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The week's question
In December 2024, in the thread "Re: BRK: Why Not XOM?", BreckHutHigh asked the members: "What about the long road trips with kids?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
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Personal Finance / Macroeconomic Trends & Risks
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Author: OrmontUS   😊 😞
Number: of 4460 
Subject: Pick a finger
Date: 09/05/25 9:13 PM
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The US has spent a decade wooing India to become our ally. They ship a substantial quantity of fabrics, garments and cut gem-stones into the US.

So, President Trump told Prime Minister Modi of India that he had negotiated the cessation of the recent conflict between India and Pakistan with Pakistan and he wanted Modi to recommend him for the Nobel Peace Prize. Modi, who didn't want or need foreign meddling refused to nominate Trump. So, allegedly to punish Russia and force them to the bargaining table with Ukraine, President Trump heaped huge tariffs on India because they are the second largest customer in the world for Russian oil. Of course, he did not place tariffs on China, the largest purchaser of Russian oil (presumably because they can cut off supply of strategic rare earth magnets) nor tightened the screws on Russia itself. Rather than using the significant power of the US government to stifle the flow of capital into and out of Russia using our control of the SWIFT financial transfer system (or even applying tariffs on Russian products - for some reason they avoided the tariffs placed on other nations).

So, this week, while Russia continued to bomb the heck out of Ukraine while President Trump continues to ignore the fact that his ultimatums to Russia keep expiring without result or his carrying out any restraints, not only was Russia's Putin and Supreme Leader Kim Jong Un marching in lock-step with China's Secretary Xi, but so was Prime Minister Modi.

In the meantime, rather than increase the pressure that the US can bring to bear against Russia, Trump has blamed Europe for continuing to buy oil from Russia.

So, rather than support Ukraine by turning the thumb-screws on Russia and strengthening our ties with our allies, our leadership seems to be intent on ending the war by having Ukraine accept Russia's condition, while threatening to absorb one of our closest allies, invade a territory of another, break off support of many of the others and economically attack one with is (I think) the fourth largest economy in the world (and the most populous customer).

Just when you think things can't get more confusing, there is the possibility (I would say probability except the US Supreme Court seems to be willing to ignore precedence in applying the law, so anything is possible) that the tariffs will be judged illegal and the money already collected will have to be returned to the importers - causing windfall profits at the same time as the US treasury will be emptied and the American consumer will have paid for the whole debacle.

Jeff

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