I have given one or two warnings about Trump and his economic policies since he was inaugurated earlier this year.
One of my predictions was that he wanted to crash the dollar, effectively removing its status as the world's reserve currency.
He has had a good go at doing so. Many news organisations have variations on this chart, this one coming from a newsletter from the New York Times:
Does it matter?
Yes, because it helps increase inflation in the USA.
Yes, because it tends to inflate US interest rates.
And yes, because it indicates a lack of confidence in the USA, which will have repercussions in world power relationships that will, in turn, have knock-on effects in US politics.
None of these is positive for the rest of the world.
So, yes, this matters, which is precisely why I have talked about these issues and their implications. It gives me little satisfaction to have been proved right, precisely because there is no sign that anything is going to get better. Trump's USA is still heading for fascism. That might downgrade the dollar, but the political implications are much more significant. It's not just that the USA is in decline; it is going to drag the world down with it.
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Perhaps it wouldn’t be so bad if the global economy broke down.
Remember the COVID lockdowns? We managed to supply everybody with everything they actually _needed_ with a tiny fraction of the (ecologically destructive) economic activity we have now. This tells us that the vast majority of “work” is actually just running around doing stupid pointless shit for people with too much money, and perhaps we should stop doing that.
David Graeber expressed this sentiment better than I can:
https://theanarchistlibrary.org/library/david-graeber-after-the-pandemic-we-can-t-go-back-to-sleep
It is incredible to think that the biggest attack on the sovereignty of the U.S. has come from within its own wealthy elite, and this shows even more that the wealthy everywhere seem to be the biggest existential threat we face at the moment.
I am planning a series on the wealthy – we might even start recording this morning, but it is going to be very hot again
If we had a competent Government here, they could try to shield us from the worst effects, by for example diversifying reserves and trade links; investing in long-term growth and productivity; strengthening financial defences, and maintaining and improving global alliances and influence. Sadly, in the light of your other posts this morning, it doesn’t look likely!
Trump has one big hurdle to overcome, and that is the American people. I can’t see him managing it.
And yet the Republican’s in the Senate are currently spending all night trying to get Trump’s Big Beautiful Bill passed. I strongly recommend watching the top three segments from Lawrence O’Donnell’s show to see this in real time, with interviews with leading Democrat senators about the various amendments they tried to put forward – all of which the Republicans voted down (including food aid for children under 12; continuing to fund the consumer protection agency; adding a 1% tax increase on earnings over $10 million; and cutting Medicaid and Medicare while giving tax rebates to large corporation – Meta would get $15 billion the day after Trump signs the Bill, for example).
What wasn’t covered – as Musk hadn’t announced it at the time of O’Donnell’s programme – was his threat to primary every politician who supports the Bill and also set up an alternative political party if the Bill gets signed into law. That’s certainly put the cat amongst the pigeons.
https://www.msnbc.com/the-last-word/watch/warren-republicans-want-to-cut-health-care-food-assistance-for-tax-give-aways-to-the-rich-242507845730
Thanks, Ivan.
That’s for later. There are videos to make now…
The real possibility of a complete fascist takeover in the United States would have the most frightening consequences. Hitler was destroyed by military force. Who could beat the U.S. in a war?