Two US chip makers, Nvidia and Advanced Micro Devices, have made a deal with President Trump; for every authorized advanced AI chip they sell to China, the US government gets 15% of the revenue. Effectively nationalizing public corporations while opening previously prohibited sales. In 2024, Nvidia recorded nearly $61 billion in revenue – 13% came from China. Estimates suggest the additional revenue which Trump tax would generate is between $8 and $15 billion which would net the US Government $1.2 to $2.25 billion.
China has stated that the specific chips cited for sale to their manufacturers, were ‘not safe’ and are subject to security concerns. Jinping has advised to avoid their purchase, making Trump’s call a waste of time. Trump claims the chips he has authorized are obsolete and if Nvidia and AMD want to sell the more advanced chips Trump will raise the revenue sharing ante to 50%. I doubt he’ll get any takers.
Tariff receipts generated so far amount to $129 billion, an increase of 131% over last year. A fabulous amount at first glance, but to what end? Will the money go towards the annual deficit of $2+ Trillion? Or is Trump going to use it to build Gaza wherein the corporate hedge funds take ownership and Taxpayers are left with toes in sand on the beach? The Master of Flip-Flops.
One fellow on social media has claimed that despite Tariffs – prices remain unchanged. Therefore, tariffs are a resounding clean source of revenue for taxpayer benefit. But if the revenue is used to shore the continuance of deficit government spending, we are on the receiving end of more sand. The financial concept of over-spending appears allusive to lawyers and developers.
Tariffs, contrary to Social Media Maga’s, have increased prices on specific items including cars, manufacturing components, foods, homes, and alcohol. US auto makers rely on imported components including engines, electronics, tires, brakes, etc… made in Mexico, Japan, and China. There is really no such thing any longer of 100% US made cars. In fact, Americans will bear the brunt of some or all of these price increases as manufacturers look to spread their losses wherever possible.
While many manufacturers bought up whatever inventory they could before the tariffs took affect, food distributors were obviously limited. As a direct result of this additional inventory acquiring, wholesale data was used to elevate consumer outlook while the Producer Price Index was used to measure wholesale price increases. As inventories deplete and purchases are made with added tariffs attached, those increases will be passed on to the consumer. Driving further inflation.
The Federal Reserve’s Reaction To The Data: Initially, the CPI report came in cooler than expected, which gave the Fed an impetus to cut rates this September. However, given the latest PPI data, Powell said doubt reigned put that in doubt. The economics world states that “a rate cut would make it cheaper for businesses and consumers to borrow, thereby potentially further stoking inflation.” So, instead small and midsized businesses will continue to fail and fold given the tariffs make their shops unaffordable, and unable to compete. The fact that the government is doing the vast majority of the ‘borrowing’ to feed its Big Shop of Horrors budget shortfalls seems out of the equation.
Fiscal year 2025 ends September 30th.. The Federal Deficit stands at $(2.009) Trillion as of today by Debt Clock. Federal spending is $7.23 Trillion compared to full year FYE 2024 of $6.25 Trillion. The $2+ trillion differential requires the Treasury to print more money – making the dollar ever weaker. Pushing the overall National Debt closer to the $40 trillion mark and debt to GDP over 123%.
Trump has one more card trick up his sleeve, the opening of land grabs as he releases federally owned land for sale – with untapped resources attached. The $150-$200 Trillion valuation is a media spin unrelated to reality. Tapping ‘resources’ takes time, manpower, energy, money, equipment, and more time. They have no value until they have a finished product for sale. Not all of the land is salable. Not all of the land is usable for anything. Creating a thorough analytical approach to land valuation and royalties has yet to be accomplished. So for now we are at the mercy of journalists who have absolutely zero financial acumen.
Scott Bessent has made an unqualified statement based on estimates without calculations that the US ‘Might’ recover $300 billion in tariff revenue for the 2025 calendar year. His own qualifier was he may have to make sizable adjustments to that number. And like the ‘land’ qualifier, the tariff qualifier makes the projected numbers absolutely worthless.
Actual Numbers – Year Over Year as of June:
Consumer bankruptcies up 11.8% – 519,486
Business Bankruptcies up 4.5% – 23,043
“EVERYTHING IS RIGGED.
Every institution in America is sold out, corrupted and politically rigged to favor Big Government and Big Business. “America is a lost country,” explains Paul Craig Roberts. “The total corruption of every public and the private institution is complete. Nothing remains but tyranny. And lies. Endless lies.”
Hammer Thors
Agreed
Something is up when it comes to the chip making companies. I know people personally at AMD and what their positions are and they are high ranking positions. They were leading edge people back in the late ’80s. Recently AMD gave early retirement access to some of their employees. At least 1,000 people left within the last year. In that kind of industry talent is of a high class nature to remove 1,000 people says there’s some type of change happening.
I had a small business and after 2008 I could get every job and not make a dime. The IRS and a guy in the back room that kept punching that button to increase your tax liability and to remove all deductions. I stopped working on my own went to work for a company in the same type of work that I did for myself and Cash Wise I never had so much money.
could you explain more your thoughts on AMD
Lying cheating and stealing. Oh my