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President Trump (November 2016)
Donald Trump wins the presidential elections in the USA and the world is stunned. Even after the example of Britain’s divorce from the EU, many leaders stand in awe, mouth agape wondering how the American people could possibly elect a man like Trump.
Non-establishment people, those with their eyes open, know why: The populace is fed up with the institutionalised crony politics that has led the world into an economic limbo of high-cost living, stagnant wages, poor job opportunities, negative interest rates and GFC or GFS (Global Financial Stagnation).
Panic and Protest
Many ordinary people spat their dummies and angrily protested Trump’s election to the presidency. In some cases the very same people feeling the effects of the GFS. In other cases, pro-establishment mouth pieces in media, business and foreign politics blogged their discontent. Clearly none of these people understand the why of Trump’s victory. They seem oblivious to the antiestablishment or populist movement fomenting in global society and fashion their denial into criticism of the US electoral system.
Looking at the many electoral colleges of the USA, the majority of people, 80% by area voted for Trump. Some will argue that the democrats won by head count (some 200 thousand more votes out of the expected 130 to 150 million turnout were cast for Hillary than Trump) but it is important to remember that voting by college prevents more highly populated states from dictating political outcomes. Just because Californians and New Yorkers preferred Hillary (by some four million votes) doesn’t mean the larger (and possibly poorer) remnant of the country should endure economic decline for another presidential term.
End of the World?
Anyone panicked by the prospect of the “most powerful country in the world” being controlled by a man like Trump is not thinking rationally. The “most powerful country in the world” is not controlled by any one person it is controlled by the senate. It is the senate that has supported the questionable war in Syria, anti-Russian extremism, feeder-lot farming practices, sugar based diet diktat at the FDA. And it is the senate which recently voted away the Glass Steagal Act thereby opening the doors to even more corruption in the banking system.
It is the senate that permitted the FED to lower interest rates to zero and perpetuate the biggest asset bubble in human history; one that has benefited the rich at the expense of the middle and lower classes.
It is a senate populated by out of touch non-scientists and non-thinkers who more often than not simply kowtow to the biggest paying lobbyists.
Trump’s Policies
The truth is that Trump will not be able to do a lot to fix the economic situation for middle class Americans. The insurmountable public and private debt burdens strangling US and global economies can’t be magically swept away by clever policy. To entertain the idea that an economy facing financial ruin might grow itself out of peak-debt is to believe in infinite growth with finite resources. The FEDs solution, to forge money on the printing press collateralized against the creative re-use of borrowed assets, is proof that bankruptcy from unpayable debt is exactly where the world finds itself.
The next four to eight years under Trump will be interesting. They potentially represent the beginning of an era of reform, whether productive or not, in both political thinking and economic culture. The Brexit referendum and Trump’s election demonstrate an awakening of the general population to the realisation that the establishment of media, politicians, advertisers and experts do not know what is best for them and no longer deserve their absolute trust.
Consequently, we can hope that in the short term, the threat of a world war with Russia is at least quelled and costly imperialism suspended while focus shifts to some kind of honest global economic and cultural rethink.
Ultimately, no matter who is in charge, a future short on welfare, high on hardship and sacrifice is inevitable before opportunity can return. The population is too big, global debt far too high, the environment too damaged and resources too scarce for the worn out over-revved engine of modern manipulated financial prosperity to be restarted for long.
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