Pokimane dives into the IMF's latest report, breaking down how tariffs might (or might not) save the US from a fiscal cliff. Spoiler alert: it's complicated, and my chat is probably more reliable.
Pokimane dives into the IMF's latest report, breaking down how tariffs might (or might not) save the US from a fiscal cliff. Spoiler alert: it's complicated, and my chat is probably more reliable.

IMF Says What Now?

Okay chat so the International Monetary Fund (aka the fancy finance people) dropped a report saying tariffs might *actually* help the US fiscal deficit in 2025. I know right? My reaction exactly: 'Is this a bamboozle?' Apparently they think the US deficit will drop from 7.3% of GDP in 2024 to 6.5% next year all thanks to these shiny new tariffs. But before you start celebrating like you just won a Valorant match hold up.

The Fine Print (It's Thicker Than My Lore)

Now here's where it gets spicy. The IMF is all like 'Yeah but the tariff revenue increase is like super uncertain.' Translation: they have no clue if this is actually going to work. It all depends on whether Americans keep buying stuff even when the prices go up. And let's be real are we really going to stop buying our overpriced avocado toast? Doubt. Also they conveniently 'forgot' about things like the 90 day pause on higher rates for smartphones and other tech. Classic!

The Caveats Are Real (And They're Spectacular)

The IMF basically threw in every possible 'what if' scenario they could think of. What if tariffs kill imports? What if people stop buying things because they're too expensive? What if this leads to a bigger economic slowdown? What if my cat Mimi starts offering financial advice? Okay maybe not that last one but you get the point. It's all super uncertain. Like more uncertain than my Valorant queue times.

Debt Debt Baby!

And guess what else? All this debt the US is racking up? Yeah that's going to make interest rates go through the roof. The IMF is saying if our debt keeps climbing we could see a big jump in long term interest rates. Which basically means everything gets more expensive. Fun times!

Basically Don't Panic... Yet!

So should we all start hoarding toilet paper and canned goods? Probably not. The IMF's report is basically saying 'Maybe this will work maybe it won't. We have no idea.' Which honestly is about as helpful as some of the 'advice' I get in my Twitch chat. But hey at least it gives us something to talk about right?

CNBC Pro LIVE?! Is this an ad?!

Oh and by the way CNBC Pro is having some kind of fancy event at the New York Stock Exchange. If you're into that kind of thing go for it. Me? I'll stick to streaming and trying to avoid getting jumpscared in horror games. Much safer for my sanity and my bank account!


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