There are news events which fly under the radar, and then there a days where the major news story is so obvious it should terrify a rational person or investor.
It started in the wee hours of this morning when the President basically admitted that the negotiations with China were going nowhere with this posting on Truth Social:
Unfortunately for everyone grounded in reality, he followed it up later after the ADP report came out:
Since volume is so thin in the markets today the trade war doesn’t really seem to matter.
However, based on the testimony of Commerce Secretary Howard Lutnick, it’s obvious that we’re either surrendering or turning into an isolationist nation again.
KENNEDY: If Vietnam came to you and said, 'You win. We're gonna remove all tariffs and all trade barriers. Would the US please do the same?" Would you accept that deal?
— Aaron Rupar (@atrupar) June 4, 2025
LUTNICK: Absolutely not. That would be the silliest thing we could do
KENNEDY: What's the purpose of… pic.twitter.com/oR7B84MhZq
Senator Kennedy didn’t realize it, but he just put the nail in the coffin for the “trade deal” theme that most of the world has already seen.
If the United States is not serious about reciprocal tariffs being reduced to zero or a more tolerable level for both parties, then what reason does another nation have to negotiate with the United States at all?
Essentially it is a surrender notice that we will continue this insane trade war, global economy be damned. Perhaps Secretary Lutnick might want to reflect on what those nations with trade surpluses do with their excess dollars however from the current trade situation.
Because Secretary Bessent might want and will have to sell more US government bonds to anyone who will take them the way the drunken GOPers on the hill are spending now and into the future.
