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Trump tries another 911 with tariffs but it won’t work
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US President Donald Trump pulled off another 911-type surprise by imposing massive tariffs on most US trading partners. The reason it is a 911-type event is because both the tariffs and 911 were reactions to Chinese demands that the US return gold they borrowed or else face bankruptcy. It turns out Trump’s handler in this case is Commerce Secretary Howard Lutnick. You can see him behind Trump in this photo.
Back on September 11, 2001, Lutnick just happened not to show up for work when most of the employees of his company Cantor Fitzgerald were killed. Cantor Fitzgerald is one of the few financial institutions allowed to get money directly from the Federal Reserve Board’s magical money fountain. On September 12, 2001, the government was supposed to give back Chinese royal gold lent to the Federal Reserve Board in 1938. Instead, the US government staged 911 and sent what was left of the Chinese gold to the Nazis in Paraguay. The US then invaded Iraq to steal oil to pay off the Chinese and avoid a default.
This time, Trump is hoping to use tariffs to get money to pay the Chinese and end the chronic trade deficit that makes the US financially dependent on China. Some sort of attempt to deal with the deficit is long overdue but, the tariff approach is way too little and way too late. Basic math shows it will fail.
The United States has run a trade deficit with the rest of the world for 49 years or since 1976. As a result they have accumulated $37 trillion of debt. The Trump administration expects the tariffs will bring in $600 billion a year meaning it would take 61 years to pay off all the debt with this tariff income. Furthermore, this will not help with the $250 trillion in unfunded US liabilities.
The Trump regime has also said tariffs will make income tax unnecessary. As a result, many Americans have decided to stop paying income taxes, meaning $500 billion less is expected when taxes come due on April 15th, wiping out most tariff gains.
We understand Trump wants to use the tariffs to rebuild US manufacturing capacity. However, as Peter Schiff points out:
If the U.S. is going to start building factories and developing the necessary infrastructure and supply chains, what are we going to stop doing to pay for it? One thing is shopping. Americans are going to have to sharply reduce spending and increase savings.
But this means a severe recession with exploding budget deficits as spending rises and tax revenue plunges. Tariffs won’t help much as if consumers buy less, imports fall sharply, undercutting tax revenue. That means deficits will crowd out all the savings necessary to finance the re-industrialization of America.
Also, as foreign investors will no longer be recycling their large trade surpluses into our treasury market, who will buy the $26 trillion in existing Treasuries that will mature over the next four years? If Americans have to buy all that debt, where will the money come from to build factories?
The only way to enable the necessary capital investment will be for the government to slash spending during the recession, including on entitlements and defense, and likely default on the national debt. https://www.theburningplatform.com/2025/04/05/why-trumps-plan-cant-work/#more-364291
The tariffs will deprive the average US household of about $7300 of purchasing power per year.
https://tass.com/world/1938529
The head of MI6 says “Mr. Trump is causing economic chaos across the world at the moment and destabilizing the lay of the land. He needs to be contained firmly as do his handlers…All this chaos is purely a diversionary tactic to delay the inevitable.”
There is an easier answer Mr. Trump. There is a generous offer of virtually unlimited funding from the Dragon family sitting on his desk. The Dragon family controls most of the real money in the world because the Chinese have had huge trade surpluses (the mirror of US deficits) for decades. Also, while Americans consume 68% of their incomes and save only 4% the Chinese consume 39% and save 40%. The Chinese have used their savings to create more than twice the manufacturing capacity of the US. They have also done many clever things like using drones and robots to turn deserts green.
Also, only 14.8% of China’s total exports went to the United States in 2023 so the tariffs will not do too much damage to their economy.
However, the Chinese admit they have run into a brick wall and have more savings than they can profitably invest. Economic troubles may be one reason why 176,000 Chinese fled the country as political refugees in 2024; the greatest number since 1951, according to the UN.
This all means the Chinese would like nothing more than to spend their savings on things like building giant factories and bullet train networks in the US. Many of them would also like to live in the US.
The Chinese government officially responded to Trump’s tariffs with this statement:
“Pressuring and threatening is not the correct way to engage with China. China-US economic and trade relations should be based on mutual benefit and win-win cooperation…[these] are the aspirations of all people, while economic coercion that pits nations against each other is bound to backfire.”
https://www.globaltimes.cn/page/202504/1331500.shtml
The Chinese ended their statement by saying “The world needs justice, not hegemony!”
Fear of justice and a wish to retain hegemony is maybe why Trump has refused to acknowledge the offer of unlimited funding.
However, justice is coming. Last week we heard independently from US space force, MI6 and Russian FSB sources that the Trump government would not survive beyond 2025.
These photographs explain part of the reason why they say this now:
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