When I published “frankly, I’m terrified” in October, even I could not comprehend the dire ramifications of Donald Trump’s election – which at the time, I predicted would have the political, economic, and monetary impact of a “BrEXit times ten.” Care of the most rigged markets of all time, this world-changing event hasn’t yet been discounted in equities or Precious Metals; although arguably, it has – and continues to be – by collapsing worldwide currency markets. Like, for instance, the UK Pound; which upon yesterday’s definitive call by Prime Minister Theresa May for a “hard BrExit,” plunged to essentially the lowest level in UK history. This, in a nation that already has, care of lunatic money printing by the Bank of England, one of the world’s highest costs of living.
Equally ominously, the political, social, and geopolitical backlash is approaching “worst-case scenario status, before Trump has even been inaugurated. In other words, if such chaotic international and intra-national infighting is proliferating in the post-election “honeymoon” period, just imagine what will occur next week – when, as discussed in this weekend’s “candidate Trump to President Trump, and all it entails,” he actually does anything. Although arguably, between his polarizing Cabinet selections and non-stop Twitter attacks and counter-attacks on essentially everyone, he’s done plenty already – in true Trump form, burning as many, or more, bridges as he builds.
Which goes back to what I have said all along, about how in essence, the 2014 election was a battle between the “loose cannon and the wicked witch” – a battle, like McCain versus Obama in 2008, and Bush versus Gore in 2000, would end badly for America no matter who won. Not that I believe anyone has the ability to save America’s finances, economy, or monetary system, given just how past the point of no return they have passed. However, in this particular case, one choice was so particularly bad, I actually found myself vehemently supporting someone I have always felt disdain for. And frankly, irrespective of what happens in the coming years, I don’t just think, but know things would have been worse with Hillary Clinton.
Whose legacy, unfortunately, will likely grow stronger in time, given that America’s horrifying demographic and economic trends nearly guarantee an even greater amount of socialist fervor in the 2020 election. Heck, by then, Donald Trump – having inherited the worst economic disaster in American history – will likely have alienated half of the planet; and potentially, far more than half of the American electorate. And don’t be surprised if Hillary, from her likely future bully pulpit as the most likely next mayor of New York City, becomes an even more powerful, and dangerous, political figure than today. As will other Atlas Shrugged-like cartoon characters like Larry Summers, Paul Krugman, and Ken Rogoff.
Back to Trump, even when I started fervently supporting his candidacy – or better put, Hillary’s defeat – I vehemently espoused my belief that he was a loose cannon who could not care less what people think. And a billionaire to boot, with nothing to lose. To the point that his well-publicized list of enemies would likely grow exponentially as President – only this time, said enemies will be far more powerful, and dangerous to America, than Rosie O’Donnell and Megan Kelly. Not to mention, as discussed in my November 10th Audioblog, “turning on Trump,” I don’t believe any of his major campaign promises are politically or economically viable – although I’m quite confident that partisan or otherwise, Congress will figure a way to enact the very worst of them.
However, even I couldn’t comprehend at the time just how polarizing a Trump election would be – due to his own actions, as well as those of Democrats and Republicans alike. Not to mention, the hordes of fervent pro- and anti-Trump citizens – the former of which, include countless, passionately followed celebrities with as much ability to “rabble rouse” as Jesse Jackson and Al Sharpton combined. Which even more ominously, includes hundreds of thousands of well-heeled, “educated” citizens – given the “neo-liberal” brainwashing that has consumed the Dumbed Down States of America, as more and more economically desperate people seek the security of printing press-financed “free lunch” promised by the likes of Hillary Clinton and Bernie Sanders; despite not a shred of historical evidence that this is even remotely possible.
Trump will shortly realize the economy is as bad as he blindly portrayed it in his anti-Hillary campaign rhetoric. Not to mention, that the self-described “big, fat, ugly bubble” the Fed-catalyzed financial markets are in must inevitably crash; and that his foot-in-mouth braggadocio about “re-negotiating” America’s exploding debt – in reality, a “technical” debt default – may define his Administration, no matter what policies he enacts. I mean, what part of the most bullish speculative positioning in the history of paper copper futures – amidst the biggest global economic decline in generations – says anything but bad news is coming, and right soon?
I found it extremely interesting that just two days after publishing “2.5%, ‘Nuff said” – in which I suggested interest rates are more likely to defy the universally believed, but comically fallacious “Trump-flation” meme by plunging than, as is equally universally anticipated, surging – I learned that “big money” traders are now more short U.S. Treasury bonds than at any time in history! To which I ask, who are you going to believe? Me, or the brain-dead, Kool-Aid drinking, market manipulation ignorant group of Keynesian zombies managing “other people’s money?”
As for his own polarizing actions, he has already alienated tens, if not hundreds of millions of people around the globe – partly due to his lack of understanding of global trade, and more so his complete lack of diplomatic skills. As while it works fine being a “tough guy” on the construction site where you’re the boss; or the set of your television show; it decidedly does NOT work in politics – particularly after you’ve been elected, when aggressive rhetoric doesn’t “achieve” anything but the burning of bridges. And man, have those bridges been burned – at a record pace for any American politician, despite Trump not even having taken office yet!
Yes, many of such “bridges” were flimsy to start with – or in the case of the liberal “fake news” media non-existent. However, many were somewhere between sturdy and rock solid – yet in a few short weeks as President-elect, Trump has successfully transformed them to smoldering embers. I mean, was it really worth it, diplomatically speaking, to counter-attack iconic Civil Rights leader and long-time Georgia Congressman John Lewis, who had his skull fractured by white police officers whilst marching with Martin Luther King in 1965 – on Martin Luther King Jr. Day?
Or, for that matter, single-handling starting a “border war” with Mexico, one of our oldest allies and largest trading partners – to the point that, just one year after having vacationed in Cancun, I wouldn’t dream of exposing my family to the danger of traveling to a nation where Americans will shortly be viewed as “enemies,” if they aren’t already.
Yes, I understand illegal immigration is a problem – and that like Europe’s Moslem “migrancy crisis,” America faces a Mexican migrancy crisis of its own. However, particularly in light of Trump’s attacks on the very NAFTA policies America’s own politicians approved, he is inciting a trade war that can only be bad for America – not to mention, the Mexican Peso, which hit a new all-time low this morning. Throw in the fact that Mexico is already reeling from low oil prices, dramatically declining oil production, and rampant corruption, and we’re looking at a potentially significant political and geo-political crisis in the coming four years right on America’s border, nearly entirely created by Trump’s loose cannon tweets.
Then there’s his verbal war with outgoing CIA Director John Brennan; and his largely misguided war on the automotive industry – both internationally and domestically. I mean, does he really think American consumers will benefit if car companies adhere to his dangerously communist-leaning, and equally dangerously nationalistic, decrees?
And frankly, his aggressive comments; and decidedly undiplomatic actions; toward America’s largest creditor, and cheap goods provider, China, are – for lack of a better description, unfathomable. I mean, Trump has not even taken office yet, and he’s already threatened to label China a currency manipulator; enact massive, suffocating import tariffs; recognize China’s mortal political enemy Taiwan diplomatically; and even attempt to militarily prevent China access to disputed South China Sea waters, in which we aren’t even party to the dispute! To that end, not one, but two Chinese State run newspapers led this weekend with warnings of how China would “take off the gloves” with America, if Trump continues to provoke it.
Last but not least, there’s this weekend’s shocking interviews with two German newspapers – in which Trump essentially alienated all of Europe’s power structure, by praising the UK BrExit, and predicting other European nations would follow; calling NATO “obsolete” (it is); and even insulting Angela Merkel personally, by suggesting Germany’s migrancy crisis is her fault, and that he was prepared to cut ties with Merkel if she doesn’t prove trustworthy. Let alone, that the biggest reason he supports other nations “BrExiting” the Eurozone is that, for the most part, it only serves Germany.
Yes, my friends, these are the pre-inauguration exploits of a “loose cannon” who will be taking over America at a time when its political, economic, social, and monetary backdrops have never been more tenuous. To which, I guess the only positive “counter-spin” I can muster is that it least he’s not the Wicked Witch of the Western Hemisphere – i.e., Hillary Clinton. And oh yeah, no matter what he tries, it will provide a worldwide boon for Precious Metal demand, amidst arguably the tightest physical supply outlook in generations.