We have a surplus they announced yesterday, we did less deficit spending than before. hooray.
We brought in 80 billion from Tariffs in Sept we are awesome.
So then Trump pledges 20 to 40 billion of it to Argentina. Johnson says farmers need at least 10 billion bailout, others report it's closer to 13-15 billion and then NY Times said GOP Senators told them it may end up being closer to FIFTY billion by the time they're done bailing out farmers, THIS YEAR!
But wait there's more, the US Auto industry is in major trouble due to tariffs and have been lobbying Trump for months. Today Taco suggested he will NOT keep the China tariffs on cars so high going forward. So some of that tariff money will get cut. In the same discussion they said they are open to looking at subsidies for car makers, that is a nice word for another bailout!
So Trump bankrupts farmers and we'll have to bail them out. Now he wants to also bail out car companies. So that 80 billion in tariff money is already gone between Argentina, farmers and car companies.
He wanted to use R and D money for DOD and Darpa to pay the military, which is not legal even in a shutdown he does NOT have the authority to authorize that only Congress does, and they are shut down. The money is already allocated he can't just spend it where he chooses.
In the NYT story about farmers they also said if farmers don't get bailed out VERY soon, food prices will soar because they can't do the planning and spending they need to do for the future so the only way to get money will be price hikes. Car prices are going to go up for the exact same reason. A big car parts company declared BK recently and it turns out they have all sorts of money missing, huge risky loans and a bunch of other stuff that nobody saw because some idiot cut federal oversight. Guess what finally pushed them into BK? Tariffs, they told their creditors due to the massive tariffs they were unable to make their loan payments, the creditors investigated and then found there's over 2 billion dollars missing. So the tariffs contributed to a big bankruptcy. So what right? Well then yesterday 2 big banks, one of them Zion's, got destroyed in the markets because surprise, they were directly impacted by the car parts BK, they're both among the biggest creditors and now have to take big write offs
Do we we see where this is going? Tariffs put companies in peril, if they don't get a bailout, they go BK, and that puts banks in peril.