TL;DR

US/Japan trade talks stalled, mirroring historical economic blunders. Expect little progress and lots of finger-pointing as both nations play chicken with their economies.

Story

Another day, another trade negotiation going nowhere. This time, it’s the US and Japan playing a game of diplomatic chicken, with tariffs as the weapon of choice. They smiled for the cameras, promised to chat again later, and achieved absolutely nothing.

‣ Tariff: A tax on imported goods.

This reminds me of a poker game where everyone knows everyone else is bluffing, but no one wants to fold first. Japan’s economy is drowning in debt, and the US isn’t much better. Both sides are desperate for a win, but neither wants to make the first move. Like two drunks arguing over the last slice of pizza, they’re both too stubborn to back down.

This charade is all too familiar. Think back to 2008—promises of deregulation and easy money led to a financial meltdown. Or Enron, where accounting tricks disguised a house of cards built on debt. This trade war feels like a rerun of history’s greatest hits, with a fresh coat of paint.

This is a story we’ve heard before. It’s a story about greed, power, and the willingness to sacrifice the little guy for a slightly bigger piece of the pie. And unless someone blinks first, this story will have a very unpleasant ending, for everyone involved.

‣ Neomercantilism: A protectionist trade policy.

This is the sad reality of international politics.

‣ Trade deficit: When a country imports more than it exports.

Advice

Don’t hold your breath for these trade negotiations. History shows us these disputes often end badly, especially for the average citizen. Keep your portfolio diversified, because things are about to get bumpy.

Source

https://www.reddit.com/r/wallstreetbets/comments/1k12e3f/little_progress_made_on_usjapan_tariff/