Needless to say, the American economy is sinking into its sunset years because it is being crushed by the State. As we have been saying all along, this baleful condition stems from the fiscal calamity of the Warfare State/Welfare State juggernaut; and also the central banking branch of the State, the Fed, whose Bubble Finance policies are systematically crushing workers, savers and main street investment in productivity and growth.
But it is now evident that a third prong to the attack on main street prosperity has come front and center. We are referring, of course, to the Donald’s horribly misguided wars — that is, his trade wars and his border wars.
With respect to trade he is truly going over the deep-end by not only threatening 10-25% tariffs on 91% of Chinese goods which end up on the shelves of Wal-Mart, Amazon et. al., but also even going after European cars: