You take the good with the bad: Trump says aides rejected his request to adjust value of dollar – September 22, 2020,

Late Stage Socialism and The Global Debt Reset, how Donald Trump might accidentally force the world to shrink the size of government!

I genuinely think during Donald Trump’s second term in office he will experience a currency crisis. I actually think it’s going to happen because interest rates in the U.S are going to be forced to go up. I don’t think Trump comprehends what happens in a ‘great’ economy.

As the economy improves interest rates have to normalize, I mean sure the central banks can manipulate the U.S dollar, but what I think Trump doesn’t understand is the powerful impact the economy he helped to create is going to have on the rest of the world.

One of the main reasons why globalists prefer the Democrat Party is because they understand the deflation problem. Now, when most people hear or read about this or that billionaire, what people fail to realize is that most billionaires don’t have access to the billions of dollars being reported.

Once your asset price is propped up for any reason, the liquidity of your assets price doesn’t represent your true wealth in a FREE MARKET. In a nutshell, a lot of rich people have their wealth protected tied up in liquid assets, and to prevent taxation, most rich people keep their cost of living very high.

Deflation is a contraction of assets, it’s a contraction of credit, it’s deflation of asset prices, it’s a clear sign of who is swimming naked. There are a lot of rich people, whose assets are providing any real value to the markets.

I write this because trump’s wanting to manipulate the U.S dollar to prop up his economy is actually a really dumb idea. The countries that manipulate their currencies for the benefit of the U.S citizen do so, primarily to pay for their bloated governments. No, there are countries like Japan, Germany, Switzerland, China, etc. who manipulate their currency to have a competitive advantage in the consumption-led U.S economy, but you don’t combat them by manipulating your currency.

The tariffs in my opinion are enough, when it comes to China, as Sam Walton points out in his Made in America book, he’s not in the business of charity. Sam Walton refused to subsidize ‘Made in America’, he’d buy mande in America if what they offered was competitive with other countries, but Sam wouldn’t buy ‘Made in the USA’ just to be charitable.

When Trump wants to lower the value of the U.S dollar just to simply screw over China, it shows his real estate ignorance on the topic of money. Tariffs can be perceived as a form of welfare. Because we’re on a fiat standard I actually agree with a tariff tax personally, because yes a country can manipulate their currency to take business away from your country, where, in my world, tariffs are all about leveling the playing field and not giving one side a competitive advantage over the other.

In my world you can’t have a minimum wage and then complain about tariffs. A minimum wage welcomes devaluation of currency from the opposition. Once the Federal Government has a minimum wage, they’re essentially shooting themselves in the foot, which is why in countries like Sweden and Switzerland they abolished their federal minimum wage.

I point this out because what Trump has done with regulation cuts is he’s given American business an economic advantage over the western world. Trump does what Trump wants to do, but I think he’s making a huge mistake calling for the devaluation of the U.S dollar.

I now call Powell ‘Trumps bitch’ because Powell had the right idea when he began raising rates as the economy improved. Powell had Paul Volker written all over him until Trump brought Powell into his world of politics. Powell eventually obeyed and lowered interest rates for no legitimate reason. China soon unleashed COVID-19 and here we are!

If Biden wins the economy crashes, we all know this, but if Trump wins, this also presents a whole new problem of recovery. Often ignored is why other countries buy U.S treasuries, they line up for them mostly to get the U.S economy propped up. Why? Do you ask? Have you met some of the consumers in other countries? Because you should.

Socialism breeds frugality and PERSONAL fiscal responsibility for consumers, on the flip side because most countries don’t enjoy the standard of living that Americans enjoy, the welfare States in other countries are paid for primarily by depreciating their currency to the Greenback.

Now, if America ever opts to become more like socialist countries, as was the case under Obama, prior to the Tea Party movement, the U.S dollar will fall in value. The U.S dollar dropped in value under Obama, because the perception was he was going to reshape America into a socialist hell hole, it wasn’t until the Tea Party movement that the markets started to realize the limits of Obama’s powers and the dollar began rising.

I would anticipate the same thing would happen under Joe Biden. Sure the markets will crash, but the Republicans aren’t going to roll over and allow the Democrats to walk all over the constitution. Trump at times appears to imagine himself to be a dictator, even the Fed doesn’t know exactly what’s going on with the U.S dollar.

I only blame Powell for one reason, I liked the Powell who didn’t care what Trump said. If Trump wins, Powell is going to be faced with the reality that he has to raise interest rates. Now, will Powell do the right thing? I don’t know the answer to that, but if he does the wrong thing there’s going to be a currency crisis centered around the U.S dollar.

Why, will there be a currency crisis, because the size of government all over the Western World is too large. The technology sector as I’ve been saying for years has deflated EVERYTHING! Technology is being exported all over the world, led by China, and the lifeblood of the economy ‘Oil’ has deflated, Oil is everywhere, the world is awash with oil, this is also deflationary.

The only entity that hasn’ shrunk all over the world is the size of government. Now, often I write that there’s a demand for the U.S government in the form of the US military, but in most countries, their government is bloated with socialism and because the economy is deflating GLOBALLY a lot of governments all over the world are being financed by devalued local currencies, the problem with what Trump has done for the U.S economy is that his economy is so much better than most parts of the Western World economies that the only inflated cost in most countries is the sizes of their governments.

So while the real economy deflates, the size of government in most countries WON’T! A lot of countries are going to see their currency DEBASED AND THEY’RE NOT GOING TO KNOW WHY!

This is why if Trump wins in 2020, expect to see a lot of different countries’ economies COLLAPSING their entire bank systems in turmoil and the Federal Reserve won’t be able to provide enough liquidity to keep these socialist countries propped up. Now again once this happens, I don’t know how the Federal Reserve will react, the fed does a better job than Gold does, because Gold doesn’t provide liquidity to socialist governments, the Fed will!

America does have a pension crisis and a bunch of other financial problems, but the entire global economy revolves around U.S dollars. So even if many of these bankrupt pensions fail, there’s no guarantee that the U.S dollar will be devalued.

Sorry America, but your Federal reserve is still one of the best central banks in the world. I know that doesn’t say much, but it’s the reality and it’s a reality that I don’t think Donald Trump understands.

I call what’s going to happen in the next 2 years LATE STAGE SOCIALISM! Although I like a lot of what Trump does, what I don’t think he imagines is that he could be face to face with a GLOBAL debt reset!

Trump says aides rejected his request to adjust value of dollar | financialpost.com

Interesting times ahead!