LEAKED: Trump's 10-Year Plan to Reset the Dollar
(www.youtube.com)
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Summary:
Trump is supposedly going to run a technique called "Financial Repression" where he will keep the bond yields low and push nominal GDP high so that debt to GDP ratio comes down.
Some key mistakes in this analysis.
This idea is bad only if the growth in GDP is "nominal growth" and not real growth. The video claims that the economic growth under Trump is nominal growth. However, Trump economy is growing not just on paper but in manufacturing, in jobs, etc. So clearly its real growth.
The video claims that the growth happens by pumping dollars into the system. Fed injects money into the system by lowering interest rates, but interest rates have been held high through out Trump's term so far by Jerome Powell, so claiming the growth is due to money injection is faulty logic.
The video also claims that the bond yields are artificially low, and it cannot be seen in the graphs because obviously, the bond prices are stable during this period. Instead we are supposed to revalue bond prices in Gold and say "Ah see, bond prices are dropping", which means Trump is artificially lowering bond yields.
This faulty logic originates from the fact that the Gold prices have gone up in the last few months and the video is equating the increase of Gold prices with lowering bond yields.
The difference between "Financial Repression" and "American System" is simple. In the former, there is fake economic growth while keeping bond yield low. In the latter there is real economic growth while keeping interest rates low since real growth does not cause inflation.
Could you include a summary of how we got here ? Thanks
P.S. 1971 would be a good point for readers
You gotta be more specific. There is one story that starts in 1800s when American System of economics threatened the City of London's stranglehold on the world. And with the establishment of Fed, the Great Depression, the Banking Act of 1933, two world wars, Bretton Woods and gold standard, threat to empty the US coffers of its gold, exit from Bretton Woods and switching to Petro dollar, emptying the retirement accounts by late 90s, extending a runway in 2008, restoration of American System in 2025 with bringing back the original American System with Dunroe doctrine. Thats where we are now.
1971 was specific, I thought.
edit : " Donroe doctrine "
I saw that, let it go by because I thought it was early and coffee and all . . .
But, what are you doing posting on the internet friend ?
I addressed it with "threat to empty the US coffers of its gold, exit from Bretton Woods and switching to Petro dollar".
Contrary to what people think, dropping gold standard is but one dot on the continuum of how we go there.
Gold standard is bad, and it was proven when Nixon was put in the position to either hand over gold to the Cabal or make USD worthless piece of paper. He chose latter and bought us some 50 years.
USD backed by the economic power of an industrialized, energy independant US is what the future will be.
American System can only work if the whole world is free and sovereign to make trade deals that are mutually beneficial. For that, the the geopolitical freedom is important. Thats where Donroe doctrine comes.