Home Farm Bankruptcies Farm Bankruptcies Are Up In Trump’s Great Economy

Farm Bankruptcies Are Up In Trump’s Great Economy


Fed Chairman Jerome Powell gave investors a taste of things to come. The Feds decided to cut interest rates, but Powell said the cut was just a midcycle adjustment not an ongoing rate cut plan. But Powell made those comments before Trump got pissed at the Chinese for telling Mnuchin and Lighthizer they won’t sign his trade deal.

Trump immediately told the press he would add a 10 percent tariff on all Chinese products, and China will pay those tariffs. The stock market gave Trump a thumbs down when they heard the news. Hedge fund managers changed their long-term investment game plans to avoid a financial meltdown due to Trump’s trade war with China.

According to some reports, Trump knew additional tariffs would prolong the trade war. A longer trade war will force Powell to cut interest rates at once or twice more in 2019. Mr. Trump wants at least a one percent rate cut in order to hide his economic erosion, according to the New York Times. But several economists say rate cuts won’t help keep the U.S. out of a recession in 2020.

China is no longer America’s number one trade partner. Mexico is now number one. and That’s not good news, according to some American consumers. The trade war hurts China’s economy, but China’s central bank injects money into its consumer sector to soften the blow from Trump’s trade war. According to the Chinese news agency, Chinese consumers can live without American products.

Putin wants to ditch the dollar and use euros to get around U.S. sanctions. Putin and Trump had a sanction lifting deal in 2016, but Congress refused to lift the sanctions, according to the Post. So Putin decided to trade in euros on the world market. He also trades in rubles with India. The euro could take the dollar’s place in Russia’s export market. Europe and China also set up a pay-system that will help Iranian exporters and importers. That system makes Trump’s sanctions useless.

The farmers still think Trump’s tariff snake oil will cure what ails them even though farm bankruptcies are sky high. The farmers think Trump will bring China to its knees. But just in case he doesn’t, he raised the debt ceiling in farm-related bankruptcies.

The U.S. economy is not as great as Trump claims. And it will get worse once Trump decides to add additional tariffs to European autos and all Chinese products, according to the Post.