He had it right when he ran.
- Wall Street, just like 2008, is in the middle of a massive deflationary collapse due to massive leverage and derivative fraud. Trump talks about the Fed more than any other President in modern history – Trump talks about the Fed, in a negative sense, more than any other public figure since Ron Paul.
People do not realize the signficance of this. Politicians are supposed to speak of the Federal Reserve Sytem as a neutral, technocratic, “non-political” institution.
Of course the Fed is not “non-political” nor “neutral” in any way. It is the most political institution in America. It is the key power nexus. It’s not the Federal Reserve Board (FRB) – they are merely the figureheads, appointed by the government, that “set policy.” But their constituents are the banks, their owners – literally, the Federal Reserve System is owned by the major banking/financial institutions.
Mere democratically elected politicians, not even the President, are supposed to put public pressure on them, and certainly not in front of the peasants who aren’t even really supposed to know what the Fed is. Trump – because he is in many ways absolutely clueless – is breaking this consensus because he is, rightly, terrified the Fed will pull the rug out from under his “record stock market and black unemployment.”
Cut the Fed out. Make sure all state and local governments are 100% invested in T-bills, and source them directly from the Treasury. No need for the Fed nor their merchant banks.
Do the same with the big pension funds and certain strategic industries. Why keep pretending that the five major Defense Contractors are anything but state-run enterprises? When your only customer is the federal government there is nothing “free market” about your operation. You’re nothing but the Ministry of Missiles.
- As the Federal Reserve and their member banks collapse, seize their collateral in bankruptcy court, and go direct MMT. Why “let” the Fed print the money as debt, when the actual government can simply print it directly? Typically, this would cause inflation, but this is impossible now because the entire debt structure is defaulting and they can’t print money fast enough to replace the destruction of the credit/debt money.
Ben Bernake was right – the way to stave off deflation is to drop money out of helicopters. The problem is that the Helicopter money gets immediately scooped up by the banks who use is to “loan” more to people who already can’t pay their debts.
So don’t let the banks interrupt this helicopter money this time and just use it to create more debt, thus making the problem worse. Direct deposit the new money into individual’s credit union accounts.
In fact, let the Post Office provide checking and passbook savings accounts again. The financial industry will hate this, but that means it’s good – finance should be a low-margin industry like a utility, not 25% of the entire economy.
- Massive infrastructure spending. Roads, bridges, environmental cleanup. Think about the social effects of this:
Lots of blue collar men immediately put to work in skilled and unskilled jobs. The jobs pay well. As finance dries up, land and housing prices will tank – which is good. The baby boomers are dying off. Without mass immigration, there is plenty of housing at fire sale prices.
All those newly employed blue collar men can now afford houses.
- What happens when millions of white men from the working classes have well paying jobs and can afford to buy houses? All that hard work means they get big muscles and high testosterone levels.
Plus, the full bank accounts make them cocky.
What is the effect on women? They literally smell it and start ovulating.
So, Sally and Jenny think, “what am I going to do for the next ten years? Keep flirting with creepy men at the bar and the diner for shitty tips? Keep working ringing the register at Walmart for no pay? Working at a boring, soul crushing office for low pay but decent health insurance?”
“Or … I could just marry Billy, get pregnant, and stay at home and raise the kids. When they are a little older, I can join the church charity, the homeowners association and the local school board.”
We can call the kids resulting from everyone being quarantined the #Coronials.
We can get this done, folks. All we need to do is shut the borders and hang the bankers.