Yossi Schwartz ISL (RCIT section in Israel/Occupied Palestine), 08.04.2025
American imperialism President Trump’s announcement on Wednesday of significant tariffs on U.S. trading partners around the world led to sharp declines in the markets. The S&P 500 index fell to its lowest level in 11 months, with $5.4 trillion in market capitalization erased in the last two trading days of the week.
The biggest bank confirms Trump’s destructive road to the world capitalist system and the attack on the working class and the oppressed.
According to “Israel Today”: “J P Morgan published a gloomy forecast for the US economy tonight , according to which the US economy is expected to enter a recession in 2025 as a result of the new tariffs announced by President Donald Trump this week.
Michael Fruley, the bank’s chief economist, wrote in a message to clients that the bank estimates that US real product is expected to contract by 0.3% in the coming year, compared to a previous forecast of 1.3% growth. “The expected contraction in economic activity will lead to a decline in hiring, and over time will lead to an increase in the unemployment rate to 5.3 percent,” Frawley added.
JPMorgan is not the only bank to update its forecasts following the tariff announcement. Barclays estimated on Thursday that U.S. GDP is expected to shrink in 2025, “consistent with a recession.” At the same time, Citi economists lowered their growth forecast to just 0.1%, and UBS economists cut their forecast to 0.4%.
Jonathan Fingel, chief economist at UBS in the US, wrote in a note that “we expect U.S. imports from the rest of the world to decrease by more than 20% in our forecast range, mostly in the coming quarters, bringing imports as a share of GDP back to pre-1986 levels. The intensity of the new trade policy implies significant macroeconomic adjustments for a $30 trillion economy.”
Frawley estimates that the Federal Reserve will start cutting interest rates as early as June and will continue to cut interest rates at every subsequent meeting until January, bringing the interest rate to a range of 2.75% to 3%, from the current range of 4.25% to 4.5%. These reductions are expected to occur despite an increase in core inflation to 4.4 percent by the end of the year, from the current level of 2.8 percent.”
If American imperialism has been for a while a sinking ship it’s new insane captain is pulling it under the water drugging with it the other capitalist states. The capitalist system will not disappear by itself a socialist revolution is needed to save humanity from this dying rotten system. The major crisis of humanity is the lack of international working-class leadership to lead to a socialist world revolution.
American workers get rid of the bum and build a worker party fighting for workers’ government!
For humanity to live, capitalism must be overthrown!