For those struggling to understand, figure out or ask whether there is any sense to the lastest round of Trump idiocy. take a look at this.
Gary is an ordinary geezer who did well in the market and made himself rich.
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Yes, my Google search reveals the US economy contracted 0.3% in the first quarter of 2025, which is considered the first time since 2022. This decline is attributed, in part, to stockpiling by businesses anticipating tariffs, which also contributed to a sharp fall in the stock market.
Elaboration:
The Commerce Department reported a 0.3% contraction in the US economy during the first quarter of 2025. This is the first time since 2022 that the economy has experienced a contraction.
The stock market also experienced significant drops during this period, with the S&P 500 losing nearly 8%. This was partly due to tariff threats announced by the administration.
- Tariff-Related Stockpiling:
Economists believe that businesses stockpiled imports ahead of the tariffs, which likely contributed to the GDP contraction in the first quarter.
While the economy contracted, some indicators showed modest improvements. For example, mortgage rates declined slightly, and the labor market remained relatively stable, with the unemployment rate being at 4.2%.
Overall, the first 100 days of the Trump administration were marked by uncertainty, particularly regarding trade policy. This uncertainty may have also contributed to the economic contraction.
President Trump has made it clear he wants to smash the existing global economic order. In his first 100 days in office, he’s made significant progress in accomplishing that goal.
He has provoked the trade war scrapped treaties, and suggested that Washington might renege on its commitments to NATO. The resulting erosion of trust in the United States will be difficult to reverse. Even after Trump is gone, and he is hinted at wanting a third term, The US could elect another MAGA president.
As a result, allies are working to strike new trade partnerships, and build security alliances that exclude the United States. The European Union and South American countries recently created a new large trade zone. Canada‘s negotiating to join your military buildup to reduce its reliance on the United States and Britain in the European Union are working to finalize the defense pact.
Trump‘s abandonment of support for international institutions, strengthens the influence of China, the principal target of his efforts to use economic pressure. Trump has gutted the US agency for international development which delivered food and healthcare to the world’s poorest countries. This creates a vacuum that allows China to consolidate it’s economic ties to poor countries with abundant natural resources.
Trump is also slashing support for the federal government’s research and data collection capabilities and undermining America’s scientific excellence and competitive edge. This will undoubtedly create a brain drain as American and foreign researchers turn elsewhere for grants, jobs and academic freedom.
As a result of Trumps actions, we can expect to see the beginning of a global recession in the next 100 days.