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IIt didn’t take long for the Maga inner circle to fall out like a bunch of crackled hoods after a bank attack.
A photo, which was taken at a distance by a window of the White House, from Donald Trump, gesture at a slightly sheepish Elon Musk, emerged that literally shows the tension.
The public insults are becoming even less ambiguous between Musk and Trump’s trade adviser, Peter Navarro.
First, Musk Navarro’s PhD in Harvard economics has reduced (a perfectly genuine and more than reverent qualification). In return, Navarro struggled that Musk was just a ‘car meeting’, someone who compiled vehicle parts around the world?
Musk truly called Navarro “an idiot” and “dumber than a sack of bricks”, and later issued a faux apology: “It was so unfair to bricks.”
Which is amusing enough (unlike the ATKLIST -Slurp when Musk referred to “Peter Retarrdo” in a separate social media post). White House press secretary Karoline Leavitt has delayed the insults, saying that it is “two individuals who have many different views on trade and rates” and that “boys will be boys – and we will continue their public sparring.”
But why, apart from their natural tendency to act like spoiled adolescent frat sons, all the bad things?
The answer is the Trump tariffs that have already badly damaged Musk’s highly globalized Tesla business. After a sharp decline in its share price, the first partner’s net worth dropped below $ 300 billion this week. The volatility of the market can do the trade even damage on SpaceX, a more important part of his businessman and the vehicle, almost literally, through which Musk will bring about his ambition to make humanity an interplanetary species.
There is no reason to doubt that Musk thinks that Trump’s rates are deeply wrong on less selfish grounds, as indicated by putting him an old but persuasive cut by Milton Friedman using a pencil to expand the benefits of global free trade.
What we see is the kind of split that the loose Republican-Maga coalition can break, because that’s what it is. The issue is free trade towards protectionism, and it has beaten political parties before (including British conservatives in Edwardian times, and again in a way about Brexit). On the one hand, there is what Trump calls the Rinos, ‘Republicans in name’: the party business, but related to more dedicated conservatives, such as Ted Cruz and now, full-Maga upright, with Musk the most important.
Businessers, donors, divisions of the Republican groups in Congress and in the country stand on different sides in this argument – and it is heated.
As protectionism has raised its ominous head in the past, there are major economic arguments and interests at stake. Yet there is a reason why protectionism – and evil siblings isolationism and nativism – never lasts that long. It is not just because it leads to wars, sometimes rights; This is because trading means progress and the higher standard of living that people always demand. It is indeed the benefits of the unparalleled integration of the global economy that globalization is irreversible.
We now see, and powerful, how investors avoid US treasury effects because they fear the future health of the US economy and the dollar. In short, it means it is more expensive for the Trump administration to do its job and finance America.
It may not have been a deliberate act of sabotage, but it is no coincidence that one of the biggest buyers and holders of US bonds is China – about $ 750 billion, and if they download it, they could crash the dollar. It would not make much sense, because they would devalue their own savings. But they may have to stop as Trump’s 104 percent rates that they are exporting to the US, and they also have to collect cash.
A few days after vice president JD Vance made a characteristic mocking remark about “our money borrowed from Chinese smallholder farmers to buy the things that Chinese small farmers manufacture”. Beijing calls it ‘ignorant and disrespectful’, which it was – and also stupid, because China can’t be pushed around like Ukraine or Denmark. It has a claw.
Maybe it’s time for Trump’s Maga mates to cool their engines – and their mouths.
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