A president finds ways to get along. How does Donald Trump please the Deep State? For the longest time, your Federal Reserve has been trying unsuccessfully to create price inflation. Rising stock prices is a much easier task. The market manipulation trinity, buybacks, the short squeeze and buying outright, is in place. Central banks have successfully decoupled stock prices from earnings. Creating inflation has been a tough order. Creating inflation is difficult for everyone except Donald Trump.
For Donald Trump, the trade war is the ticket. Trump’s supporters love the trade war. Most of them have no idea what a recking ball a trade war is. It all sounds good. What else matters? A chain letter sounds good. A trade war will cause inflation. That is only one of the harmful outcomes of a trade war. So, with Trump, the Deep State gets continuing asset enhancement with the Federal Reserve plus now price inflation with tariffs.
I am going to access the damage even before it occurs. The poor and middle class will be hurt considerably. Corporate profits will benefit from higher margins. Borrower, especially the U.S. government will get massive relief. The eventual reckoning will be worse than if it had occurred before inflation was introduced.
Federal Reserve members are paid for the pretense of knowledge. They neither have the knowledge or the insight to improve the economy. Any honest economist will tell you, there is no way inflation, a little or a lot is good for an economy. Any truck driver will say the same. There is only one trade policy capable of benefiting the country as a whole. That is to unilaterally remove all tariffs and restrictions on legal goods and services entering and leaving the United States. That would not be a trade war. It would just be the best economic policy.
The truth is a hard sell. Fantasy Free Economics gains readers one at a time. Major search engines simply do not list blogs which disagree with their political agenda. As long as folks share the link to this blog and others speaking out against the grain, the truth will at least trickle into the public consciousness.
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