"The goal is to remake the world’s monetary regime….
"But there are consequences to Trump’s plan - one of which is a guaranteed period of painful adjustment. ...
"Trump doesn’t just want a weaker dollar - he wants a dollar that is radically devalued against every other currency on earth. ... a dollar devaluation of 90%.
"That may sound horrific - but it’s only slightly less than the devaluation of the 1970s, when the dollar lost 75% of its purchasing power.
"Anyone not holding 'real stuff' - like gold, silver, natural resources, commodities, etc. - is going to see a dramatic drop in their standard of living.
"Team Trump will deal with US debt the way governments always deal with debt…
"By inflating it away - and with it, the purchasing power of your US dollar savings....
"But he wants more than just a weak currency.
"He wants to change the nature of the US economy by copying China['s] model of state-backed investment.. ... [and] industrial policy ... [demanding] large profitable corporations reinvest in China. ...
"Trump’s plan will [demand] the same of US companies. And the Trump plan is already in motion. Apple announced a $500 Billion investment in America in late February ... [Intel were forced to give a ten percent cut to the US Government.] ... Expect to see many announcements like these ....
"[Trump's advisor Stephen] Miran makes it clear that nothing good can happen until the burden [sic] of having the reserve currency is shared by our trading partners.
"Does that mean the dollar will lose its status? Probably."
6 comments:
I think he's giving Trump far too much credit to assume he has such a specific and nuanced goal as this.
We shouldn't necessarily attribute to malice, or ingenious conspiracy, something that is more easily explained by ignorance or stupidity.
Agree that Casey is attributing a pattern to behaviour that is mostly just random, or is little more than "use the Fed to create massive inflation to monetise soaring budget deficits." Nonetheless, the result would be the same whether intended, or not.
The Fed should never have been created and should be destroyed now but....oh well.
Meantime, this is one of the people running it and effectively making decisions about global markets...
A plagiarist, politically deranged, unqualified, and a fraudster.
BTW, since it's impossible to get even 218 members of the House to vote to cut the budget (the leader of the GOP's "Freedom Caucas recently tried to get $55 million for his district), let alone to pay down the debt, the reality is that the debt is going to be defaulted on, Trump or no Trump.
I no longer see any other way out.
I still find it astounding that when I wrote my first article on No Minister in 2019 about US debt, This is not going to get better, it was a mere $22 trillion.
Now $37+ and I reckon it'll hit $50 by 2030 - and that's before we consider the unfunded liabilities of Social Security, Medicare and Medicaid.
If it's not Trump it'll be someone else who pulls this trigger.
Do not bother to examine a folly. Ask yourself only what it accomplishes.
Including unfunded liabilities it's calculated to exceed US$200-trillion presently. That is, ten times as much... Ouch! Yet, it's business as usual. No collapse just yet though.
The present expectation is that the UK defaults its sovereign bonds with France close behind or possibly immediately preceding, then the Germans and the rest of the EU (minus a few small non-Euro hold outs). Leading up to that is capital flight for safe harbour. It's already happening. Can you guess where the destination might be? HINT: North America. Not Canada. Not Mexico.
BBB grants the Federal Government an ability to issue up to an extra US$4-trillion in Treasuries. That provides headroom to absorb inrush capital which they can direct towards infrastructure, the new apprenticeships (1,000,000 trades apprentices) and various projects of one sort or another (read up on what is planned, it is clever and probably their last chance to arrest their slide and try for a possible recovery). Whether this works out or not depends on where the money is directed and for what purpose.
EU is nearly over. Europe and the UK as major players in geopolitics, international finance, culture, influence, entertainment, manufacturing, productivity, currency, trade and relevance are going away. They have no collateral, limited energy and not a great future to look ahead towards. USA has a chance. The odds are against them avoiding a serious crisis, but they may be able to avoid collapse. Maybe. For sure many of you won't like how they'll proceed. It isn't ideological. It's all pragmatic. It's not what could be called moral. It's the type of thing that happens in a down and dirty war. Right now that is what this is- war. EU vs. USA.
Turning now to President Putin and President Trump meeting in Alaska. Two points to retain.
The two major superpowers are talking again. They didn't do this during the tenure of #46. That was foolish and dangerous. Recall that even during the height of the Cold War the two super-powers did meet and they did talk. It was this discussion and negotiation which steadily reduced the risks of a nuclear conflagration which no-one wanted. Refusing to meet and discuss matters with one's opposition is a foolish policy. Thankfully that nonsense has ceased and these two superpowers are talking again. They are beginning to find they have some common ground. From there they can start to negotiate and eventually find a way to co-exist.
Second issue to notice is the venue chosen- Alaska. This is a big signal. It is important. So is the date that was chosen. See if you can figure out the message.
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