Registered Investment Adviser Caleb Lawrence
Growing financial stress sent the major averages into the final hour about even despite a higher opening.
In addition to the steel and aluminum tariffs on tap Friday. China will most likely get hit with substantial additional tariffs totaling some 60 billion on technology, telecom, and intellectual property. It’s fairly well understood that for every action there is an opposite reaction and China has already vowed to retaliate. Similar grumblings were of course voiced by our European trading partners as well in response to the metal tariffs.
The last 6-months has seen the national debt spike 1.2 trillion to 21 trillion Dollars largely to fund Trumps tax handout to the 10% and corporations. The little people, aka the 90% got very little out of the deal. A trillion here and a trillion there and pretty soon you’re talking about real money. The 6% increase in the national debt over the last 6-months pushed the Debt to GDP or Gross Domestic Product ratio to 106.4%. Add the various unfunded Social Security, Pension and Medicare benefits obligations and you can easily double that figure. I suspect that quite soon another harsh lesson in the hazards of excessive debt is going to get writ large on the broader economy and citizenry.