Soaring Costs Are Ironically Tariff-Proofing the Economy

Should we be concerned about the economy – much less the stock market – as President Trump heats up his tariff rhetoric?

Perhaps, tongue-in-cheek, we should first look at the data. Where are Americans spending their money these days – and how resilient is that spending in a world of higher tariffs?

The latest troubling trend shows that Americans are spending more on healthcare – often in the form of “insurance” that doesn’t insure against anything – than on necessities like food and housing:

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Americans now spend more on healthcare than on groceries.

U.S. healthcare continues to outpace overall inflation, thanks to high government involvement in mandates and subsidies.

We note – somewhat jokingly – that if these trends continue, healthcare spending will be the entire U.S. economy by about 2150.

Meanwhile, some forms of healthcare, such as cosmetic surgery, continue to rapidly-improve over time and costs decline.

But where the government lays its hand on the scale, all Americans are burdened with the costs of a government-run healthcare plan, while still having the appearance of a private, free-market plan.

~ Addison

50 major companies that will likely fail to survive Trump’s MAGA economy. Many have 5-star ratings. Most are “buys” per Wall Street. But they’re dead companies. Click here to see the full list.

P.S. What caused the madness of America’s healthcare system? The blame starts with FDR. During World War II, wage and price freezes and a labor shortage led to employers coming up with the idea of providing health insurance.

Today, your insurance is still tied to your job – but with the negatives of government plans and mandates that make it unwieldy. And it’s a problem that looks like it’ll get worse before – err, if – it gets better, as it’s not a centerpiece of President Trump’s Great Reset plan.

As always, your reader feedback is welcome: feedback@greyswanfraternity.com (We read all emails. Thanks in advance for your contribution.)

Should we be concerned about the economy – much less the stock market – as President Trump heats up his tariff rhetoric?

Perhaps, tongue-in-cheek, we should first look at the data. Where are Americans spending their money these days – and how resilient is that spending in a world of higher tariffs?

Turn Your Images On

Americans now spend more on healthcare than on groceries.

U.S. healthcare continues to outpace overall inflation, thanks to high government involvement in mandates and subsidies.

We note – somewhat jokingly – that if these trends continue, healthcare spending will be the entire U.S. economy by about 2150.

Meanwhile, some forms of healthcare, such as cosmetic surgery, continue to rapidly-improve over time and costs decline.

But where the government lays its hand on the scale, all Americans are burdened with the costs of a government-run healthcare plan, while still having the appearance of a private, free-market plan.

~ Addison

As always, your reader feedback is welcome: feedback@greyswanfraternity.com (We read all emails. Thanks in advance for your contribution.)

With the United States conducting what the Pentagon politely calls an “operation” against Iranian military infrastructure, markets have had every reason to be panicky. Instead, the past week delivered something subtler…

Gold has been consolidating after a powerful multiyear rally. Yet with America’s gold reserves equal to only about 3% of federal debt, the metal could still have significant upside ahead.

The Federal Reserve can print money, but it can’t print oil. As energy prices surge and supply disruptions loom, the central bank may find itself with limited tools to fight inflation driven by real-world shortages.

The plan to release 172 million barrels from the Strategic Petroleum Reserve would leave the U.S. with its smallest stockpile of emergency oil in more than four decades. And with tensions simmering globally, the shrinking reserve raises uncomfortable questions about how prepared the U.S. is for the next supply disruption…

Gold has been consolidating after a powerful multiyear rally. Yet with America’s gold reserves equal to only about 3% of federal debt, the metal could still have significant upside ahead.