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Thread: The Grenade against the throat of the Global Economy

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    The Grenade against the throat of the Global Economy

    Here’s what I’d like to point out in all this, as talk of a recession grows and the potential for the escalating trade war to exacerbate it, there is a key element that I could be wrong about, but that I would really, really like to point out as a bit of a think aloud if you will, that could potentially have more catastrophic consequences than the recession and the trade war combined and could take both and turn them from a large and out of control fire into a thermonuclear bomb.

    And that is the reaction of The Chinese Government and Trumps hostility toward the Federal Reserve.

    Now for the Chinese Government I’d like to point your attention towards this and specifically the government reaction to the 2015 stock market crash:

    https://en.m.wikipedia.org/wiki/2015-16_Chinese_stock_market_turbulence#2015_Government _response

    Jailing people and arresting financial journalists for “spreading rumours” and possibly creating a larger bubble via moral hazard by simply giving cash to brokers to buy up stock makes you wonder how they may try to grapple with an out of control crisis that could make it even more explosive by doing something too drastic.

    The other key is if a recession does hit and the trade war is in full swing, the what would already have been a lower demand for Chinese goods, coupled with the trade war, coupled with a Chinese Government bad reaction and then finally and most importantly, the potential for Trump to do something drastic with The Federal Reserve and try to replace the chairman with a lackey in order to do something incredibly stupid and risky in an attempt to jump start the economy.


    And this isn’t coming from nowhere, in February the White House Counsel has looked into whether the President could remove the Fed Chairman and it could be a Supreme Court issue in the end.

    Bloomberg - Are you a robot?

    Breaking the independence of the Federal Reserve would send shockwaves throughout the global economy and completely remove confidence in the American financial system again turning the original two catalysts into a full blown economic nuclear bomb and that doesn’t even begin to take into account what the treasury and Trump might do or say or tweet on top of that to make things even worse.

    Now this may not come to pass but it is something I was thinking about earlier and just thought I’d throw out there for consideration and whether my economic betters who have a better understanding could say if there’s anything to this.


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    Re: The Grenade against the throat of the Global Economy

    I can't tell you how many Trump voters I've heard say they voted for him because they hope he burns the entire government and society down so they can rebuild from the ashes. Well, they cheer as he does just that. Many don't support him for having good ideas, rather out of pure schadenfreude and hatred for America and its ideals.

    He's playing with something extremely dangerous that he doesn't understand. Losing faith in the Fed, among all the other fires he's starting, would be catastrophic for the American economy. He doesn't care about our long term well-being, only what happens during his one term.

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    Re: The Grenade against the throat of the Global Economy

    Quote Originally Posted by RabidAlpaca View Post
    I can't tell you how many Trump voters I've heard say they voted for him because they hope he burns the entire government and society down so they can rebuild from the ashes. Well, they cheer as he does just that. Many don't support him for having good ideas, rather out of pure schadenfreude and hatred for America and its ideals.

    He's playing with something extremely dangerous that he doesn't understand. Losing faith in the Fed, among all the other fires he's starting, would be catastrophic for the American economy. He doesn't care about our long term well-being, only what happens during his one term.

    I have heard and read that repeatedly too.

    I can also note that when you ask these people what they want to see after this chaos is over, they never have an answer. they do have a selection of pat talk radio slogans, but an actual plan is not there.

    Sort of like the GOP plan to replace Obamacare (this year, we mark the tenth anniversary of waiting for the GOP health care plan).

    We also hear about how proud they all are about “pissing off liberals”, as if this were some sort of end, in itself.

    I’m fairly sure that the essence of Trumpism is entertaining a lowbrow audience, that knows nothing about politics, economics or world affairs, and whose collective world view is no broader than Archie Bunker’s.

    That’s the way Trump talks (right down to the Queens accent). His is a cheesy entertainer, and little else.

    Unfortunately, his hard core base expects little more than to have their prejudices validated.

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    Re: The Grenade against the throat of the Global Economy

    Quote Originally Posted by Jetboogieman View Post
    Here’s what I’d like to point out in all this, as talk of a recession grows and the potential for the escalating trade war to exacerbate it, there is a key element that I could be wrong about, but that I would really, really like to point out as a bit of a think aloud if you will, that could potentially have more catastrophic consequences than the recession and the trade war combined and could take both and turn them from a large and out of control fire into a thermonuclear bomb.

    And that is the reaction of The Chinese Government and Trumps hostility toward the Federal Reserve.

    Now for the Chinese Government I’d like to point your attention towards this and specifically the government reaction to the 2015 stock market crash:

    https://en.m.wikipedia.org/wiki/2015-16_Chinese_stock_market_turbulence#2015_Government _response

    Jailing people and arresting financial journalists for “spreading rumours” and possibly creating a larger bubble via moral hazard by simply giving cash to brokers to buy up stock makes you wonder how they may try to grapple with an out of control crisis that could make it even more explosive by doing something too drastic.

    The other key is if a recession does hit and the trade war is in full swing, the what would already have been a lower demand for Chinese goods, coupled with the trade war, coupled with a Chinese Government bad reaction and then finally and most importantly, the potential for Trump to do something drastic with The Federal Reserve and try to replace the chairman with a lackey in order to do something incredibly stupid and risky in an attempt to jump start the economy.


    And this isn’t coming from nowhere, in February the White House Counsel has looked into whether the President could remove the Fed Chairman and it could be a Supreme Court issue in the end.

    Bloomberg - Are you a robot?

    Breaking the independence of the Federal Reserve would send shockwaves throughout the global economy and completely remove confidence in the American financial system again turning the original two catalysts into a full blown economic nuclear bomb and that doesn’t even begin to take into account what the treasury and Trump might do or say or tweet on top of that to make things even worse.

    Now this may not come to pass but it is something I was thinking about earlier and just thought I’d throw out there for consideration and whether my economic betters who have a better understanding could say if there’s anything to this.

    That may be, but the United States was almost entirely responsible for the last global clash.

    And the record of economic mismanagement that preceded that hardly makes us much better than the Chinese may turn out to be.

    But if you’re contemplating a future in which our economic health depends on decisions made outside this country, you’re on to something.

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    Re: The Grenade against the throat of the Global Economy

    Quote Originally Posted by TomFitz View Post
    I’m fairly sure that the essence of Trumpism is entertaining a lowbrow audience, that knows nothing about politics, economics or world affairs, and whose collective world view is no broader than Archie Bunker’s.
    There is little doubt in my mind that the far left in America absolutely deserves Donald Trump. His nonapologetic and inflammatory attitude is intended as a middle finger toward "progressives" who seem to believe it is a sign of sophistication to call millions of people uneducated, uninformed and bigoted. In lieu of a rebuttal, insults are offered under the presumption of moral and intellectual superiority. If politicians paid more attention to the concerns of blue-collar, working-class citizens and spent less time debating the most sensitive and politically correct way to address criminals, Donald Trump would not be president. Moreover, this might come as a shock to you, but many of those people voted for Obama and some of them supported Bernie Sanders. What they abhor is this more-liberal-than-thou attitude which you so brilliantly exemplified here.

    With the current crop of Democratic candidate, you're looking down at another 4 years of the same thing.

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    Re: The Grenade against the throat of the Global Economy

    Quote Originally Posted by RabidAlpaca View Post
    Many don't support him for having good ideas, rather out of pure schadenfreude and hatred for America and its ideals.
    Here are a few things Trump said, verbatim after Charlottesville:

    "As I said on Saturday, we condemn in the strongest possible terms this egregious display of hatred, bigotry, and violence. "
    "No matter the color of our skin, we all live under the same laws, we all salute the same great flag, and we are all made by the same almighty God."
    "Racism is evil and those who cause violence in its name are criminals and thugs, including the KKK, neo-Nazis, white supremacists and other hate groups that are repugnant to everything we hold dear as Americans."
    "We are a Nation founded on the truth that all of us are created equal."


    That sounds like he is defending American values. In fact, it's far more American than what you will hear people on the left ever say. They're the ones who would object that rights are created by the government and are not the gifts of God. They're the ones who insist on introducing preferential treatment based on race and gender. They're the ones burning the flag. They're the ones who argue America was founded on racist principles. They're the ones engaged in threats, violence, and intimidation meant to silence conservatives.

    Trump does not display a deep admiration for Mussolini, recruiting thugs dressed in black from head to toe and have them beat up people with whom he disagrees. We all know who those people are: they call themselves Antifascists without the slightest awareness of the irony.

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    Re: The Grenade against the throat of the Global Economy

    Going back on topic.

    I never understood the ranting among conservatives over the Federal Reserve. Peter Schiff spent some 4 years talking about hyperinflation that we have yet to see anywhere. It's not surprising to me that it did not happen, though I never heard the man admit he was wrong.

    To be fair, if there is a conservative bias here, it must have to do the bureaucratic and technocratic aspect of monetary policy. It's not necessarily a matter of ignorance. I'm sure conservatives, liberals, and independents would fare similarly if questioned on economics.

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