We've reached peak insanity, peak stupidity, peak absurdity, peak-political correctness, peak dishonesty, peak corruption and peak cronyism. No where is this more obvious than in the Obama administration and Obama Democrats. This is why Trump is rising. However indelicately he speaks, Trump is mostly correct in his observations about immigration, trade, cronyism, jobs, the problem of Islam and the stupidity and incompetence of Washington DC.
Another reason why chronic trade deficits haven’t already “visibly” bankrupted the US is that we no longer have sound money (gone is Bretton Woods and long-gone is a gold standard). With a gold standard, the country who imports too much, relative to exports, would see gold outflows. Since gold is money, loss of gold slows the country importing too much and balances trade. Also, with a gold standard, the Treasury and Federal Reserve can't just willy-nilly pump up the money supply like they are doing now. In our era of "fiat" paper money, the central bank and Treasury continue pumping up "money" to keep the game going. We’re bankrupted but not yet “visibly”.
We've really reached the end of the road of can kicking. From Fast Collapse or Slow?, I explain why this is so.
Trump is signaling an end to “globalization” which is bankrupting our nation, killing our industries and jobs market, hurting incomes and the middle class. It had to end sometime. Incomes for non-elite workers have continued dropping especially since 2008. Struggling consumers in the US don’t have any money left to buy Chinese stuff! This is bringing down China; exports from China are down 25% this past year. Suddenly their massive debt is souring (as is our debts). We’ll all go down together.
There will be revolution in America too, but hopefully it will be mostly at the ballot box. Trump has rightly recommended stopping ALL immigration for a year or two. Our immigration system is utterly and completely broken (as you know). Trump is completely right that we’re ruled by a bunch of fools and stupid people (Why would really clever people work for the Federal government?). We haven’t won a war since WWII. We are losing royally on trade. Everything at the Federal Govt is broken and unfixed. Trump is right to be proud that he’s nobody’s puppet since he’s self-funding. I hope he proposes campaign finance reforms to get money out of politics. That would be truly ground-breaking. The funniest thing of all is that Trump is the billionaire for the common people!! Just let that sink in!
He's right about our 40 year history of lousy trade deals. Various trade deals have led to the greatest wealth transfer in human history — out of America! For 40 years, both parties have been passive as first Japan, then China and other Asian countries have essentially robbed us blind through chronic trade imbalances with America. Trump reminds us that NAFTA has also led to chronic trade deficits with Mexico. Entire industries have been exported along with high paying jobs. For 40 years, both parties have been passively watching this happen. Now, in economically hollowed-out America, drug addiction is epidemic.
These persistent trade (and current account) deficits have actually bankrupted this country. But this fact is not yet obvious as the effects of the "greatest wealth transfer in the history of the world" have been mitigated by $9 Trillion in debt-fueled spending in Obama's short time alone. Add another $3 Trillion in "money printing" deposited directly into the big banks. And the emergency policy of zero interest rates continues for 7 years running. This is masking outright Depression.
These persistent trade (and current account) deficits have actually bankrupted this country. But this fact is not yet obvious as the effects of the "greatest wealth transfer in the history of the world" have been mitigated by $9 Trillion in debt-fueled spending in Obama's short time alone. Add another $3 Trillion in "money printing" deposited directly into the big banks. And the emergency policy of zero interest rates continues for 7 years running. This is masking outright Depression.
Another reason why chronic trade deficits haven’t already “visibly” bankrupted the US is that we no longer have sound money (gone is Bretton Woods and long-gone is a gold standard). With a gold standard, the country who imports too much, relative to exports, would see gold outflows. Since gold is money, loss of gold slows the country importing too much and balances trade. Also, with a gold standard, the Treasury and Federal Reserve can't just willy-nilly pump up the money supply like they are doing now. In our era of "fiat" paper money, the central bank and Treasury continue pumping up "money" to keep the game going. We’re bankrupted but not yet “visibly”.
We've really reached the end of the road of can kicking. From Fast Collapse or Slow?, I explain why this is so.
Trump is signaling an end to “globalization” which is bankrupting our nation, killing our industries and jobs market, hurting incomes and the middle class. It had to end sometime. Incomes for non-elite workers have continued dropping especially since 2008. Struggling consumers in the US don’t have any money left to buy Chinese stuff! This is bringing down China; exports from China are down 25% this past year. Suddenly their massive debt is souring (as is our debts). We’ll all go down together.
There will be revolution in America too, but hopefully it will be mostly at the ballot box. Trump has rightly recommended stopping ALL immigration for a year or two. Our immigration system is utterly and completely broken (as you know). Trump is completely right that we’re ruled by a bunch of fools and stupid people (Why would really clever people work for the Federal government?). We haven’t won a war since WWII. We are losing royally on trade. Everything at the Federal Govt is broken and unfixed. Trump is right to be proud that he’s nobody’s puppet since he’s self-funding. I hope he proposes campaign finance reforms to get money out of politics. That would be truly ground-breaking. The funniest thing of all is that Trump is the billionaire for the common people!! Just let that sink in!
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