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Expert: Cut all your extra expenses NOW and brace for downturn…

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MJ

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A financial expert I know, who has called every recession without fail, has always been ahead of the technology curve, and always been a reliable confidant to tell me what the economy is doing and where it’s going next, says people should cut all their extra expenses and brace for recession or even depression NOW.

In a recent conversation, he confirmed what I have been saying about Trump’s insane tariffism all along: it’s a recipe for complete economic failure. He explained that America has totally thrived under global trade, prices have remained somewhat affordable, and small businesses have been able to compete due to low import prices, but all of that is gone now.

He said the consequences of Trump’s tariffism are not fully seen yet because companies stocked up on inventory when Trump first announced tariffs, but as soon as that inventory is gone, product supply is going to be greatly reduced, and prices will soar. Worse, even if the tariffs are relaxed, it will take months, potentially even years, to restart the supply chain.

While I don’t have the same deep economic experience my friend has, all of my own independent research and analysis have yielded the same prediction. it’s actually common sense because there’s no way that corporations can absorb $300 billion a year in tariff losses and still remain afloat without massive negative impacts to their business model and the overall economy.

Trump and his team would have us believe that global trade is a horrible thing, and “globalists” are the enemies of America. But that’s not true. Global trade has been a wonderful thing for America for decades. The horrible thing is greed on the part of billionaires around the globe who are fleecing the vast majority of the people for their own selfish gain and enrichment, and that includes Trump and his friends at the very top of the food chain in America.

Some people will claim this view is anti-American, but it is not. The greatness of America is in its diversity. Diversity of thought, diversity of people, and diversity of products which have led to incredible product choice and product innovation. Without global competition, American product innovation would be nothing. Even the muscle cars of the earlier years were in constant competition with their counterpart over overseas to make the fastest and best car.

All that withstanding, hard times are coming because Trump is completely dismantling global trade and in the process dismantling all the companies that are reliant on it, including Ford, which just reported they will lose $2.5 billion in tariff fees this year alone. As much as they would love to make everything in America, it’s not entirely economically feasible, and forcing them to is the stuff of tyranny.

Whatever happened to free trade? Whatever happened to the free market? Aren’t libertarian republican types supposed to protect these values rather than tear them down? The answer is yes. The problem is we don’t have libertarian Republican types in Office. We have economic totalitarians in office. And all of us are going to pay severely for it.

So now is the time to cut all your extra expenses, start saving your money, embrace for economic impact, because it’s coming, whether we like it or not.

Then again a lot of people are already doing just that. Vegas reports almost 15% decline and tourism. American tourism is down 15%. Theme park tickets are down 15% or more. Entertainment venues are down 15% or more. Luxury and convenience item purchases are drastically decreasing. clearly people are already pennypinching and getting ready for a huge downturn. Word to the wise.

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One response to “Expert: Cut all your extra expenses NOW and brace for downturn…”

  1. Hank Martin

    It would be illogical to ignore the empirical evidence that now surrounds us: the age of easy and consequence-free monetary expansion has come to a definitive and arguably overdue conclusion. The economic patterns of the late 20th and early 21st centuries—characterized by unrestrained consumption, loose credit standards, and speculative excess—have not merely run their course; they have collapsed under the weight of accumulated folly and systemic misjudgment.
    Historically, the transformation of banking culture during the late 1970s and early 1980s—where once-staid financiers exchanged the discipline of the country club for the moral entropy of the strip club—heralded not an evolution, but a degeneration. The financial sector, once tethered to prudence and productive investment, turned instead toward abstraction, leverage, and risk for its own sake. The inevitable consequence was the subprime mortgage debacle of 2008, a financial supernova whose shockwaves have yet to fully dissipate. One might have surmised that such a catastrophic collapse would provoke structural reform or enduring humility. Yet such an outcome would presume a rational actor on the part of both government and markets—an assumption increasingly disproven by observable behavior. Instead, what followed was the unprecedented injection of liquidity by central banks, a strategy akin to treating systemic addiction with ever-higher doses of the intoxicant. The COVID-19 pandemic—and more significantly, the lockdowns that ensued—delivered an additional and unexpected blow. Global supply chains fractured, labor markets mutated, and whole sectors of the economy were artificially sustained through stimulus and deferral. We have, to put it succinctly, never fully recovered. Nor, given the confluence of inflation, deglobalization, and geopolitical instability, are we likely to return to the pre-pandemic status quo.
    With the imposition of widespread tariffs, another layer of cost has been added to a system already burdened by inefficiency. Trade, long the lubricant of economic growth, now functions more as a friction point between warring national interests. The consumer, inevitably, bears the burden. Thus, it is no longer rational to behave as though tomorrow does not exist—because tomorrow has arrived, and it is economically constrained! Consider: when $70 of groceries can be suspended from a single polyethylene bag gripped lightly by one’s little finger,, the economic reality becomes unmistakable. The illusions of limitless leisure—cruises, global tourism, and theme park indulgence—become less justifiable. This is not merely a matter of cost, but of priority. Indeed, in light of recent aviation safety failures, the aphorism “If it’s Boeing, I ain’t going” may have more than rhetorical resonance. Who, after all, would willingly pay a premium to experience discomfort, delay, and danger?
    Moreover, the artificial wage floors imposed in the name of justice have produced the unintended effect of reducing value. A minimum wage of $15 or more per hour might be tenable were it tied to increased productivity or service quality. But what society now experiences is a paradox: inflated prices for depreciated service. It is therefore only logical that consumers will rediscover the discipline—perhaps even the art—of preparing meals at home. This, however, introduces another irony: the appliances necessary for such self-sufficiency, from refrigerators to stoves to microwaves, have themselves become prohibitively expensive due to tariffs, supply constraints, and corporate opportunism.
    Wall Street, long the conductor of an increasingly dissonant economic orchestra, now faces a moment of silence. The music has not merely softened; it has stopped. The dance has ended. And those still moving to the rhythm of past delusions will soon find themselves alone on a floor that no longer exists. To proceed as if nothing has changed is economically suicidal.
    Oh, by the way, I did not even address the impact of AI…..

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