TRUMP, BESSENT ARE DELIBERATELY SENDING THE US ECO INTO A DEATH SPIRAL FIGURE SHOWS HOW CREDIT OF AVERAGE AMERICAN TURNED FROM AN AVERAGE OF 15% IN SAVINGS BEFORE FED PRIVATIZATION IN 1913 TO DEBT TODAY

 A fitgure shows why US consumers one hundred and ten years after the privatization of the Fed cannot afford higher prices cause by tariffs.

http://www.gabriel-zucman.eu/files/capitalisback/F114

A net savings rate of about 15% during the time of the McKinley tariffs has turned into net debt.

The decline can be seen to start after the Fed was privatized in 1913 and money that could be saved started to have to be used to pay taxes for the interest on the government debt due to its privatization of the money, legal tender.

Savings increased during WW2 and in the boom afterwards but have declined ever since in proportion to the growing national debt to the private bankers.

The only thing that can MAGA is sound money.

Tariffs in 2025 can only work with the Treasury or Fed printing free money to fund investment and consumption as in China.

Without that, the US is heading for a disaster, for a stock market crash as consumers have no money to buy and businesses have no customers.

Import tariffs make it more expensive for its consumers to buy goods abroad, in the hope of replacing those goods with domestically manufactured equivalents that in Free trade conditions would not be purchased from abroad because the new US products are just as good

Tariffs makes the foreign product less affordable to US consumers.

As a result, US consumers will find they have less choice or that the imports are more expensive leaving them with less money, leading to a contraction in demand and a recession.

Domestic producers can exploit the absence of competition to hike prices and produce less good quality goods. 

Meanwhile, US products face a reciprocal tariff and become less attractive to customers abroad.

There is an Export clause in the Constitution which forbids taxes on exports.

The US importers pays tariffs to have their products released from customs.

The buyer in the US must pay because either the tariffs are added to the cost, generally with a  markup or the consumer is forced to buy a more expensive domestic product.

The Federal Reserve is mandated to ensure full employment and as a recession bites and unemployment rises, it would change its monetary policy to lower interest, increase the money supply, to stimulte demand and so employment. 

The increase in money supply likely lead to inflation and to price increases.

As a recession bites, tax revenue will fall. The govenrment will have to make more cuts to keep on funding interest payments to the private bankers causing social unrest.

We can guess Trump and his cronies are planning martial law, civil war or WW3 in the next couple of months before the public fully realize the extent to which he has swindled them.

It looks like part of deception was delaying until the last moment the announcement of the tariff plan to prevent scrutiny and to be able to take the public by sutprise.

Aware that his MAGA base is already becoming disenchanted by the Billionaires like Musk as the Wisconsin result showed, Trump and his oligarch cronies may have moved the self demoliton of the US economy under the guise of tariffs forward.

Parallel, there has been an assault by Musk and Trump on the federal courts, the judiciary.

Plus, Trump s team is assaulting the legislative branch by conducting vital natonal business on a commercial Signal App outside the scrutinty of Congress and the voters.

Plans for an attack on Iran and China seem pre determined.

However, as the US has no conventioal military means to win a war against Iran and China, it wll likely soon go nuclear with China eviscerating the USA.

As for Trump, Soros, Bessent, Gates, they will find they have no place to hide in 2025 caught between a furious public and the Chinese and Russians.