Saturday, August 23, 2025

Polaris of Enlightenment

Economist: Tariff turmoil temporary – Swedish economy remains resilient

Donald Trump's USA

Published 7 April 2025
– By Editorial Staff
Claes Hemberg does not believe that Swedes need to feel any long-term economic anxiety about the current customs chaos.
5 minute read

The announcement of Trump’s trade tariffs and the world’s response in the form of counter-tariffs have led to blood-red figures on the stock market and alarms that the world economy may be heading for a historic crash.

The fall continued on Monday, but independent economist Claes Hemberg believes that the panic is greatly exaggerated, that the crisis is temporary and that the Swedish economy as a whole is likely to do relatively well.

Hemberg compares the situation to covid and the lockdown policy five years ago and believes that we are now facing something similar where it is now tariffs instead of lockdowns that create economic uncertainty.

The economist explains that the stock market’s reaction is not due to the poor performance of individual companies, but to uncertainty about future economic developments, interest rates, household finances, international trade and politics.

– For the economy, there is probably no consequence at all, but the stock market is allowed to make a mess of things like this. It’s not strange, it happens. However, economists, politicians and business leaders must agree on how we should work going forward.

– We cannot surprise each other with different punitive tariffs or taxes, but we have to find a way to work together so that we can build relationships for the long term, because that’s how economics works. It is based on trust, not on surprises, shock therapies, false promises or false threats for that matter, he continued on state television SVT.

“A small delay”

As for the Swedish economy, Hemberg believes that the expected economic recovery is likely to be delayed due to the prevailing uncertainty, but that the effect is expected to be short-lived.

– We will probably only have a small delay. Households are waiting to start consuming, buying a new sofa or new clothes for that matter. There have been higher wages just last week, and we see that interest rates will be low going forward here.

– The tariffs are here and causing some disruption, but it’s probably a temporary issue that we’re discussing and will sort out in the near future. It shouldn’t truly affect our economy – just delay the recovery by a few weeks or maybe a month, he speculates.

“Trump is talking nonsense”

He emphasizes that the market unrest should be seen more as a reaction to the surprise element of the tariffs rather than genuine concern over the economy itself. Hemberg also believes that anyone with a 10- or 20-year investment horizon should sit tight and not panic-sell their funds or stocks, despite the steep downturn. This is because today’s developments won’t affect long-term goals.

– Sometimes there’s thunder and storms in our economy, and today is one of those days. That’s when you stay indoors, watch a movie, or maybe bake some cinnamon buns. Don’t go out now, stay home, I’d say.

Trump has also called on the US Federal Reserve to lower interest rates, something that Hemberg is very critical of.

– He’s quite consistent in claiming and pointing out things that are not a president’s business. The US has an independent central bank, just like Sweden. It’s a public authority responsible for monitoring inflation and the labor market to maintain a rate that supports society, not one influenced by White House politics

“Can’t act like this”

China has responded to Trump’s announcement by imposing its own counter-tariffs, and Hemberg believes that many are inspired by the Chinese and that the EU or Japan may make similar decisions.

– Maybe China is signaling here that they don’t support the kind of politics Trump is promoting and are responding in kind.

– That might have come as a bit of a surprise. But at some point, we also need clear signals back to the White House that you can’t act like this. If we want a society that encourages discussion, mutual trust, and the kind of global trade we so badly need, this won’t do.

“The stock market is a weather vane”

The economist believes that the stock market turmoil will continue for a couple more weeks at most and that the reason is that we simply have not been in this situation before.

– It’s not a big deal if the market jumps around a bit. It does that sometimes, and we just have to accept it. These uncertain days are often very short, intense, and uncomfortable, and they might make our stomachs churn a little.

Hemberg argues that the Swedish krona is unusually strong today and that Swedes will be able to travel more than before, that energy prices are coming down and that there are several other good economic signs.

– Just because there is a person in the White House in the United States who does not understand economics, I do not think we should be worried – even if the stock market is currently turbulent.

– Economics is something that spans over time – many generations, frankly. It’s not something we solve today or this afternoon. The stock market is just a kind of weather vane showing us where things are heading right now – and that fluctuates, and should fluctuate.

“More medicine and bandages needed”

He speculates that Trump may propose new negotiations in response to the counter-tariffs, and that there are likely to be new talks and discussions where all parties agree to back down.

– Just look at what happened five years ago when he was president. It was the same kind of tariff talk then.

– Now the tariffs are broader, tougher, and more intense, so we need more medicine, more bandages, and more talks. It’ll likely take a week or so to sort this out, but we can’t have a policy that’s so surprising or marked by such poor cooperation.

“No big surprises”

With regard to the development of inflation, Claes Hemberg believes that it simply moves in cycles and that it tends to rise at the beginning of the year, but then falls slightly in the spring.

– There are no big surprises. Energy prices are falling, gasoline prices are falling, and yes, things are looking good for our economy. The economy is hopefully gaining momentum here.

– Swedish households are quite cautious after these years of high inflation, and I understand that – that it takes time to win back their confidence again, and the Riksbank is struggling with this. That’s their main goal – to get households to come back to the shops and consume and live a normal life again, he concludes.

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Nvidia and AMD to pay 15 percent of China revenues to US

Donald Trump's USA

Published 13 August 2025
– By Editorial Staff
Lisa Su, CEO of AMD, holds up an AMD Zen 5 chip during the presentation of next-generation processors at Computex 2024 in Taipei, Taiwan.
2 minute read

American semiconductor manufacturers Nvidia and AMD have agreed to pay 15 percent of their revenues from chip sales in China to the US government. The arrangement is the condition for obtaining export licenses under President Donald Trump’s administration.

According to sources familiar with the situation, including a US government official, both companies approved the financial arrangement to obtain export licenses for the Chinese market, which were granted last week.

The American official stated that Nvidia agreed to share 15 percent of revenues from H20 chip sales in China, while AMD will provide the same percentage from MI308 chip revenues. The Trump administration has not yet decided how the money will be used, reports Financial Times.

Never seen before

According to export control experts, this is the first time ever that an American company has agreed to pay a portion of its revenues to obtain export licenses. However, the arrangement fits into a pattern under the Trump administration where the president urges companies to take actions, such as domestic investments, to avoid tariffs.

The Commerce Department began issuing H20 export licenses on Friday, two days after Nvidia CEO Jensen Huang met with President Trump. The administration has also begun issuing licenses for AMD’s chips to China.

Nvidia did not deny the arrangement and said: “We follow rules the US government sets for our participation in worldwide markets”. AMD commented: “Our initial licence applications have been approved” and added that the company “adhere to all US export control laws and policies”.

Criticism from security experts

The decision to sell the chips to China has drawn criticism from American security experts who argue that the H20 chip will help the Chinese military and undermine US strength in artificial intelligence.

— Beijing must be gloating to see Washington turn export licences into revenue streams, says Liza Tobin, a China expert who served on the National Security Council during Trump’s first administration.

In a letter to Commerce Secretary Howard Lutnick, Matt Pottinger, former deputy national security advisor, and 19 other security experts warned against granting H20 licenses. They called the H20 a “potent accelerator of China’s frontier AI capabilities”.

Nvidia dismissed the criticism as “misdirected” and rejected that China could use the H20 for military purposes.

The debate comes as the US and China hold trade talks that Trump hopes will pave the way for a summit with Chinese President Xi Jinping.

Trump deploys National Guard to “liberate” Washington

Donald Trump's USA

Published 12 August 2025
– By Editorial Staff
President Trump announces that 800 National Guard soldiers will initially be deployed to combat crime and restore order in Washington, DC.
4 minute read

At a press conference on Monday, US President Donald Trump announced a massive operation to combat crime in Washington, DC.

As part of the measures, the city’s police will be placed under federal control, and hundreds of National Guard soldiers will patrol the streets to make the city safer. Trump simultaneously warned that New York could be next for similar measures.

— I’m announcing a historic action to rescue our nation’s capital from crime, bloodshed, bedlam and squalor – and worse. This is liberation day in DC and we’re going to take our capital back, Trump said during a press conference at the White House.

The president expressed frustration over what he described as the growing crime in the city.

— Our capital city has been overtaken by violent gangs and bloodthirsty criminals, roving mobs of wild youth, drugged-out maniacs and homeless people, Trump said and continued: “And we’re not going to let it happen anymore. We’re not going to take it”.

Trump noted that the operations would begin quickly, in the same way as the measures taken at the southern border to stop illegal immigration. “We’re going to clean it up real quick, like we did on the southern border”, he clarified.

“Will be tough”

According to US legislation, the Home Rule Act of 1973, the president has the right to take control of Washington’s police force for up to 30 days, with the possibility for Congress to extend the measures. The Trump administration has sent documents formalizing the takeover to Congress, and later in the day, DC’s police chief and other federal officials met to discuss next steps.

— This will be an opportunity for us to come together and collaborate on being able to go out and execute warrants, said MPD Police Chief Pamela Smith.

Defense Secretary Pete Hegseth clarified in an interview that the National Guard will not just be present but will act proactively in their operation.

— They will be strong, they will be tough and they will stand with their law enforcement partners., Hegseth said, adding: “If you take an action or a shot at them, there will be a consequence”.

“Doubled up on Baghdad”

Trump defended his decision and showed a chart during the press conference comparing murder statistics per capita in Washington, DC with the capitals of cocaine-exporting Colombia, Mexico and Iraq.

— We doubled up on Baghdad, he claimed, describing the situation as “completely unacceptable”.

— They’ll immediately begin massive enforcement operations targeting known gangs, drug dealers and criminal networks to get them the hell off the street, Trump said. He also suggested that certain criminals, whom he claimed came to the US illegally, will be deported.

Photo: screenshot/Truth Social/Trump

— They come from Venezuela, they come from all over the world. We’re going to get them the hell out, he explained.

The National Guard will also assist in a larger operation to remove homeless camps from public places, including parks and underpasses.

— We’re getting rid of the slums, Trump promised and mentioned that beautifying the city’s public areas and repairing median strips and potholes are part of the operation.

“False numbers”

DC Mayor Muriel Bowser, who is a Democrat, confirmed that she will comply with the federal operations but expressed concern that Trump’s decision represents a major interference in local self-governance.

I’m going to work every day to make sure it’s not a complete disaster, Bowser said, claiming to be particularly concerned about the presence of plainclothes law enforcement personnel.

— All law enforcement be identifiable by uniform, a badge, a jacket, so that people know that they are law enforcement.

Trump addressed the criticism and responded in his way.

— I know it’s not politically correct. We’re going to get them the hell out. They won’t be here long,

New York next?

Defense Secretary Hegseth also clarified that soldiers from other states will assist in the operation.

— They will be standing right alongside our federal agents, like they were in Los Angeles. They’re going to be proactive.

Trump also mentioned that he is looking at other cities that may need similar federal operations.

— You look at Chicago, how bad it is. You look at Los Angeles, how bad it is. We have other cities that are very bad. New York has a problem, Trump said, suggesting that more cities may receive federal support if the situation doesn’t improve.

The president also took the opportunity to express his long-term visions for the city.

— Washington, DC, should be one of the safest, cleanest and most beautiful cities anywhere in the world, and we’re going to make it that, Trump summarized and promised that he intends to “clean it up real quick”.

Trump to clear Washington of homeless and criminals

Donald Trump's USA

Published 11 August 2025
– By Editorial Staff
Even previously, homeless tent camps have been torn down in the capital - but now Trump promises more far-reaching measures.
2 minute read

Donald Trump is launching a harsh offensive against crime and social problems in Washington, DC.

The President promises to drive away the city’s homeless population and quickly imprison criminals roaming the streets – an offensive he says will make the capital “safer and more beautiful than it ever was before”.

“We want our capital BACK”, the President declares, and according to Trump, the measures will be implemented without delay.

“The Homeless have to move out, IMMEDIATELY. We will give you places to stay, but FAR from the Capital”, he writes on the Truth Social platform, and continues:

“The Criminals, you don’t have to move out. We’re going to put you in jail where you belong. It’s all going to happen very fast, just like the Border. This will be easier — Be prepared! There will be no ‘MR. NICE GUY'”.

Trump announced that more details will be presented at a press conference on Monday.

Photo: screenshot/Truth Social/Trump

Reaction to brutal assault

The President’s statement comes shortly after Edward Coristine, 19, also known as “Big Balls” and formerly employed at the Department of Government Efficiency (DOGE), was attacked during the night leading to Sunday. Coristine, who now works at the Social Security Administration, was assaulted by about ten youths after trying to intervene in what police suspect was a carjacking attempt.

At least two of the suspected perpetrators have been arrested, and a reward of $10,000 has been offered for information leading to the arrest of the others.

Already on Thursday, Trump presented plans to deploy federal law enforcement agencies throughout DC to reduce crime. The capital is governed under the Home Rule Act of 1973, which gives the city’s mayor and council certain powers, but where Congress has the right to review and overturn local laws – something that rarely happens.

“More violent than Baghdad”

Some Republicans have gone further and proposed a federal takeover of the capital.

According to the DC Metropolitan Police Department, violent crimes this year have decreased by 26% compared to last year, murders by 12%, and total crime by 7%. Compared to 2023, violent crime in 2024 has dropped by a full 35%. Despite the decline, DC still had the fourth highest murder rate in the US in 2023.

— It is our capital city. It is more violent than Baghdad. It is more violent than parts of Ethiopia, than parts of many of the most dangerous places in the world, said Stephen Miller, White House Deputy Chief of Staff for Policy, to reporters last week.

Trump: No trade deal if Canada recognizes Palestine

Donald Trump's USA

Published 31 July 2025
– By Editorial Staff
Is Donald Trump's loyalty to the state of Israel beginning to affect the US negotiations on the country's trade agreements with other nations? NOTE: The image is an archive photo.
2 minute read

US President Donald Trump threatens to halt a trade deal with Canada if the country recognizes Palestine. The statement comes after Canada’s Prime Minister confirmed plans for recognition at the UN General Assembly this coming September.

Canadian Prime Minister Mark Carney announced on Wednesday that the country plans to recognize Palestine as an independent state when the UN General Assembly convenes in September.

Carney highlighted humanitarian arguments and argued that prospects for a two-state solution have disappeared, which other countries – including France and the United Kingdom – have also expressed during the summer.

However, the recognition is conditional and dependent on reforms within the Palestinian Authority as well as promised general elections in 2026 – elections in which Hamas would not be allowed to participate.

Donald Trump reacted immediately and wrote on his Truth Social platform that Canada’s intended recognition would have serious consequences for relations between the countries.

– That will make it very hard for us to make a trade deal with them, Trump declared shortly after Canada’s announcement.

Shaky relations between US and Canada

Trump has previously threatened to impose 35 percent tariffs on Canadian goods from August 1, something that has already caused concern in trade relations between the neighboring countries.

According to American sources, Trump’s move aims to increase pressure on Canada to refrain from recognizing Palestine. The goal is also to defend US trade policy and geopolitical interests at a time of increased tensions surrounding Israel and the war in Gaza.

Mark Carney, (LPC), Canada’s Prime Minister. Photo: World Economic Forum/CC BY-NC-SA 2.0

The trade relationship between the US and Canada is among the world’s largest and has historically been very close, but over the past year several major conflicts regarding tariffs, energy and climate regulations have strained cooperation.

Analysts believe that an American trade halt or high tariffs could have significant economic consequences for Canada’s export industry.

It remains unclear how far the Trump administration is prepared to go, or whether Canada will stick to its planned recognition ahead of the UN meeting in September.

The situation is expected to be closely watched by both other allied countries and international organizations in the coming weeks.

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