Is This Trump Shock A Reverse Nixon?
Posted by freedomforall 1 week, 1 day ago to Economics
Excerpt:
"the implications are so large that markets don’t fully grasp them, or don’t want to. It’s one thing for them to have been forced to recognize that guns now matter as well as butter, but it’s another to realize life is now about gunship diplomacy (“We have 11 aircraft carriers: we get to say which currency commodities are priced in. Understand?”). Equally, macro models trying to capture what this means presume everything returns to mean and vast net trade deficits are absorbed by the system. If they don’t, the model breaks; here, the system does.
One may disagree with Yanis Varoufakis on many things, but he knows his economic history – which markets don’t. He begins a recent must-read (‘Will Liberation Day transform the world? The Nixon Shock set a radical precedent’) thus:
“My philosophy, Mr President, is that all foreigners are out to screw us and it’s our job to screw them first.” With these words, the US Treasury Secretary convinced the President to deliver a colossal shock to the global economy. In the words of one of the President’s men, the objective was to trigger “a controlled disintegration of the world economy”.
No, those words were not spoken by members of President Trump’s team in advance of their “Liberation Day” tariff splurge. While the “foreigners are out to screw us” certainly has a Trumpian ring, it was uttered in the summer of 1971 by then Treasury Secretary John Connally, who succeeded in convincing his President to unleash the infamous Nixon Shock a couple of days later."
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And the banksters (who have unlimited funds to do so) manipulated the markets today to put fear in the hearts of everyone.
Why? Because the banking/wallst cartel free money creation machine will be ending and their power will drain away with it.
"the implications are so large that markets don’t fully grasp them, or don’t want to. It’s one thing for them to have been forced to recognize that guns now matter as well as butter, but it’s another to realize life is now about gunship diplomacy (“We have 11 aircraft carriers: we get to say which currency commodities are priced in. Understand?”). Equally, macro models trying to capture what this means presume everything returns to mean and vast net trade deficits are absorbed by the system. If they don’t, the model breaks; here, the system does.
One may disagree with Yanis Varoufakis on many things, but he knows his economic history – which markets don’t. He begins a recent must-read (‘Will Liberation Day transform the world? The Nixon Shock set a radical precedent’) thus:
“My philosophy, Mr President, is that all foreigners are out to screw us and it’s our job to screw them first.” With these words, the US Treasury Secretary convinced the President to deliver a colossal shock to the global economy. In the words of one of the President’s men, the objective was to trigger “a controlled disintegration of the world economy”.
No, those words were not spoken by members of President Trump’s team in advance of their “Liberation Day” tariff splurge. While the “foreigners are out to screw us” certainly has a Trumpian ring, it was uttered in the summer of 1971 by then Treasury Secretary John Connally, who succeeded in convincing his President to unleash the infamous Nixon Shock a couple of days later."
--------------------------------------------------
And the banksters (who have unlimited funds to do so) manipulated the markets today to put fear in the hearts of everyone.
Why? Because the banking/wallst cartel free money creation machine will be ending and their power will drain away with it.
and the deep state trying to hold its power