Watch the news
In the world of political policies I can only be someone that reacts. I do not have a seat at the big table and no one asks for my opinion on anything. Knowing that today is T day where the American economy is supposed to change I am left with a bit of a So what happened reaction. Or in other terms keep in mind that tomorrow is Groundhog Day. What happened last year or next year might be slightly different but on the whole we will not really notice or remember. Someone asked what would the Americans need to do to replace all of the aluminum that they are now saying they do not want. The response was unexpected. They would need to build a half dozen huge power dams. Not going to happen short term. Rather those who are buying aluminum will continue to do so recognizing that the cost will rise. And they will pass the tiny change in cost onto their consumers realizing that there is no way to replace that supply short term. The same thing holds true for almost anything else that will be affected by suddenly imposed tariffs. With that in mind I will sleep better tonight. What I do realize is that this situation is not completely new. The reason why we have those huge documents called trade agreements is because this same problem occurs again and again. We all want a good deal for ourselves and we’re willing to endure short term pain in order to guarantee that we will become richer and more comfortable. The whole point of economy I guess. I do like that the news stations are listening also and trying to guess what will happen next. A bit like forecasting the weather. We know it will be cold short term but warmer later. It’s a cyclical thing much like the afore mentioned Groundhog Day meme. I like Groundhog Day because it reminds me that we are not able to accurately forecast anything except for daylight and darkness. Keep watching the news. Try not to panic. Remember that history repeats itself over and over again.
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