Where’s the Inflation? Done Deal w/China - Trump’s Not Tired of Winning – Top 3 Takeaways – June 11th, 2025 - Driven By Braman Motorcars
Takeaway #1: Trump was right about everything
Elon Musk has backed tracked to the point where he’s essentially apologized for his recent behavior towards President Trump posting on X: I regret some of my posts about President @realDonaldTrump last week. They went too far. But I’m still not sure if he’s ready to breakout the Trump was right about everything hat once again. But he should. Remember when “Liberation Day” freaked everyone out and led to economists saying inflation would get carried away? Do you happen to remember what I said just a few days after Liberation Day? In My Top 3 Takeaways from April 7th, the Monday after Liberation Day during the peak of the stock market’s full-fledged freakout I offered this in explaining that the immediate 20% selloff in the stock market was a historically great buying opportunity: Are you a believer in this country? Do you believe that this country will be better off by the time President Trump’s done with his presidency than it is today? If the answer to those two questions is yes – the rest is particularly easy to digest. Here’s a fact. Every major stock market selloff in American history has proven to be a historically good time to invest in American companies. The stock market’s complete recovery happened even quicker than I’d imagined it would. But I also offered this as it specifically pertained to the impact of the tariffs on inflation: I assure you this will be net deflationary and here’s why. What’s the biggest expense for almost all Americans? Housing, right? What’s the second biggest expense for almost all Americans? Transportation of course. What’s the second biggest determining factor in costs for most Americans for those two things? The cost of financing. Do you know what the average 30 year-fixed rate for a mortgage was the day that Donald Trump was sworn in as President of the United States? 7%. Do you know what it is entering this week? 6.6%. It doesn’t sound like much until you consider that on the average home financed in this country – that equals savings of $34,000 over the term of the loan at a savings of $93 dollars per month. And that’s just the beginning. Do you know what the price was for a barrel of oil at the day that President Trump was inaugurated as president of the United States? $78. Do you know what it is today? $59. That’s a savings of greater than 20% that will be passed on to you at the pump. These are just two quick examples of how Trump’s policies, and the market reaction to them, in two of the biggest cost areas of our life immediately began to be deflationary. On that note...
Takeaway #2: What inflation?
On Wednesday we received May’s consumer inflation rate which turned out to be lower than April’s inflation rate was only a third of what economists had predicted – a third! In fact, here are the monthly inflation rates for the final three months of the Biden administration: 0.3%, 0.4%, 0.5% - which averages out to a 4.8% annualized inflation rate. Now here is the rate through the first four months of the Trump administration: 0.2%, -0.1%, 0.2%, 0.1% - for an average annualized inflation rate of only 1.2%! When was inflation last below 2%? When Donald Trump was last President of the United States – in January of 2021. The overall annualized inflation rate is still averaging 2.4% currently once the other eight months of the Biden administration remaining in the number are factored in – but what’s been clear in the early going of Trump 2.0 is that once again the economists and have been dead wrong and Donald Trump has been spot on with his policy objectives aimed at Making America Great Again. And speaking of matters involving trade...
Takeaway #3: Done deal
On Wednesday, following several consecutive days of trade negotiations with China, President Trump posted this on Truth: OUR DEAL WITH CHINA IS DONE, SUBJECT TO FINAL APPROVAL WITH PRESIDENT XI AND ME. FULL MAGNETS, AND ANY NECESSARY RARE EARTHS, WILL BE SUPPLIED, UP FRONT, BY CHINA. LIKEWISE, WE WILL PROVIDE TO CHINA WHAT WAS AGREED TO, INCLUDING CHINESE STUDENTS USING OUR COLLEGES AND UNIVERSITIES (WHICH HAS ALWAYS BEEN GOOD WITH ME!). WE ARE GETTING A TOTAL OF 55% TARIFFS, CHINA IS GETTING 10%. RELATIONSHIP IS EXCELLENT! THANK YOU FOR YOUR ATTENTION TO THIS MATTER! Shortly thereafter China confirmed Trump’s Truth. Commerce Secretary Howard Lutnick later confirmed that tariff levels will not change from here on out and that the 55% Trump cited was comprised of a 30% across the board tariff on Chinese goods – with an additional 25% for certain products that were already in place from President Trump’s first term as President of the United States. The pieces are falling into place perfectly and aside from working out some additional trade deals – which will likely be coming rather quickly from here – all that’s left is putting the finishing touches on the OBBB. Trump’s not tired of winning. I’m not tired of winning.