Donald Trump needs to focus on getting a production boom starting in the USA to blunt inflation caused by possible tariffs, tax cuts and wage increases. He can do it and fund it by taking a few simple steps, bypassing Wall Street altogether.
The productivity boom should be driven by three things, substituting imports expected to fall away due to tariffs, developing new technologies and education.
First, there is a need to replace those products that will be subjected to import tariffs from countries like China and Mexico. To put up tariffs without having companies positioned to invest and manufacture them and, so, capture the new market share is to invite inflation. Inflation will, in turn, trigger interest hikes from the Fed and, so, accelerate the devastation of the US economy, already burdened by historic levels of debt due to the financial crimes of banks like Goldman Sachs.
A strategic approach is required, a kind of Marshall plan for the USA, a method to identify the specific products needed as well as the incentives for companies to invest.
Wall Street is not good at identifying productive companies because it does not want them. Wall Street’s profits depend on getting companies and people into debt, forcing them to pay higher interest rates and then foreclosing on their assets.
That is why banks have channelled so much cheap money and liquidity not into manufacturing but into mortgages and real estate to inflate prices (something from which Trump himself has ironically profitted from, those he has paid, like everyone else, interest)
Banks print money out of thin air when they give a credit under the fractional reserve banking system. They need only 3 dollars for every 100 dollars they lend, charging interest (1% interest means banks earn one dollar for nothing, 3%, 3 dollars etc).
Banks do not give anything of much value and so if they never get their “credit” back, they have lost nothing.
Foreclosure king Steven Mnuchin now seems to be eyeing Fannie May and Freddie Mac. But if Trump’s voters find themselves thrown out of their homes by the likes of Mnuchin, Trump will likely find himself voted out of office. People may accept him not making the economy much better, but they won’t accept it if it gets even worse for them.
The shares of the blue chip corporations so heavily supported by Wall Streets are the fronts for the New World Order tyrannical one world government like Google and Facebook, Lockheed Martin etc.
Secondly, the production boom should be driven by investment in new technologies, the next generation of products for America, such as semiconductors and solar power.
Productivity growth will generate wealth (as long as the Federal Reserve and Wall Street does not hike interest rates again when Americans will find most of their disposable income will go to the banks, whose shares are exploding)
Thirdly, there needs to be investment in education and skills. A productive, booming economy needs a good education system.
All of this has to be funded.
To fund this production boom, Trump can issue debt free money through the Treasury as John F Kennedy did in 1963.
By issuing money through the Treasury, Trump does not need to go to the private Federal Reserve or Wall Street and pay them for the right to use the legal tender in the USA. It is the right of the American people.
Inflation can be kept under control by a committee.
Also, Trump can issue an executive order allowing companies to have bank licences.
BMW, Siemens and Volkswagen and Airbus all have their own banks to supply them with liquidity.
Why should Ford and Dell not have their own banks to invest in new plants? Why should they have to go to Goldman Sachs and ask them for loans at high interest rates when they can supply their own credit?
In the mid term, Trump must cancel debts. Under the current system, debts will automatically grow. Every time money is created and a debt is paid off, more debt is created.
Focussing on the Frank Dodd may be a mistake. Some regulations may be burdensome, but the idea that the tax payers and consumers have to be protected from the crooked banks, aiming to crash economies, is good.
Best of all is to renationalize the Federal Reserve and clap the Goldman Sachs bankers like Steven Mnuchin for their fraud. Who knows when they get a mortgage or loan from Goldman Sachs that they are just printing money out of thin air?