Economic change and Donald Trump
The problem is debt is a tiger by the tail. The minute you release that tiger it is going to come back and destroy you.
The main losers in this battle of debt are going to be anyone on a fixed income without the ability to increase that income.
I include myself in this group. We are on Social Security with fixed pensions. We are fortunate in that we both worked most of our lives and at the same place so we did get good pensions and union wages.
Most people in today’s world get 401Ks instead of pensions.
Since about 1980, this world has been going against the common person out there and wages and pensions have not even began to keep up with things.
People that own our corporate economy understand this. Hyperinflation under Donald Trump’s plan will occur. The result will be a disaster because the very people that profit from this plan will be the ones that go bankrupt.
The delicate balance is the cost of material goods produced by low-cost labor abroad. This cost is not realistic. Has never been realistic. But the basis of it was to feed millions of people that would have otherwise had no choice but to go to war or starve. That was in 1970 under Nixon.
There is an old oriental proverb. It says that “Those that feed China rule.”
All other considerations in China are meaningless.
What China has to have is a delicate balance between feeding and employing their massive population and keeping their host alive.
Their host is the rest of the world. The obvious host is not the United States. It is the USSR which happens to be right next door.
At this point in time, transportation costs and automation of products is quickly making the Chinese economy obsolete. With Robotics and new tooling methods such as the 3-d printing method of producing new tools to put industry together, retail goods can be produced cheaper here than they are produced by Chinese and Indian labor abroad.
So what happens next? Obviously the Russians and Chinese are preparing. Possibly for war. That is the obvious truth. They are willing and able to spend millions of lives to keep in power. Without food, they have no choice.
We do have choices. One solution is the reduction in hours of the workforce to produce an economy where almost everyone that wants a job can have one. Mr. Franklin Roosevelt tried this with some success.
In the 30s. We went from a 48 hour 6 day week down to a 40 hour week with everything over 40 hours considered time and one half wages.
It worked but it took a lot of time and a world war to bring us totally out of the depression of the 30s.
We went to national unions to increase wages.
This was offset by a national inflation rate of approximately 4.5% per year. What it did do is increase the number of people paying income tax and gave the government a lot of economic power.
That national unions was a poor man’s way of increasing gradually the national standard of living. The main winners of that were the corporations. With an increase in wages, they were able to make huge profits on the masses.
To bring all of that back, we have to reverse the trend of corporate greed to the point that they make a healthy profit but are not draining the economy of ready funds for the masses.
This is so complicated and economic change that I doubt if any one person can accomplish it in 4-8 years. But that is what must happen if we are to avoid a currency collapse.
What is needed is going to be a complete reversal of the wage structure of the country and possibly the world. There has to be a change so that people have money to save and to spend. Right now with the changes in debt of the average person due to the change in health care insurance no one has discretionary income to help the economy. I predict that retail stores will close after this Christmas season or the public will go into a massive credit card debt to do Christmas.
I think China sees this and is preparing to go to war.
I think that Russia is also preparing to aid and abet this war supplying weapons and other goods to the Chinese. China will spend the money in Russia to accomplish this.
I think Russia wants Alaska back! And is using the China to get it. I believe they have an agreement to allow a massive troop movement over the Bering Straits with China producing the Army.
I believe the agreement might be that China gets Canada and Russia gets Alaska.
I hope I am wrong.