Sleepy alligator in the noon day sun
Lyin’ by the river just like he usually done
Call for his whiskey, he can call for his tea
Call all he want to, but he can’t call for me
–Grateful Dead, “Alligator”
And just like that, the first half of 2025 is in the books. To say that the past six months have been very eventful would be the height of understatement. Since the calendar turned, we’ve ushered in a new president, and new Republican majorities in both the House and the Senate. That new president sent markets reeling in April with what I think was an outrageous “reciprocal tariff” scheme that is neither reciprocal nor well-thought out, as part of the formula used to calculate the tariff levels was based on trade deficit data, which has zero to do with new taxes (what tariffs really are) on American imports.
The market plunged in response, then the market surge began on April 9, when President Trump suspended/postponed the tariffs from going into effect. Since then, the market has vaulted to new highs, in part because of the positives the Trump administration is going to usher in, such as making the tax cuts in the “Big, Beautiful Bill” permanent.
And so, with this backdrop, it’s time for another edition of The Deep Woods AMA, or Ask Me Anything, issue. Not surprisingly, the first question is about tariffs.
Mark T. from Reno, NV, writes: “I think you are mostly right about tariffs, but what about the unfair trade practices from China and the intellectual property theft that country, and other countries, engage in?”
Mark, while these are certainly concerns that need to be addressed by our government in the effort to protect U.S. businesses from theft, there is absolutely no practical, moral or even Constitutional justification for imposing taxes on the American people as a remedy.
In fact, imposing import taxes on Americans in an effort to stop nefarious forces in China from reverse engineering American products is simply a non-sequitur. I think if you want to combat intellectual property theft, why not do something like ban certain types of goods (those stolen, for example) from entering the country? I think that would be a better, more practical tool for righting a wrong (however imperfect it might be).
Scott W. from Tampa, FL, asks: “What is your take on the feuds between President Trump and Elon Musk, and between President Trump and Fed Chair Jerome Powell?”
Well, Scott, while both of these “feuds” are unfortunate and not, in my opinion, befitting the office of president, each is very different. In the case of Trump vs. Musk, you have two very big egos at war with massive platforms they both use rather masterfully to attack foes and to reshape the national mindset. Some of what Trump has criticized about Elon and the amount of government subsidies his companies receive is certainly valid. But then, much of what Elon has criticized about the spending and deficit increases associated with the Big, Beautiful Bill are also legitimate.
As for Trump vs. Powell, I am in the Fed chair’s camp here. Trump wants Powell to cut interest rates, which makes sense because all presidents want cheap money and the improved economic and market conditions that go with it. Yet the reason, as he has stated, why Powell can’t cut interest rates yet is because he doesn’t yet know how negative the effects of tariffs will be on the economy and inflation. If President Trump abandoned his ill-fated tariff scheme, interest rates could be cut and the American economy could be unleashed, and dare I say, could be made great again.
Sylvester S. of Brentwood, CA, asks: “Jim, what’s with this ‘Alligator Alcatraz’ thing down in Florida? Why so much emphasis on detaining and deporting immigrants?”
First, let me say that from a political perspective, I understand the appeal of the perceived strength and use of force being wielded by the administration on the issue of immigration. Candidate Trump rightly saw a failed Biden administration policy on immigration, which lacked clarity and security, and he used it as a wedge issue to win back the presidency. That’s certainly fair game.
What I don’t like is this new emphasis on immigrants as being all bad, or as all criminals, or as “poisoning the blood of our country.” The fact is that immigration, both legal and illegal, is a net positive for America.
Furthermore, the mass deportation, mass incarceration and mass fear the administration is conjuring up throughout many big cities as well as throughout many small towns has, in my view, been a big negative for freedom and the American spirit.
I think that rather than spending millions of dollars constructing and maintaining fear-inducing detention facilities, complete with nature’s moat of pythons and alligators, we should focus our resources on reforming a broken immigration policy that prohibits willing purchasers of labor from hiring willing sellers of labor. Another way to look at this is through my “small-l” libertarian lens, which calls for more freedom, more commerce, more cooperation and less fear, less force, less incarceration and more integration.
Yeah, you may say I’m a dreamer, but I’m not the only one, especially on this sensitive issue.
**************************************************************
A Tender Warrior’s Tears
Sadness rains but smiles come in between
And the struggle remains the heart of the scene
–Jim Woods, “Tender Warrior”
“I’ve been crying a lot.” That’s what my very best friend of what is now, unbelievably, 40 years told me this morning. This most-excellent, caring, loving and thoughtful man has recently been plagued by one of the most difficult things we all have to deal with in life, and that is loss. The loss a few months ago of his mother, who spent some 100 years on earth, and then the very recent loss of his beloved cat of 17 years prompted his tears.
Now, when we experience loss, it’s proper to mourn that loss and to acknowledge that we will never be quite the same without the values that left us. Tears are part of that acknowledgement, and to that I say… let them flow. Allow yourself to feel deeply. Allow yourself to hurt. Allow yourself to experience the searing pain that comes with knowing you shall forever miss the once-animated creatures that now are silent.
Realize also that as humans, sadness rains but smiles come in between. Also remember that the struggle at the center of life, that beautiful struggle to cultivate love, achievement and meaning, is the very reward we all seek. And so, let the tears flow and embrace the struggle.
Wisdom about money, investing and life can be found anywhere. If you have a good quote that you’d like me to share with your fellow readers, send it to me, along with any comments, questions and suggestions you have about my newsletters, seminars or anything else. Click here to ask Jim.
In the name of the best within us,
Jim Woods
