HUGE! TRUMP RESTARTS AMERICAN BOOM WITH TARIFFS, ABOLITION OF FED TAXES GAMBLE CAN WORK WITH A FEW TWEAKS, MAY DESTROY MEXICAN AND CANDIAN ECONOMY

GOOD ECONOMIC, MATH MODEL WITH CONTINUELY UPDATED REAL TIME STATISTICS SHOULD HELP TRUMP SQUARE THE CIRCLE AND PUT UP TARIFFS, STIMULATE DOMESTIC DEMAND, FUND INVESTMENTS, KEEP INFLATION LOW, ABOLISH FED TAXES AND RESTORE THE BOOMING ECONOMY BEFORE 1913

OPTION OF ORDERING THE TREASURY, FED TO PRINT DEBT FREE MONEY AND GIVE CASH FREE GRANTS TO MANUFACTURERS, ENERGY PRODUCERS IS VITAL TO GET US STUFF INTO THE MARKET QUICKLY AT LOW COST AND KEEP INFLATION LOW

CAN DRAIN MONEY FROM THE ECONOMY USING CENTRAL BANK OPERATIONS WITHOUT RAISING INTEREST RATES LIKE THE PBOC

PLAN CAN GO PEAR SHAPED WITHOUT A HOLISTIC FINANCIAL, ECONOMIC APPROACH 

THOUSANDS OF BUSINESSES COULD BE SHUT AND MILLIONS OF JOBS COULD BE LOST IN MEXICO ALONE, 80% OF EXPORTS GO TO THE USA

GERMAN CAR MAKERS WHO EXPORT MILLIONS OF CARS TO THE USA, LARGELY MADE IN MEXICO,   WILL SUFFER BILLIONS IN LOSSES

THEIR CARS WILL NOW BE 3000 TO 6000 DOLLARS MORE EXPENSIVE

ARE THE TARIFFS THE FINAL NAIL IN THE COFFIN OF THE GERMAN CAR INDUSTRY LOSING MARKET SHARE IN CHINA AND NOW THE USA WITH GERMANY IN RECESSION?

Trump is paving the way for restoring American prosperity by returning to the widly successful economic model of the USA before the Federal Reserve was privatized in 1913 and Federal taxes were introduced (to pay for the exorbitatn cost of privatizing the money supply) when tariffs were the main source of government revenue.

Yesterday, he announced 25% tariffs on Canada and Mexico and 10% tariffs on China.

German car makers especially who have based their plants in Mexcio and Canada, including Volkswagen and BMW, will have few options but to pay the extra tariffs or face bankruptcy given the fact most of the cars they produce are destined for export to the USA.

If Trump abolishes federal taxes, he can release a wave of consumer spending which would help US car and other manufacturers pay for new investments to fill the gap left by exports  especially from Mexico in the form of fridges, computers, screens, cars and car parts.

In addition, if Trump orders the Treasury or Fed Reserve to print money without debt  and give cash grants which do not have to be repaid to fund investment, he can kickstart an investment boom also in the vital energy sector.

With a significant part of  US energy consumers dependent on Canadian oil, slapped with a lower tariff of just 10%, it is vital to bring new oil fields and gas fields in the USA online and stop exporting energy to keep the prices of energy low.

Low energy pirces will keep inflation low.

China s booming economy also benefits from low energy costs of 8 to 9 cents per kilowatt hour, about a fifth of the cost of energy in Germany, estimates MMNEWS

In China kostet die Kilowattstunde Strom 8 bis 9 Cent. In Deutschland ist sie 3 bis 4-mal teurer. Rechnet man die vielen Subventionen aus  Steuergeldern und die Kosten für CO2-Zertifikate hinzu, liegen die Strompreise deutlich über 50 Cent/kWh. Mit den hohen Energiekosten,  die verdeckten Subventionen noch nicht mal berücksichtigt, kann kein Betrieb in Deutschland mit China konkurrieren. Die Energiewende ist  gescheitert. Es wird höchste Zeit, China in der Energiepolitik zu folgen.

https://www.mmnews.de/wirtschaft/228909-energiewende-von-china-lernen

The risk of inflation can be controlled by economic models fed with accurate real time data to ensure that the  amount of stuff available in the US for consumers and businesses increases fast enough to offset any losses from tariffs at the lowest possible cost.

Debt free money and cash grants keeps the cost of investments low as businesses do not have to pay interest. This is a major reason for the economic boom of China, according to Professor Franz Hoermann. 

China s central bank pays for the cash free grants using single entry book keeping costing the state nothing. The money flows into businesses and industry as well as to energy markets to increase supply.

https://www.derstandard.at/story/1285200656759/banken-erfinden-geld-aus-luft

The impact of  Trump s tariffs on German car makers who use Mexico and also Canada as low cost production locations for their exposts into the USA could add between 3000 and 6000 dollars to the price tag of their cars, making American models more attractive to US consumers.

Mexico and Canada s economy are  heavily dependent on exports to the USA. 

The USA export far less from Mexico and Canada than it imports, creating large trade deficits.

80% of Mexico s exports go to the USA, making it especially vulnerable to tariffs.

The imposition of tariffs could mean thousands of businesses close, and millions of jobs are lost, inflation,  a recession and a devaluation of the Peso and Canadian dollar (which, in turn, could help exports).

Particularly hard hit will be German car makers like Volkswagen, BMW and Audi. 

Volkswagen's factory in Puebla is the largest auto plant in Mexico and one of the largest in the Volkswagen Group, according to the  carmaker's website. Nearly 350,000 cars were made there in 2023, including the Jetta, Tiguan and Taos, all for export to the U.S.

In Canada, Volkswagen is building a battery gigafactory in St. Thomas, Ontario, investing up to C$7 billion ($4.9 billion) with a view to use  the batteries for cars it sells in North America. Production is expected to begin by 2027.

https://uk.finance.yahoo.com/news/global-car-industry-firing-line-103640762.html

Audi alone exports 40% of its cars to the USA.

Mexiko ist der wichtigste Handelspartner der USA. Kein anderes Land exportiert mehr in die Vereinigten Staaten. Trumps Zollpolitik dürfte 

 Ökonomen zufolge beiden Volkswirtschaften durch höhere Inflation und den Verlust von Arbeitsplätzen schaden. Mexiko schließt 

 Gegenzölle nicht aus. Mehr als 80 Prozent der gesamten Ausfuhren Mexikos gehen in die USA. Tausende Unternehmen und Millionen Jobs  hängen davon ab.

Zölle gegen Mexiko dürften auch Unternehmen aus Deutschland hart treffen, vor allem die Autoindustrie. Fast alle Hersteller und auch viele  Zulieferer nutzen Mexiko als billigen Produktionsstandort und bedienen von dort aus den US-Markt. VW, Audi und BMW haben in dem 

Land eigene Fabriken, Mercedes-Benz produziert in einem Gemeinschaftswerk mit Nissan. Und allein bei Audi gehen 98 Prozent der  Autos in den Export, davon 40 Prozent in die USA.

https://www.handelsblatt.com/politik/international/usa-so-treffen-trumps-zoelle-schon-jetzt-die-deutsche-autoindustrie/100105012.html

From media

Pitching a monumental and potentially controversial proposal to his Republican allies, President Donald Trump is seemingly floating the idea of scrapping federal income taxes altogether.

"We had no income tax. The income tax came in…1913. As I said in my speech last week, instead of taxing our citizens to enrich foreign nations, we should be tariffing and taxing foreign nations to enrich our citizens," Trump said during his conference address in Doral, Florida, on Monday.

"It's time for the United States to return to the system that made us richer and more powerful than ever before," he added. "You know, the United States in 1870 to 1913, all tariffs. And that was the richest period in the history of the United States, relatively speaking."

The first federal income tax was passed on Feb. 25, 1913, as part of the 16th Amendment. This gave Congress constitutional authority to levy taxes on corporate and individual income, according to the Internal Revenue Service (IRS).

U.S. Treasury data indicates that $4.92 trillion was collected in federal income taxes for the 2023 filing year. But as Trump plans to create a new "External Revenue Service" that would be tasked with collecting revenue from tariffs, economists and market experts seem mixed, with some pushing back and noting that U.S. importers bear the brunt of the cost of tariffs rather than firms overseas.

https://www.foxbusiness.com/media/trump-proposes-abolishment-federal-income-tax-bringing-us-back-richest-period-history