Summary

While Trump’s new tariffs may cause short-term economic challenges, the real drivers of recession are rooted in artificial credit expansion and the actions of central banks, rather than tariffs themselves.

Economic Causes and Consequences

Artificial credit expansion by the Federal Reserve, not tariffs, is the primary cause of recessions, creating malinvestment and warping the production structure beyond sustainable levels.

The Federal Reserve, acting as a banking cartel, has been responsible for every recession in American history by transferring trillions from everyday Americans to wealthy financial institutions and government officials.

Historical Context

The Great Depression was caused by extensive credit expansion during the 1920s, with the 1929 crash acting as a trigger and subsequent interventionist policies exacerbating the situation.

The 2008 Great Recession resulted from credit expansion in the 1990s and early 2000s, triggered by the collapse of the subprime housing bubble.

Future Outlook

The next recession will likely be caused by aggressive credit expansion following the 2008 recession and especially during the COVID-19 pandemic, requiring public understanding and discipline to address the root cause.