Can You Stomach Being PM or President Austerity If The Answer is NO, Don’t bother running: Liz Truss resigning as British prime minister – October 20, 2022,
I bring this post writing about former President Donald Trump, and how LUCKY is his NOT to be President of the United States because although I’ll give Donald Trump credit for comprehending the importance of REGULATION CUTS, had he still been president in 2022, he would have received ZERO credit for what he did during his four years in office.
With that said, I also have to talk about the NEGATIVES of Donald Trump, first of all, his stance on Interest Rates; many of us remember when Donald Trump attempted to PUBLICALLY shame Jerome Powell for raising interest rates. Apparently, the greatest economy in the history of the world couldn’t handle a few basis point rate hikes.
This was the first indicator for me that Donald Trump had an idea of how the economy worked, but he didn’t really get it because, truth be told, the market would have SWALLOWED higher interest rates if Trump kept on slicing regulations; furthermore, Trump would have DRAINED THE SWAMP if he had the COURAGE to allow interest rates to rise, but eventually, Jerome Powell, who likely feared death threats from Trump supporters capitulated driving interest rates back down UNNECESSARILY.
In 2022, Joe Biden has tacked on FAR MORE regulations to the economy, and Jerome Powell has jacked up interest rates, and the U.S, quite frankly, is doing better than a lot of countries; now, if we’re to be specific, it’s mostly the upper middle class and rich doing well right now, but you’ll notice the little effect INTEREST RATES are having on the global economy, what’s causing the most economic DESTRUCTION are all the government imposed REGULATIONS on economic activity.
Even though the U.K has a supposedly Conservative government in place, they’ve been regulating the hell out of PRODUCTIVE industries within their jurisdiction because of all of these U.K regulations and the worlds DEPENDENCE on the U.S CONSUMER, the DEFLATING U.S economy under Joe Biden is SOAKING UP investment.
People are FLEEING to the U.S dollar; why? Because the U.S consumer is spending a lot less, and almost EVERYTHING is priced in U.S dollars. What this means is that even if your business is not a U.S business, maybe the CHINESE entity that assembles or manufactures your widgets in some way, shape or form is being harmed by the U.S economic downturn.
The British Pound has recently collapsed; I think the last time the Brish Pound was this trading this low was in 1985. Why are people DUMPING the Britsh Pound? Some argue that it’s because of TAX CUTS; no, the problem is that Liz Truss made no attempt to scale back REGULATIONS, no form of AUSTERITY was proposed by Liz Truss. She merely assumed that cutting taxes would generate revenue; the market knows that government also has to DUMP this stupid climate change agenda, and if a government doesn’t have the heart to do that, well, the global economy will have to wait until there’s a VIABLE alternative to oil.
The pain I’m referring to is the pain of WITHDRAWING SUBSIDIES to these ZOMBIE companies; people tend to forget that government regulations lead to monopolies and monopolies lead to ZOMBIE government and corporate entities that would otherwise be BANKRUPT had it not been for the preferential treatment they receive from Government powers.
We are in JAPAN territory now, for those of you unaware, Japan has a bunch of ZOMBIE companies that would go bust had it not been for the GOVERNMENT OF JAPAN. Now, what makes Japan better than the U.K and the U.S is that Japan managed to salvage their manufacturing, but you see even that’s starting to show signs of problems because even I forget that in order for Japan to be a manufacturing powerhouse, it requires RAW MATERIALS that because of this war on fossil fuels is making more EXPENSIVE for Japan to obtain because again, raw materials are priced in U.S dollars, and if the Japanese Yen is falling in value, this is actually a DEFLATIONARY indicator.
So as I’ve been stating with my #LateStageSocialism hashtags as well as my frequent posts about ECONOMIC DEFLATION, everything points to AUSTERITY MEASURES. Now the world has the choice to go in the same direction as Argentina, in that no matter how obvious it is that Argentina’s BIG GOVERNMENT is the problem, the people continue to vote for the same stupid left wing policies or someone with some heart comes along and articualtes Austerity Measures in a way the people can support.
Now, because of the Liz Truss resignation, it wouldn’t surprise me in the least if the Left Wing party(s) in the U.K start gaining traction, and right now, this would be the WORST time for the U.K to start embracing socialism, but you see this is what happens when Conservativism are to SCARED to take the spiked punch bowl away from the drunkards.
In Canada way back in 2015, I remember when the CONSERVATIVE Prime Minister Stephen Harper, instead of SHRINKING the size of the government, hired a DOVISH Central banker by the name of Stephen Poloz, who lowered interest rates resulting in Stephen Harper NOT having to shrink the size of the government, in fact, Stephen Harper went as far as to fill the Canadian courts with LEFT-WING Judges.
Well, Harper eventually lost his popularity and along came Justin Trudeau, a Far-Left politician who even the LEFT WING media in Canada admitted at the time was very WEAK when it came to matters of the economy. Well, since Justin trudeau destroyed Stephen Harper in the 2015 election, Canada is currently in RECORD debt, and Justin Trudeau’s economic strategy is to raise taxes, spend money and add more REGULATIONS to the Canadian economy.
I bring this up because these Donald Trump, Liz Truss, and Stephen Harper types won’t calm inflation. At the very least, Liz Truss recognized that she couldn’t STOMACH austerity measures, for those of you unaware, there are a lot of people, businesses, and corporate entities dependent on the government for their survival, and austerity measures equates to cutting these leeches off the public trough.
Yes, absolutely, people will take to the streets, potentially burn down buildings and be hostile towards ANY government in power because, after all, these people and entities feel ENTITLED to privileges given to them, and most won’t know how to survive without the assistance of the government, this is why most politicians avoid austerity like the plague.
You’ll notice that a lot of Conservative minded people want to blame the central banks for all of this madness; although a fair argument, I like to remind readers that Franklin Delano Roosevelt (FDR) won in a landslide, and there was a little complaint in the United States when the Federal Reserve was formed some years earlier.
Blame the central banks all you want; this economic problem we face is a DEMOCRACY problem; I would even go so far as to argue that there was a DEMAND for central banks and fiat money. In fact the architects of our current modern monetary theory, left the DISTRIBUTION of money in the hands of the PROFIT-DRIVEN private banks.
As everyone knows, lower interest rates had little effect on private lending behavior, I can’t speak on the U.K, but in Canada, the FEDERAL government had to go as far as to create a government entity that would INSURE mortgages from default. This government agency/State-owned enterprise in Canada known as the CMHC(Canada Mortgage and Housing Corporation) allowed Canadian voters who can’t find the 20% downpayment that the private banks to this very day STILL DEMAND to buy a house with sometimes $0 down.
What CMHC did was they allowed the housing market in Canada to BALLOON because now the private banks recognized that they’d be OFF the hook if the markets CRASHED. Maybe not 100% of the hook, you know government people have short memories, and you know how the “blame the rich” systems work, but I bring this up because this one move by the FEDERAL GOVERNMENT, which had little to do with the central bank, created MALINVESTMENT all over the Canadian economy.
Oh, by the way, still to this very day, the FEDERAL Conservative Party of Canada has on its platform to protect the nest egg(the house) of anyone who votes for them, meaning that the Conservative Party in Canada will fight to keep the MALINVESTMENT flowing into the BLOATED Canadian housing market. You destroy malinvestment via AUSTERITY MEASURES; now in the case of Canada, if let’s say the CMHC was sold to a private PROFIT DRIVEN entity that had NO PROTECTIONS from the government of Canada, what would happen to the Canadian housing market?
If you guessed it would DEFLATE, you’d be right because no banker in their right mind is going to lend someone a mortgage with less than 20% down if the government doesn’t BAIL them out in the event of an economic collapse. So if let’s say, the central bank allowed the market to determine interest rates, no PRIVATE bank would take on the risk it’s taking on.
I bring this up because Liz Truss clearly saw the PENSION CRISIS staring her in the face, and she WISELY wanted NOTHING to do with it. For those of you who are unaware, Central Banks don’t PRINT money; they merely do their role to make money LIQUID to the PROFIT-DRIVEN private banks. Now, if I’m a private bank and you’re a welfare queen, or a zombie corporation, I’m not lending you ANY MONEY, meaning that it will be the responsibility of the Federal or other governments to subsidize your standard of living or doing business.
Now, imagine ZOMBIE companies were on the balance sheets of a lot of these PENSIONs, and you’re Liz Truss, and you just recognized the coming economic disaster staring you in the face, and the media was already blaming you for a minor blip in the markets, I don’t know about you, but I’d do EXACLTY what Liz Truss did and step down.
Because if you want the people to get on board the Austerity Measures bandwagon, this will have to be your platform from the very start. If you’re an aspiring politician, your stance starting from today has to be that I’m slicing government, and there’s going to be a lot of economic and financial PAIN for all the people of my nation.
My stance still stands, the world is headed for a period of austerity or HYPERINFLATION! You’d be wise to prepare for both! Because voters are stupid, and they’ll likely vote for the politician that promises them a QUICK fix!
Interesting times ahead