Written by Bryan Lutz, Editor at Dollarcollapse.com:
Every Sunday I like to take time to reflect on what’s happened over the past week, and then share it with you…
So I get up early, sit down and start typing.
Sometimes these thoughts end up being about life, other times they are on gold, geopolitical issues effecting the markets, or the economy.
Here are three thoughts for this morning:
1. Buffett calls tariffs what they are, an “act of war.”
Do you know that “Liberation Day” in the Netherlands is a day which celebrates the end of the Nazi occupation during World War II and the liberation of the Netherlands by Allied forces in 1945?
It is interesting how the term can be reframed so freely…
On April 2 last week, Trump declared “Liberation Day” because he sees Tariffs as a reparations for all the benefits the US has been giving the world.
His act on “Liberation Day?”
Revenge, or reparations…
Take your pick.
Neither are free market…
This is what he did:
He initiated reciprocal tariffs on every country tariffing US exports.
Tit for Tat…
An eye for an eye…
Fracturing long-time alliances between Canada, Europe, Mexico to create an “us vs. them” mentality.
Now, they are undermining the mutual interests that free trade cultivates.
This understanding is nothing new…
In his book, “Omnipotent Government” (1944), Economist Ludwig Von Mises says,
“The philosophy of protectionism is a philosophy of war. The logical outcome of protectionism is war.
A nation can pursue a policy of economic nationalism only by fighting all those who cling to the ideal of free trade…
…The policy of each nation to further its own interests at the expense of others creates conflict and leads to war.”
In his grandfatherly public image, Buffett said the same about one month ago…
What do you think these tariffs will lead to?
2. Printing money and bringing in over 1 million immigrants per year into Canada has made affordable housing almost impossible for the average Canadian. Yet, Mark Carney, Canada’s new PM, has a big plan to fix it by tripling down on more of what’s wrong.
In 2015, Trudeau promised to lower the cost of housing while at the same time promoting hyper-immigration.
So far, it hasn’t worked out.
Canada held its own against the Federal Reserve money printer in the early 2000s by lowering government spending and creating a surplus.
Then Trudeau was elected in 2015.
The government ran deficits with the motto “The budget will balance itself.”
It never has…
Instead, everything go more expensive including housing.
Because more immigrants meant more demand for housing, while supply has always been too low along Canada’s limited Southren border space.
Now, real home prices to real disposable income doesn’t look good.
Especially when compared to the United States.
Even so, the new Canadian Liberal party leader, Mark Carney is all for more of both…
More money printing to solve the “climate problem.”
And more rapid immigration, tripling down on the Canadian population by the year 2100.
The National Post reports:
The ‘Century Initiative’ is the talk of the campaign, but what is it?
“…Liberal Leader Mark Carney added Century Initiative co-founder Mark Wiseman to his advisory council on Canada-U.S. relations last week.
Poilievre said Friday, at a pre-writ skilled trades announcement in suburban Ottawa, the appointment shows the Liberal leader shares the group’s controversial vision for a more crowded Canada.
“By bringing on Mr. Wiseman, it shows that Mark Carney supports the Liberal Century Initiative to nearly triple our population to 100 million people,” Poilievre said in response to a question on the topic.
“That is the radical Liberal agenda on immigration.”
Poilievre promised to “stop the radical Century Initiative” at his Ottawa campaign launch on Sunday.”
I can’t see Canadian voting for more of this.
Can you?
3. The SPX went down over 20% last week. Are Trump tariffs really going to make America great again or is this the big crash we’ve been waiting for?
Trump has been bragging about how he made the US stock market skyrocket in his first term.
And now he’s going to do the same?
So far the market looks like this.
Last week, the SPX plunged over 20%.
It’s down below the 200 Day Moving Average.
The biggest difference since the Great Financial Crisis in 2009.
So tomorrow we are looking at the market going two ways.
Either it plunges down further, or…
It heads back up toward the moving average.
The last time this happened (2007 – 2009), it took over a year and half for the SPX to move above the 200 Day Moving Average again.
Is this the big crash we’ve been anticipating?
If it is, remember gold, silver and hard assets will crash with the economy, but they are also the first to recover.
This is just the first phase in what our Publisher, Mark Jeftovic calls a monetary reset, or Monetary Regime Change.
