Overproduction.  Destruction of Commodities in Glutted Market. 

Well here we go again.  The farmers are again being paid to dump the food, wasting millions of tonnes of Soybeans.  Trump is paying 12 billion dollars of state money to large farmers, for food that will be destroyed.

The  justification for this is that China only bought 2.7 million tonnes of soybeans this year, after promising 12 million, in a large purchase planned by Biden and his government.  Trump has alienated China so badly, with 45% tariffs the current number, they didn’t buy the beans this year.

The last time Trump was president the farmers regularly received tens of billions of dollars, and the dumping of soybeans was also practiced in the pandemic.

It is a prime example of overproduction; the soybeans are useful, they are good quality.  But due to social conditions, they cannot be sold, rather, the bourgeoisie is sort of paying for them to be dumped.  Apparently flooding the market with cheap soybeans is also not possible.

They have about 2 weeks to purchase the beans, before they get dumped.  It seems physically impossible to move the about 10 million metric tonnes to China they were expected to purchase.  In an event of overproduction, inability to plan ahead for this calamity, the direct cause Trump’s tariffs, food otherwise consumable is all a loss.

We still to this day have famine, often in war torn countries.  Gaza is hungry, but the beans are unsaleable.  Clearly overproduction is a social problem, not a physical one.  It is occurring due to the style of government; the capitalist one.  

At this point it looks like the bourgeois will not even be buying the beans, rather just issuing checks to big farmers.  Checks were issued last time based on acreage, the more acres, the more welfare.  

“The highest per-acre payments will be paid to rice farmers, who could receive $132.89 an acre; cotton farmers, at $117.35 an acre; and oat farmers, at $81.75 an acre. Meanwhile, farmers are eligible for a payment of $44.36 per corn acre, $30.88 per soybean acre and $39.35 per wheat acre. The payments are calculated using 2025 planted acres, cost-of-production data, and market conditions, USDA said.”

Reuters 12 31 2025

This has yet to change.  Small farmers will be selling their farms, when their crop is unsaleable due to overproduction.  This will concentrate ownership of land further in the hands of the large landowners, who are all Republican bourgeoisie.

The 12 billion dollars comes from part of the surplus value sectioned off for taxes.  It is created in the labour process; wage labor is what is paying for this 12 billion dollars.  But to the capitalist this money is his property,as it was a deduction from his surplus value, gained through his control of the means of production, in this case the land. 

It is a crisis of overproduction, due to a glutted market for soybeans.  The only thing different this time is Trump is the cause of the crisis, as he had to tariff China massively, mostly to protect non metric industries like automobile production,  which would have a tough time competing against Chinese EV’s. They cost half as much as a Detroit car, or a Muskmobile Tesla.  They are not selling them to workers, they are luxury cars.  Honda is selling a Chinese EV this year, the Prologue.  I was at the Honda dealer recently and asked about Honda EV’s. I was told about the Prologue. I asked if it was Chinese produced.  The answer from the dealer was yes.  

The bourgeoisie should have remembered the last time, in Trump‘s first term, when tariffs started with solar panels (30%) and washing machines (20%), then expanded under Section 301 to hit steel, aluminum, and eventually a broad range of Chinese products with 25% tariffs.  That time they bought the soybeans elsewhere too.  The beans were probably dumped the first time Trump pulled a stunt like tariffing China.  The farm subsidies of tens of billions also got flowing under Trump in his first term.

It should be obvious there is no gain for the worker here.  It is not like Trump is even paying for land, as in a purchase, nationalization of land with a price tag.  Instead the 12 billion dollars will go to mostly large landowners, who will use it to pay wages, cementing their control over the labor process on land itself.  He just doles it out, and it is the large landowners who pull Trump’s puppet strings.  

Not even a year into Trump’s presidency there is already an economic crisis, this time a glutted market for soybeans resulting in millions of tonnes of food being destroyed.  Overproduction occurred, and now big pockets are required to keep the landowners happy.  They all know Trump represents the gravy train, and regardless of how bad decisions regarding economics go, they are insured through him if their crops fail.  They even went along with the tariffs, at least until Chinese tariffs in line with Trump’s made American soybeans unsaleable.  Will they keep supporting him if it means economic failure for their crop?

How many more failed years of crops will there be until there is nationalized land?  Clearly the USDA planning is not working.  It failed in Trump’s first term, when he pulled the same thing, big tariffs on China, resulting in counter tariffs, and overproduction. A more rational planning process, especially regarding the effects of large tariffs on markets, was required.  Instead we have failure, another lost year, with Trump to blame for the fiasco.  

Nicholas Jay Boyes

Milwaukee Wisconsin

American Democratic Republic

12 9 2025

edit 1 9 2025

Trump Raises Tariffs on Northern Neighbor Again.  10 25 2025

Donald Trump has raised tariffs on Canada again, a whole 10%.  He also suspended communication with Mark Carney, deciding to skip a meeting planned with him.   This was due to Doug Ford, Ontario premier, who ran this advertisement  during the ballgame:

It is rather humorous, a full throated rejection of the very thing Trump has made himself famous the world over for, taxes on imports, tariffs.  In Reagan’s own words we see a leader who was a free trader, who predicted a crisis would occur if tariffs were used in dealing with a close trading partner, in this case, Japan.

It is unknown if he went ahead with tariffs.  But given his feelings about it, it looks unlikely.  As Reagan noted in the speech, tariffs take center stage. (see above),  

“ What eventually occurs, first, homegrown industries start relying on government protection in the form of high tariffs,  they stop competing, and stop making the innovative management and technological changes they need to succeed in world markets.  And then, while all of this is going on, something worse occurs.  High tariffs inevitably lead to retaliation by foreign countries and the triggering of fierce trade wars.  The result is more and more tariffs, higher and higher trade barriers, and less and less competition. So soon, because of the prices made artificially high by tariffs, and subsidised inefficiency and poor management, people stop buying. Then the worst happens, markets shrink and collapse, business and industries shut down,  and millions of people lose their jobs. The memories of this occurring back  in the 30’s made me determined when I came to Washington to spare the American people the protectionist legislation that destroys prosperity.”

Ronald Reagan, ex president, at camp davis april 25, 1987 (see above)

A recording of what Reuters has called pieces of this thread was played in a 30 second advertisement during the ballgame in Canada, resulting in a 10 percent additional tariff on Canadian goods.  Some Canadian commodities will be spared if they are in a free trade agreement.  

Canada already got it by 50% tariffs on steel and aluminum, this brings the tax to 60%. 

People in glass houses shouldn’t throw stones. 

““The advertisement aired Friday during the broadcast for Game 1 of Major League Baseball’s World Series, in which the Toronto Blue Jays are facing off against the Los Angeles Dodgers.

“Their Advertisement was to be taken down, IMMEDIATELY, but they let it run last night during the World Series, knowing that it was a FRAUD,” Trump posted.

“Because of their serious misrepresentation of the facts, and hostile act, I am increasing the Tariff on Canada by 10% over and above what they are paying now,” he wrote.”

Reuters 10 25 2025 

Trump’s neighbors all love him.  Cuba, back under embargo Trump restored in his first presidency, are no doubt Trump supporters. America’s nearest neighbor in the north, Canada, was also propositioned by Trump to be a “51st  state”; they now face Trump’s ire as they are sovereign.  Mexico now is expected to call the gulf there the “Gulf of America”, instead of the Gulf of Mexico.  Most of the west was once called Mexico, until 1846 when it was occupied by the American army.  Is it a land claim?

His own party is divided; but there are still free traders in the bourgeoisie, although they seem to be remaining quiet.  This advert risks awakening them, resulting in Trump’s latest taxes on imports.

Trump is also placing large tariffs on Russian oil, in an attempt to fight the war there against Ukraine.  He is supplying satellite communication with Starlink to Zelinsky’s army there; they use it to target Russian oil production with American guided missiles.

About 4 million people nationwide came together to denounce Trump on the 18th of October, 2025. It was the second “No Kings” demonstration;  it took place in many cities, as well as New York, Chicago and LA.  There was no violence, they shut down downtown for hours. 

It is this type of activity and the response to it that could determine  what Trump is thought of.  Canada has yet to retaliate, but when it comes Carney will be tested.  Retaliatory tariffs seem to be all that Trump understands. 

But if enough people would show up for the demonstrations, Trump could be brought under control.  Right now the bourgeoisie  won their first elections for president after 20 years, they also took Congress.  As usual, they are having a revolution. 

But 4 million showed how many really feel about the protectionist bourgeois, who know non metric industry only sells in America.  Huge tariffs on Chinese electric vehicles is keeping  GM, Ford and Stellantis alive. The tariffs allow for American exports to be priced higher than they would be sold without tariffs. Detroit has yet to go metric, Trump has gone as far as suggesting gasoline should not be abandoned as climate change is a farce.  

An isolationist America, with protectionist economic structures to prop up non metric industries, which have yet to even publicly announce an attempt to go metric, in Detroit and DC.. An electric vehicle is out of reach for most, yet in China EV’s cost about $20,.000 US.  Thank you Donald for placing fetters on the means of production, keeping America non metric for another 4 years.

The solar panels for the roof fall the same way, it is too expensive due to tariffs to invest in them, as they are also made in China. 

It makes you wonder if someday Trumpers will build a wall at the Northern border.  Like the Mexico one, only also to keep American workers from defecting.  Detroit is basically there already.  Will Don “Build That Wall”? 

Nicholas Jay Boyes

Milwaukee Wisconsin

American Democratic Republic

10 25 2025 

edit 1 6 2026

Interest Rates.  Central Bank. Taxes and Fraud.

What looked an awful lot like Donald Trump wishing he could make the stock market numbers rise by tampering with the central bank,  lowering the cost of money to a percentage or less, we receive the employment data from the government.

Google points out: “in August 2025, U.S. employment growth slowed significantly, with nonfarm payrolls adding only 22,000 jobs.”

Employment data july 2025

More from Google:

“Job growth in May and June was drastically weaker than initially reported, with Bureau of Labor Statistics (BLS) data showing May’s gain revised from 144,000 to 19,000 jobs and June’s from 147,000 to 14,000 jobs. These downward revisions, totaling a 258,000 job difference, reflect a significantly weaker labor market than previously understood, with job gains falling to their lowest points since December 2020.  

Google search May and June job growth

When the latter was released, the downward revisions, Trump fired the Bureau of Labor Statistics leader Erika McEntarfer.  He apparently felt the numbers were wrong, that unemployment was not growing under his bourgeois rule. At the same time he was pressuring Jerome Powell, the Central Bank leader to resign, and cut the interest rate.

If there was no employment problem, why would Trump cut interest rates, except to buoy the stock market?  If he knew the number of workers employed was hardly rising fast enough to stop greater unemployment, why fire Erika McEntarfer.?  

Jerome Powell will probably now raise rates, given August’s poor showing in job creation.  Which is what Trump originally wanted.  The only differences now we get to see some real numbers, the kind that indicate interest rates have to fall, due to the prospect of a coming recession.

With the reserve army of unemployed workers growing, and lowering interest rates a way to make the markets keep rising, regardless of the real health of the economic system, it begins to look like Trump’s first term, when the  federal funds rate was about 1%.  

The market responded to the massive influx of state money positively, at least as far as the numbers went.  Everything on the exterior looked fine, but the milk was being dumped, and the price supported at $2.19 a gallon.  Clearly there was a crisis.

If Powell was really concerned about inflation, he would not lower the rate of interest.  Inflation is already here, any proletariat can tell you prices at the store are growing higher.  Automobiles are getting more costly, tariffs are stopping Chinese autos from competing with non metric American large engine petroleum vehicles.  The tariffs are causing inflation, the price of commodities is rising.

What has been rather humorous is Trump’s efforts to remove Central Bank employees he dislikes.

“The U.S. Justice Department has launched a criminal mortgage fraud probe into Federal Reserve Governor Lisa Cook and has issued grand jury subpoenas out of both Georgia and Michigan, according to documents seen by Reuters and a source familiar with the matter.

The investigation, which followed a criminal referral from Federal Housing Finance Agency Director Bill Pulte…”

“Pulte, who was appointed by Trump, has accused Cook of committing fraud by listing more than one property as a primary residence when she applied for mortgages, potentially to secure lower interest rates. Cook owns properties in Michigan, Georgia and Massachusetts.

Trump terminated Cook over Pulte’s allegations, prompting her to file a lawsuit challenging his effort to oust her.

Reuters https://www.reuters.com/legal/government/us-justice-department-opens-criminal-mortgage-fraud-probe-into-fed-governor-cook-2025-09-04/

Then we find out:

“Close relatives of the federal official who has accused a Federal Reserve governor of improperly claiming primary residence on two properties have declared the same status on two homes in two different states, public records show.


“Local tax officials in both states told Reuters that claiming more than one home as a primary residence isn’t generally allowed in their jurisdictions and could be punishable by fines or back taxes. After Reuters contacted tax officials in Bloomfield Township, Michigan, to inquire about the dual claims, Darrin Kraatz, director of assessing, on Thursday said the township “as of today” would revoke the exemption on the Pultes’ residence there.”

“The claim of more than one property as a primary residence has been the basis for Bill Pulte’s accusations against Lisa Cook, the Federal Reserve governor Trump fired as a result and who has since filed suit against the president to fight the dismissal. Pulte referred the matter to the attorney general, prompting a probe of Cook by the Justice Department.”

Reuters

Clearly there is trouble in the Central Bank, and it looks like they are all spending a good deal of time and money to evade paying taxes.  

“The salary for the Chair of the Federal Reserve is set by the U.S. Congress. In 2025, the annual salary for the Fed Chair is $250,600. The yearly salary of the other Fed Governors is $225,700.”

Google Search: Central Bank governors salary

Apparently they felt they were not receiving enough money, so did tax evasion?  A simple scam too, declaring two primary residences, which is illegal.  First we find Lisa Cook guilty of tax evasion, then Bill Pulte, the very official who just accused Cook of fraud.

All this to lower interest rates.  What a circus.

WIth inflation returning due to tariffs, it seems reckless to lower rates.  The employment rates falling could be seen as a recession coming, which could be perhaps avoided with cheaper money.  But it is a bail out when rates are a percent or less. It may be good for the stock market numbers, but will not lower the inflation problem caused by Trump.  

If he lowered the tariffs, the tax on imports, prices would fall.  Inflation is higher prices.  The tax is due on the importer of foreign goods, who is subject to paying the tariff once the commodity reaches America.  If he tacks it on to his price, the next seller of the commodities also tacks on the price increase, and the next one too etc. until eventually it is the consumer who pays the tariffs. 

It is only another form of surplus value, Trump’s money raised from tariffs, it is taxes on the consumers in America, mostly those who ship at places like WalMart or Amazon who buy imported cheap commodities.  Trump is the tax man.  He taxes the workers, with a zeal.  He said his favorite word was tariffs.  He meant it too.  

The economy is slowing, due to Trump’s governing.  More unemployed workers,  the prospect of bailouts, massive debts created by his Big Beautiful Bill, payable through taxes.  

Nicholas Jay Boyes

Milwaukee Wisconsin

American Democratic Republic 

9 7 2025

Jerome Powell’s Conundrum.  Attempts to Create Surplus Value with the State. 

It’s always interesting to try to figure out what  the central bank is going to do next.   Previously, under Joe Biden, they raised rates as inflation was rising.  They thought it would lower demand, which was supposedly why the prices of  commodities were above their value.

Well here we go with Jerome Powell again, who is under pressure from Donald Trump to lower interest rates.  Trump has raised tariffs to most of the rest of the world, and the prices of products at the store are already starting to rise.

When the price of commodities rises, it is referred to as inflation.  Yet Powell is under great pressure to lower rates, which is the exact opposite of what he did last time inflation was an issue.

Given the weak jobs report that came out last week, and the lowering of gross domestic product under Trump, signs point to efforts to bail out the companies again with low interest rates.  

Trump wants the state to subsidize capitalist industry, by having a low or no interest rate at all.  During the pandemic the rates were a percent or so.  We remember when they were dumping the milk, yet it was record after record for the stock market  numbers.

Why not, it worked for Don then?  This time when Don got jobs numbers from the Bureau of Labor Statistics showing poor job growth,  he fired the leader of the group, and installed  a loyalist who helped write the Heritage Foundation’s project 2025.  Now it is no longer providing monthly job statistics.  Soon it may be like trying to get real numbers out of the press about profit, surplus value, the expenditures on labor as compared to the whole investment including the constant capital.  It may become even more of a free masonry regarding the average rate of profit.

Which leaves one wondering just what these big investors go on when they invest in a company?

Perhaps they are privy to more than the Washington Post or Reuters.  But without government data, how can they predict what the market is doing, especially the bond market? All we know is the BLS data Don banned is showing the economy is slowing down.  That makes a rate cut likely.

But that is the exact  opposite of what Don was trying to prove.  He wanted the jobs numbers to reflect strength, which they did not.  The clever bail out of free credit to bourgeois owned industry seems to be in order, the rates may fall.

Again we have to question Powell, whose raising of the interest rate under Biden occurred. We were told to keep inflation at 2% of GDP the interest rate, the cost of money, had to rise.  Now we see inflation rising again, but this time in conjunction with the economy shedding jobs.  What will he do?

He could  keep the rates where they are, and let the next Central Bank chairman who will be appointed by Trump lower rates.   He has to wait until May when Trump gets to appoint whoever he likes the post of Chairman.

Use of the state to prop up failing industry is common in capitalist Germany.  In their case, the state buys stocks in the distressed companies, with no votes in decision making.  They sell the shares after the company can again make  a profit without the state assistance.  It is an example of why nationalized companies do not always represent something radical, like socialism. The key here is the government pays for the shares, they do not simply appropriate them.

Trump’s bailout is coming; it will be here by May. Farm subsidies are already here, at 12 billion dollars for large farms. Among Trump’s ideas about the state one might find unusual is his tariffs.  When you tack on a money amount to a sale, it just gets passed on to the next seller or buyer; it changes nothing to the buyer as he simply passes on the additional sum to the next seller.  It is the consumer who pays ultimately for the tacked on cost, the tariff.  That is why prices are rising at the store, the consumer is paying for the tariffs.  

But here comes Trump with the tariff money he gained, which he considers surplus value.  It’s the value of the product, which he obtained through taxing imports.  He touts this as progress, a sign of his strength he can raise taxes at his discretion.  

But in the end the taxes are paid for by the consumer, even if the buyer or seller simply passes on the cost to the next guy, with no real effect on the merchant.

Another clever use of the state, this time to bring in additional taxes by taxing imports.  Trump has his billions from tariffs.  But inflation is the result.  Which puts Powell in an uncomfortable position; will he bend to a bailout, even though inflation  is rising?  Again, it is the exact opposite to what he put Biden through when he raised the interest rate due to inflation.

These bourgeois slight of hand games change nothing about the fact the taxes, profit , etc. all represent surplus value.  The tariffs and taxes now have in common with profit; it is not a transparent process; with the statistics people compromised,  no one will have any way of knowing the real numbers, perhaps until it’s too late. 

 Prepare for Trump’s big bailout, anything to keep those stock market numbers rising.  

Nicholas Jay  Boyes

Milwaukee Wisconsin

American Democratic Republic

8 15 2025

I edited this 9:23 2025. Powell’s rates fell a quarter percentage.point yesterday.

Trump’s Economic Woes

The drama of Donald Trump’s budget continues.  The Senate cannot rectify the cost of the bill, which will add about 4 trillion dollars to the national debt.  They are trying to use a new method to calculate what the bill actually costs.  The Republican bourgeoisie has lowered its estimates of cost 90% less than what it actually is going to cost, if calculated in the traditional manner.

By what I guess one could call clever:  

“If Congress doesn’t act, most of Trump’s signature 2017 tax cuts will expire this year. Extending those cuts through 2034 accounts for the vast majority of the bill’s estimated impact on the national debt. But the Senate’s method of cost-counting compares the cost of extending the tax cuts against the government’s finances with the cuts in place, not against the government’s finances if the cuts expire. “

Washington Post 6 28 2025

So Trump’s “tax cuts” are what is making the 4 trillion dollar debt that is going to have to be paid by younger generations, risking default.  By not including the extension of the tax cuts, which is probably the most important part of the bill, to the price of the bill, its cost is lowered 90%.

Which perhaps pleases the following of the Republicans who like to think they are masters of economics.  Without the legislation,  the tax cuts expire.  By reasoning the tax cuts would not expire,  the Senate simply adds on the cost of the bill without the tax cuts.

Would you feel comfortable about this group doing your bookkeeping?  It overlooks a massive expenditure that will likely never be paid off.  It defers payment to another generation, long past  Trump’s ripe youth of 78 years old.

But what the heck? They always said someone would come to their assistance with nuclear waste.  But it just keeps accumulating, a gift from the 20th century when long term effects of industry were less important than creating surplus value.

The government’s credit rating has already been degraded due to Trump. Moody’s was the last rating agency to downgrade the government’s credit rating.  Yet Trump thinks he can remove the chairman of the Central Bank, and have lower interest rates.

The government’s credit rating falling means the bonds they are buying are riskier.  This if anything would raise interest rates, as money is harder to get;  the risk of default is rising.

In the end where this seems to be going is the currency is currently being devalued, which makes the debt lower as money is worth less.  It also seems to make the stock market value rise.  

If this continues wages will have to rise.  If the value of money is less, workers have to undergo privations. This can only be maintained for so long without civil unrest, strikes,  etc. resulting when workers on multimillion dollar machines are being paid minimum wages.

The whole thing looks increasingly like a powderkeg, and the Republican bourgeoisie are totally in control of the capitalist state.  The debt was contracted to pay for the wars in Iraq and Afghanistan.  At some point it became clear Afghanistan’s natural resources, which was probably about all the country had for assets, could not pay the trillions of dollars borrowed.  

This culminated in the defeat of the bourgeois state, and the subsequent debt.  The whole adventure has to be written off as a failure, no profit is flowing in due to Afghanistan.  Rather the opposite, with the weapons designed to be used there no good for fighting in Ukraine.   The bomber planes may work in the developing world, but in Europe they seem to be a failure.  They even gave Ukraine long range missiles, to no avail.  

At some point the hard reality is going to have to sink in, probably when Moody’s cuts the government’s credit further.  Then interest rates will have to rise again, just like now.

The downgrade of the government’s credit also came with the tariffs Trump is trying to place on Canada.  He has gone so far as to suggest Canada becoming part of America.

After the overwhelming success of Afghanistan,  how could Trump go wrong?  I suppose Trump thinks the Canadians will just give in.

We have seen this road before.  Iraq looked like a cakewalk, two interventions later the only profit to be made is selling the once nationalized oil under Iraq.  They have yet to explain why they felt the need to expropriate the assets of the people of Iraq, who were represented by the Baath Socialist Party, the party that had nationalized the oil.  

It is morally offensive that a sovereign country would have to endure this type of harassment.  Canada is the second largest trading nation to America.  They risk trade coming to a halt rather unceremoniously,  if Trump attacked our neighbor to the north.  I suppose then he thinks interest will fall.  

Trump’s bill passed, and the tax cuts, at some point down the road, crisis is looming.   Accounting tricks will not help them then, default or partial default will be the only answer.  It already looks ridiculous to raise the interest rate, the amount of money the government buys its debts for.   The bill could be more than 4 trillion if Trump has a  new Fed chairman just  keeps buying debt.  

Nicholas Jay Boyes

Milwaukee Wisconsin

American Democratic Republic

6 28 2025

When Fantasy Meets With Reality

With both houses of Congress, and the president all being in the same political party, the Republicans,  it would seem to be now that the bold moves would take place. Given the Republican bourgeoisie always preaches less government, and less taxes, just now has this unfolded?

Donald Trump and Elon Musk, the richest man in the world, just attempted to gut the state. They removed thousands of state workers and officials, in what was an attempt to pay off the national debt, which stands at 34.2 trillion dollars. It costs about a trillion dollars a year in interest.  This money comes from taxes, through the more mysterious bond borrowing by the Central Bank.  They buy money, to pay off expenses of the state, and the interest is paid for by taxes.

The Central Bank are indebting the state, and the bourgeois speculate on the ability of the state to be able to pay off its debts.

Musk’s effort seemed bold, and he promised to cut 2 trillion dollars from the state.   

But then, things started to unfold that contradicted the Republican message we were so used to hearing about; how fat the state was, and how the assets of the state could be made private property.  Musk started issuing to state offices and state industry ultimatums regarding their employment.  

Musk really believed the Republican bourgeoisie, and attempted to gut the state.   Things started to unravel though, and 2 trillion dollars became 1 trillion dollars.  State workers really were losing their jobs, but it was becoming clear the state employees were there to help  the bourgeois run industry that was needed but could not create a profit.  The state industry could not be sold off to private businessmen,  it turned out the state could not shrink in size much smaller than it already was, without causing civil unrest.

2 trillion went to 1 trillion, and at the end of Musk’s official work to make the state smaller, he saved about 150 billion dollars a year.  This was about a half a percentage point of the expenditures of the state for 2024.  This is about one sixth the size of the interest payments the bonds issued this year are paying.

Then Trump’s efforts at legislation, his budget “big Beautiful Bill” he was trying to pass,  would indebt the state  2.4 trillion to 5 trillion dollars in 5 years.  

So lowering taxes was fiction. 

The massive tariffs also followed Republican leadership, taxes on imports.  It’s simple; the importer buys a foreign product.  When it arrives at the dock,  the importer receives his receipt, with the tax on the purchase displayed on the bottom.  In this case it is the tariff that is the tax, paid for by the importer.  It is like Sales Tax, paid by the purchaser of the product, in this case the importer.  

So much for lowering taxes.  As far as the consumer goes, for instance WalMart has said prices there will be rising due to tariffs.  Trump has said WalMart should make less profit, simply “eating the cost of the tariffs”.  But stores like WalMart, where the proletariat shops, already were stretched to make a profit, having to compete with other stores like online giant Amazon.  Amazon also has said prices are rising, due to tariffs.  

The taxes from Trump on imports, whose Republicans preached about the “tax and spend” culture of Washington constantly to get elected, showed the latter was also fiction.  At best they passed on the taxes to the next generation, by which time the next president will have to pay off the debt, or default.

Moody’s credit ratings are used to assess the creditworthiness of debt issuers, providing investors with insights into the likelihood of default and financial loss.  The repayment of obligations is what is key here,  and on May 16, 2025,  Moody’s Ratings (Moody’s) downgraded the Government of United States of America’s long-term issuer and senior unsecured ratings to Aa1 from Aaa and changed the outlook to stable from negative.

This was the last credit ratings organization to downgrade the government’s credit rating, the others already concluded default by the bourgeoisie on its debts is a risk worthy of a downgrade.

Yet Trump kept suggesting the taxes he created on imports would help pay off the debts.   But it was a drop in the bucket compared to the 32 trillion dollars owed by the government for its debts.

At this point Musk began sensing he had been made on ass of,  and left the government.  He would have a falling out with the president he paid 260 million dollars of his money to elect.  It started getting ugly on social media, with Musk going so far as to suggest Trump should be impeached.

Trump then said Musk had a drug problem, which would explain why he was so easily taken when he heard the state was too fat, and its assets could be privatised. 

I guess the only real question is why there are some who believe the economy has been helped by Trump and his Republicans.  He threatened 150% taxes on Chinese imports. He backed off, but it remains about 50% on imports from China.

Trump is the taxman.  And he is this with complete control of Congress, Senate and House.  Perhaps the only question is is this not exactly what happens when the bourgeoisie has total control the state?

Nicholas Jay Boyes

MIlwaukee Wisconsin

American Democratic Republic

9 17 2025

Taxes on Imports.  Attempts to Limit China’s Exports by Raising Taxes here on Commodities. 

Taxes on Imports.  Attempts to Limit China’s Exports by Raising Taxes here on Commodities.  11 29 2024

The cockeyed idea that you can control production from another country of commodities in demand worldwide by raising taxes on the import of these commodities is running into difficulties.  The idea that the American market can pressure China to produce less Electric Vehicles (EV’s)  and Solar Panels, by taxing imports; tariffs, seems to be an argument that without Americans to consume China’s production, they will be unable to sell their EV’s and solar panels. What this view lacks is the recognition that the production of high quality finished goods, which will easily find a market elsewhere, are making the taxes only bite the consumers, primarily American workers, who consume cheap Chinese products at Dollar Stores, WalMart, etc.   

The latest complaint is capitalist production cannot compete with China’s socialist system.

“China is too large to export its way to rapid growth and would benefit by reducing excess industrial capacity which is pressuring other economies, Yellen said in remarks to an audience of about 40 representatives of the American Chamber of Commerce in Guangzhou.”

“”Overcapacity isn’t a new problem, but it has intensified, and we’re seeing emerging risks in new sectors,” Yellen said in China’s southern export hub of Guangzhou, where she met with Vice Premier He Lifeng and Guangdong Province Governor Wang Weizhong.”

“Yellen and other Biden administration officials are growing increasingly concerned about China’s overproduction of electric vehicles, solar panels, semiconductors and other goods that are flooding into global markets in the face of a demand slump in China’s domestic market.”

Reuters 4 5 2024

“Chinese state media have pushed back against Yellen’s excess capacity message, saying it was an example of a double standard.”

“”While it is just basic economics that surplus products naturally seek out markets elsewhere once domestic demand is met, and Western nations have been doing that for centuries, when it comes to China, it becomes an ‘overcapacity problem’ threatening the world,” the China Daily said.” 

Ibid. Reuters

They really look silly telling China to produce less because the market in America cannot compete, and they are starting to refuse to buy the commodities to hurt China.  It’s like cutting off your nose to spite your face.   They are going to deliberately cause inflation with taxes on imports, taxes that will be paid by the consumer, often of products like solar panels for rooftops that have been acknowledged by them as effective to stop climate change.

What logic is it to not buy a cheap solar panel, just because the seller has decided to sell it below its value, the amount of labour time required to produce it?  Why should the buyer care? 

Creating a surplus is the basic rule of all capitalist production.  Suggesting China should not export so many products is a ridiculous request, given this is the overriding goal of capitalist production, to create surplus value.  Do as I say, not as I do.   

“Nov 29 (Reuters) – U.S. trade officials announced on Friday a new round of tariffs on solar panel imports from four Southeast Asian nations after American manufacturers complained that companies there are flooding the market with unfairly cheap goods.”

Article continues…

“According to a preliminary decision posted on the U.S. Commerce Department’s website on Friday, the agency calculated dumping duties of between 21.31% and 271.2%, depending on the company, on solar cells from Cambodia, Malaysia, Thailand and Vietnam.”

“Most solar panels installed in the United States are made overseas, and some 80% of imports come from the four nations targeted in the Commerce Department probe.”

“President-elect Donald Trump has called the Inflation Reduction Act too expensive, but also has said he plans to slap hefty tariffs on a range of sectors to protect American workers.”

Reuters 11 29 2024

Trump said his favorite word was “tariffs”, and now he is becoming president again.  What he really means is his favorite word is actually “taxes”, because that’s what tariffs are, a tax on imports.  He already is trying to figure out what to do with the money from the taxes on imports, with lofty goals of being able to use it for his state.

Apparently there  is some contention about if the consumer will be paying these taxes.  They will, unless they purchase American made products, the old non metric, fossil fuel dependent production.   

Solar panels are becoming more out of reach to the worker daily.  China produces 80% of the panels, it is unlikely they will take a loss to sell their panels for less to compensate for the tariffs.  You will see inflation on panels, due to taxes levied by the bourgeoisie, who are not really committed to stopping climate change. 

It would be nice if solar panels were produced here, but instead the focus seems to still be on pumping as much fossil fuels as possible out of the ground, in the least amount of time. China seems to be rapidly becoming superior to American production of a key component of any renewable energy plans, the solar panel.   

China is already talking about putting their own tariffs on large gasoline powered engines, for cars and trucks.  This could get interesting.  How about a tax on non metric products? Imagine if they had to go metric to access foreign markets.

In all this taxing of imports it is the consumer who is going to pay.  This form of taxation will also bite the bourgeoisie, as Sam Walton owns WalMart, for instance, and will have to raise prices on Chinese products popular there due to tariffs.  And if those non metric gasoline large motor powered cars and trucks get tariffed, it could cause an economic crisis.

Most large scale production uses Chinese produced raw materials, for welding, for instance.  This is s tax on their own production; without the cheap welding supplies the commodities rise in value.  Will the bourgeois willingly make less profit to offset the taxes?   

Nicholas Jay B\oyes

Milwaukee Wisconsin 

American Democratic Republic

Technological Advancement and Material Conditions

Technological Advancement and Material  Conditions  

So what we seem to be seeing is what the new government is going to  be doing is to keep the old decaying industry functioning, regardless of its ecological impact.  The appointments Donald Trump has made are all involved with petroleum and fossil fuel production. Either that or they are inexperienced, and will take orders well.

What we can expect is, for instance, Milwaukee’s electrical generation will be remaining coal fired turbines, until Trump leaves office.  For a number of years Wisconsin Electric, the monopoly that sells natural gas and electricity to Southeastern WIsconsin, has talked about switching the Oak Creek power plant to gas. 

This now looks unlikely, regardless of the ecological effects of massive coal storage and burning.  Simply put, the Republican bourgeoisie will not have deep enough pockets to change the turbines to gas.

It also looks like gasoline powered large engines for autos, boats, etc. will be here to stay.  Trump has said he will tariff, or tax, Chinese electric vehicles (EV”S). The current government has already increased for this year 100% tariffs on electric vehicles, a 25% tariff on lithium-ion EV batteries and a 50% tariff on photovoltaic solar cells produced in China.

And this is not enough for Trump, he wants to increase taxes on imports, tariffs, even higher.

China has shown it can produce cheap quality EV’s that are competitive in the world market. They pollute the ecology far less than Detroit’s SUV and pickup trucks that use large gasoline powered engines.  The tax on imports of Chinese EV’s are designed to make Detroit’s products more competitive in the domestic market. 

Who wouldn’t want a cheap quality EV?  Why would a machine that can reduce the ecological impact of climate change not be welcomed?

China now produces 80% of the photovoltaic cells for solar energy.  At some point China decided to move forward industrially, went metric, and shifted to developing the latest technology.  All our bourgeoisie can do is tax imports from China to keep Americans buying Detroit’s gasoline powered large engine vehicles, and consuming fossil fuels for power generation. 

We expect it from Trump, but here is Biden doing it too.  These forms of protectionism are only going to get worse, and you can really see how non metric industry is simply not competitive.  China is still considered a third world country by the United Nations, and American can’t compete.  The statements to expect are something to the effect of “China, India and Russia are polluting the ecology, why should we be held to a different standard?”

Which reduces us to the standards of a declining capitalist model, like Russia, without recycling; or India and China, that are in the developing world. 

How far we have come.  The days of glory are coming to an end; technological progress is changing society, and Detroit is still not metric.  The speed limit signs, the gas pumps, the size of containers at the store, are all not yet metric. 

And do you really expect Trump to do a metric conversion?  He doesn’t even believe climate change is real.  “Make America Great Again” includes inches, gallons, and feet.

Another 4 years without a metric conversion.  And this is supposed to be someone who understands basic economics.  

What this is going to do is fetter the productive forces even worse than they are currently. It will further isolate the workers and industry from the rest of the world.  Who is going to buy a large non metric gasoline powered motor pickup truck outside the domestic market?

Then there is the social conditions; Elon Musk, who invested more than 250 million dollars into getting Trump elected, is now coming to power.  His industry he owns is called Tesla, and produces luxury automobiles.  It is not part of regular commodity production, it is what the surplus value is spent on.  It does not produce a profit, rather it consumes profit.  A worker cannot afford Musk’s cars, they are for the bourgeoisie.  It is what the bourgeois spend their profits on, rather than an affordable car a  worker would consume. 

This and government contracts are how Musk has gained his wealth. Trump will steer more government contracts for space,. to Musk’s monopoly, complete with the knowledge of engineers who created the industry for NASA previously..

These are all part of what to expect around here for the next 4 years.  Buying a Detroit gasoline powered truck, not being able to afford a solar panel for the house, using gas and electricity instead of renewable energy….  The speed limit staying 70 miles per hour on the highway; purchasing gallons of gasoline for the car, etc.  Prepare yourself for it, it is coming.

Nicholas Jay Boyes

Milwaukee Wisconsin

American Democratic Republic