Deutsche Bank’s long-held analogy of “plate-spinning” central bankers acting like the old popular circus act where the performers would spin plates on numerous poles and run between them in order to re-spin before they came crashing down to the ground, has held perfectly for several years. Over the years more plates have been added and central bankers have had to run faster and faster between them to stop gravity taking over.
The problem with politically created infrastructure jobs is that, contrary to great myth, there is little evidence that more infrastructure spending is a good way to boost the economy or promote job growth. In reality, these projects often fail to deliver on their promised gains while costs spiral out of control, leading Oxford University economic geographer Bent Flyvbjerg to propose The Iron Law of Megaproject Management: “Over budget, over time, under benefits, over and over again.”
We began writing on the War on Cash some time ago when it was still just a theoretical ploy that we believed banks and governments were likely to employ as their economic adventurism continued to unravel. But, in the last year, several countries have, as a part of the War on Cash, begun removing larger banknotes from circulation in order to force people to perform all economic transactions through the banking system, ensuring that the banks would gain total control over the movement of money.
Whether consciously or not, Trump has revived this long-disdained trend in American politics, and, what’s more, he has won. So how does –or should – he translate this kind of rhetoric into reality?What follows is the first of a series of columns on what a foreign policy that puts “America first” would look like. Today we deal with US-Russian relations. Stop the new cold war – Hillary Clinton’s unhinged accusation that Trump is a “Russian puppet” gave us a scary preview of what Russo-American relations would be like if she had won. These crazed charges were in response to Trump’s polar opposite view, exemplified when he repeatedly said “Wouldn’t it be nice if we could get along with Russia?” Given a clear choice between a new cold war and rapprochement, voters clearly preferred the latter. Now it’s time to translate rhetoric into reality. Trump should immediately meet with Russian President Vladimir Putin and begin negotiating a comprehensive accord to settle all outstanding issues, including:
In particular, the policies he has proposed are very similar to those of Dilma Rousseff, the former president of Brazil who was ousted from office in August. As Trump has planned to do, Rousseff enforced restrictions on imports. She promised new spending on infrastructure and granted generous subsidies to corporations with the goal of stimulating the economy, especially manufacturing….“It was a combination of protectionism and fiscal expansion,” said de Bolle, who is also a fellow at the Peterson Institute for International Economics. “Now the day of reckoning has come.”
Today Credit Suisse released its latest annual global wealth report, which traditionally lays out what is perhaps the biggest reason for the recent “anti-establishment” revulsion: an unprecedented concentration of wealth among a handful of people, as shown in its infamous global wealth pyramid, an arrangement which as observed by the “shocking” political backlash of the past few months suggests that the lower ‘levels’ of the pyramid are increasingly unhappy about.
The slightest glance at the TED spread shows that there was “something” that had changed in the middle of 2015; the inflection so prominent that money market reform would have been a welcome distraction from the obvious truth of it for those choosing to think of QE favorably. That it occurred on August 10, 2015 leaves no doubt at all about its nature as well as where it has transited from – China and its “dollar” struggle. It was that date on which the Chinese shocked the globe with “devaluation” that wasn’t devaluation, it was the recognition from the People’s Bank of China, a central bank with enormous prestige, that they were fighting a losing battle with eurodollar funding.
Now that President-elect Donald Trump has chosen Flynn as his national security adviser, media coverage has given prominence to the more serious issue of Flynn’s denunciation of Islam as a “cancer” and other manifestations of his embrace of Islamophobia. But the mainstream media view of Flynn’s military record ignores his pivotal role in devising a targeting scheme that was the basis for an indiscriminate Joint Special Operations Command (JSOC) campaign of killing and incarcerating Afghans suspected of being in the Taliban insurgency. The corporate media, which have never examined that dark chapter in the history of the Afghanistan war critically, have long treated the campaign as one of the few success stories of the war.
If one needed more evidence of the steep decay in academia, Donald Trump’s victory provided it. Let’s begin by examining the responses to his win, not only among our wet-behind-the-ears college students, many of whom act like kindergarteners but also among college professors and administrators. The University of Michigan’s distressed students were provided with Play-Doh and coloring books, as they sought comfort and distraction…A Cornell University held a campus wide “cry-in,” with officials handing out tissues and hot chocolate. One Cornell student said, “I’m looking into flights back to Bangladesh right now so I can remove myself before Trump repatriates me.” The College Fix reported that “a dorm at the University of Pennsylvania … hosted a post-election ‘Breathing Space’ for students stressed out by election results that included cuddling with cats and a puppy, coloring and crafting, and snacks such as tea and chocolate.”
Trump’s plan is what Keynes would have prescribed! Most economic commentators such as a Nobel Laureate Paul Krugman should be delighted with the US president-elect Donald Trump’s economic plan for it is going to be along the lines of Keynesian economics.