TL;DR
Trump’s trade wars threaten to trigger a global depression, mirroring the 1930s. It’s a 50/50 chance of economic collapse, according to the ICC—a gamble with the world’s future.
Story
History doesn’t repeat itself, but it rhymes. The 1930s echo in today’s trade wars, reminding us how fragile prosperity is. Trump’s tariffs, like those of the past, threaten a global depression.
Here’s how it unfolds:
‣ Tariffs: Taxes on imported goods, making them more expensive. Think of it as a penalty for buying from other countries.
Higher prices deter consumers. Businesses suffer, layoffs follow. The dominoes topple.
‣ Retaliation: Other countries respond with their own tariffs, creating a trade war. Imagine a playground brawl, but with entire nations.
Global trade shrinks. Everyone loses. It’s a race to the bottom.
‣ Depression: Reduced trade and consumption trigger a global economic downturn. Businesses collapse, unemployment soars, and poverty spreads like wildfire.
This isn’t just theoretical. The 1930s prove it can happen. Trump’s actions mirror those that led to the Great Depression. Are we doomed to repeat the mistakes of the past? The signs are ominous. Like a house of cards built on debt and greed, the global economy is teetering on the brink of collapse. The ICC warns of a 50/50 chance of a new Great Depression.
Trump’s focus on short-term gains ignores long-term consequences. His “America First” policy could isolate the U.S., crippling the global economy. It’s like burning down the house to get rid of a few termites.
This time, the stakes are even higher. The interconnectedness of the global economy means a faster, more widespread collapse. The 2008 financial crisis was a preview. Imagine that, but amplified tenfold.
The human cost is unimaginable. Lost jobs, homes, and livelihoods. Retirement savings vanish overnight. The American dream turns into a nightmare. This is not fear-mongering; it’s a realistic assessment of the potential consequences.
Advice
Diversify your investments. Hold some cash. Prepare for the worst. Hope for the best. But understand, hope isn’t a strategy.
Source
https://www.reddit.com/r/stocks/comments/1j3f96l/tariff_war_risks_sinking_world_into_new_great/