My worst predictions for the damage that would come from the Trump Tariffs are starting to manifest rapidly and broadly in the data now. So, unless the Trump administration’s plan is to crash the dollar, as I wrote about in the last Deeper Dive, they should be praying for de-escalation with China, given the problems already materializing for the dollar and it related Treasuries.
This weekend, however, I’m going to review the many ways the economy, not so much stocks and bonds and the dollar, is breaking down because, while the tariffs have been off and on and largely postponed, the damage is already showing at ports and in data. So, let’s go through the stories of just this past week that I didn’t have time to dig into during the week as I focused on the more intense and dangerous Treasury issues and stock insanity.