Tapate50
Well-known member
Inflation is transitory !
Trumps stormtroopers !
Obesity doesn’t hinder covid outcomes !
Economics Thread
- Thread starter sturg33
- Start date
Inflation is transitory !
Trumps stormtroopers !
Obesity doesn’t hinder covid outcomes !
I hope Trump can be his own man, and not worry about Musks wants/needs when it comes the tariffs and China.
Tapate50
Well-known member
I’m not sure this is a good look for Cohen.
Labor force growing ? I mean people came back to work after Covid and employers still can’t find people who satisfy the three basic requirements of a decent job
I’m confused. That seems to reinforce what Cohen is saying. If there is already a shortage of qualified labor, how will more investment and fewer people fill the additional labor demands that would create that growth? If anything, this is probably an even better time to be in the automation business than it was before.
chop2chip
Well-known member
Consider the context, he's speaking to investors about the short term (this year) outlook of the economy . Smaller labor pool, less cash in circulation, tariffs impacting consumer spending, etc. I'm not sure any reasonable person would argue these wouldn't adversely affect short term investor confidence.
Whether that short term pain is worth it in the long run is a separate discussion.
FWIW, I'm supportive of Trump's immigration policy and DOGE. For the first time in my life, I have hope that congress may have the balls to actually cut spending. If that means in the short term the economy retracts a bit, so be it. As for tariffs, I'm not sold on the long term "vision" is worth the damage it will do to our relationships with key allies and the higher prices you and I will be paying. My hope is that all these evil, wicked billionaires will keep Trump at bay (I think so).
acesfull86
Well-known member
https://www.barrons.com/articles/weak-dollar-trump-vance-reserve-currency-6851b258?st=e6mckE
Both Trump and Vice President JD Vance have, for some years, been outspoken in support of a weaker dollar. They believe that depreciation will cut the U.S. trade deficit and help U.S. manufacturers and exporters. But they have also contradicted themselves, and each other, repeatedly on matters that have a strong and enduring impact on the level of the dollar.
First and foremost among these contradictions is their view on the dollar’s role as the dominant central-bank reserve currency and its outsize use in international trade. On Jan. 30, the president thundered a threat at the “seemingly hostile” countries that make up the BRICS group—Brazil, Russia, India, China, and South Africa. “They will neither create a new BRICS Currency, nor back any other Currency to replace the mighty U.S. Dollar,” Trump warned. But if they do, they “will face 100% Tariffs.”
The irony is rich and multilayered. First, the BRICS nations are seeking alternatives to the dollar specifically to escape proliferating unilateral U.S. financial sanctions, yet the president is threatening more such—in the form of 100% import tariffs—if they proceed. Second, the dollar’s dominant role in reserves and trade is a major factor keeping its value higher than it would be if other currencies played or shared that role. Third, Vance in 2023 referred to the dollar’s “reserve currency status” as “a massive tax on American producers.” It fueled, the then-senator said, “our mass consumption of mostly useless imports, on the one hand, and our hollowed-out industrial base on the other.”
The two men cannot both be right. And indeed Trump himself, notwithstanding his famed claim to be a “very stable genius,” is ensnared in a logical knot. Either the dollar must remain “mighty” and dominant, or it must shed this albatross and fall to a level more favorable to U.S. exports. To demand that the dollar do both is as illogical as to demand that tariffs raise import revenue while at the same time stopping imports. (But perhaps I digress.)
Both Trump and Vice President JD Vance have, for some years, been outspoken in support of a weaker dollar. They believe that depreciation will cut the U.S. trade deficit and help U.S. manufacturers and exporters. But they have also contradicted themselves, and each other, repeatedly on matters that have a strong and enduring impact on the level of the dollar.
First and foremost among these contradictions is their view on the dollar’s role as the dominant central-bank reserve currency and its outsize use in international trade. On Jan. 30, the president thundered a threat at the “seemingly hostile” countries that make up the BRICS group—Brazil, Russia, India, China, and South Africa. “They will neither create a new BRICS Currency, nor back any other Currency to replace the mighty U.S. Dollar,” Trump warned. But if they do, they “will face 100% Tariffs.”
The irony is rich and multilayered. First, the BRICS nations are seeking alternatives to the dollar specifically to escape proliferating unilateral U.S. financial sanctions, yet the president is threatening more such—in the form of 100% import tariffs—if they proceed. Second, the dollar’s dominant role in reserves and trade is a major factor keeping its value higher than it would be if other currencies played or shared that role. Third, Vance in 2023 referred to the dollar’s “reserve currency status” as “a massive tax on American producers.” It fueled, the then-senator said, “our mass consumption of mostly useless imports, on the one hand, and our hollowed-out industrial base on the other.”
The two men cannot both be right. And indeed Trump himself, notwithstanding his famed claim to be a “very stable genius,” is ensnared in a logical knot. Either the dollar must remain “mighty” and dominant, or it must shed this albatross and fall to a level more favorable to U.S. exports. To demand that the dollar do both is as illogical as to demand that tariffs raise import revenue while at the same time stopping imports. (But perhaps I digress.)
chop2chip
Well-known member
One of my hobbies is building PCs. Many of the main pc components manufacturers have already risen 10% since the China tariffs went into effect.
Is what it is
COGS go up closer till tariff rates. You are the distribution/warrhiuse in this. If you sold these pcs to a third party you wouldn’t increase your sales price by 10%
chop2chip
Well-known member
"We will have to adjust the end user price to reflect the tariff," said Acer CEO Jason Chen in an interview with The Telegraph. "We think 10 percent probably will be the default price increase because of the import tax. It’s very straightforward."
But he probably would sell it by at least the amount of added cost per unit. It’s not a new revelation to say that some things are made of multiple parts. The more it costs to make those components, the higher the prices will be, even if it’s not 1:1 in percentages. If the tariff raises the price of a component by 10% or say $50, the price of the final good won’t be ten percent higher but it will likely be $50 higher. Percentages won’t much make a difference to the consumer buying something for $2050 instead of $2000 because of the tariff.
Leveraging tariffs to increase Gross Profit / EBITDA Margin - Seems legitimate business case.
GoT
High School Draftee
its always something...
factory fire in taiwan, shipping shortage/delays.... something
zitothebrave
Connoisseur of Minors
I mean GPU prices have been ****ed since COVID so I gave up on the PC building as a hobby thing for a long time. I never built new rigs but I used to every year pick a part of my system to upgrade, like one year it's my GPU, the next it's the processor and MoBo (I have a reputation of breaking my processor pins when removing them so I decided to say **** it and just do both) Also means I don't need to ever stock thermal paste. Anyway. Now I just rock with what I got. I had a 2070 super for years. Now I'm on a 4060 TI. I thought about upgrading it to a 4070 super but then who the hell cares anymore, why spend at least 600 bucks to not really improve what I'm playing.
My adult ass is struggling to find time to play anything other than like a few hours a day. I picked up Avowed from game pass. ANd just gave up.
I wind up playing old games half the time anyway, going back to play games like DoSII, Megaman legacy collection, Bioshock, etc.