trade deals” putting in place 15%+ tariffs on America’s largest trading partners. This is being spun as a good thing. I’ve heard this, amazingly enough, from people’s financial advisors, and if yours are telling you this, run. Or at least back away slowly.

Americans pay the tariffs. We should all know this by now. Tariffs aren’t revenues paid by, say Europe, Japan, or anyone else. They are owed to the US government, by importers, who usually just pass the costs on to consumers. So let me say it again, because this Delusion Number One: they pay the tariffs! Those dirty foreigners! No, dumbo, you pay the tariffs. But that’s just the beginning.

Let’s talk about tariffs as a “corporate tax,” the spin being that somehow, corporations will eat the cost of the tariffs. The tariff rate is 15%+. The average profit margin of the S&P 500 is about 12%. Does that give you an indication of why companies don’t eat tariffs? Because this is what we see historically: they’re passed down the line. Now you can see why.


Written by umair haque

[Bayard]

1. Thanks for this info--saving it

We have a little bit of investments, but no retirement other than Social Security. We're getting pretty worried about losing our cushion.

Any suggestions from your buddy on that front?

[Old Crank]

4. Don't know right now.

A few years ago he was set up in annuities and TIPS, the federal inflation protected treasuries.
I asked him if he had some ideas.

We live in Germany and we took a tax hit with our investments, since they are mostly IRAs from rolled over 403b etc. and would be subjected to tax any way. We used a chunk as a down payment on a flat. That will fix a portion of our expenses for the next 10 years. But we aren't sure what to do with the rest. European bonds and stocks are under preforming and we get taxed at Germany rates when we pull money out. We will be pulling some over early in the new year to start paying down our note.
And holding our breath that Trump doesn't totally upset the cart before then....

[Old Crank]

5. Here is what he said

Just got an email back.

Other than what he told me this is where he is keeping a good part of his cash.
Laddered CDs mean you get a CD for a fixed term, then you wait a period of time and buy another one, and so on.
This gives you reasonable security for the investment, the chance to get a better rate when each one comes due and the ability to have cash available every so often.

"We have not tried to get creative about where to stash our savings, except for spreading it out among three different banks (2 banks and a credit union). About a third of our cash is in one-year CD's, laddered (i.e., 48 spread over the 12 months so that one comes due about every week. Our bank tried to encourage us to get into a $100,000 bond investment (not FDIC-insured) in late 2023, but we thought trump was going to be elected, and didn't want to tie up the cash.

I don't know if this is the best approach. But we're stashing away savings like the dickens."

[Bernardo de La Paz]

2. Link

https://umairhaque.substack.com/p/the-reality-of-trumps-economy-or

[Old Crank]

3. Thanks. I'll cut the article down to 4 paragraphs.