Bill Bonner – Bill Bonner’s Diary (United States) –
BALTIMORE – Bloomberg reports that a panel of Nobel Prize-winning economists has given Donald Trump’s economic policies the thumbs down.
Professor and former World Bank chief economist Joseph Stiglitz summed up the views of the panel, which “included his fellow Columbia University professor Edmund Phelps and Yale University’s Robert Shiller”:
There is a broad consensus that the kind of policies that our president-elect has proposed are among the polices that will not work.
Some of the guff coming out in the press is insidious… and warns of an impending disaster. The rest is merely puerile or idiotic.
The hardest thing for us is to know when to laugh. A “broad consensus” of economists is always a rib buster.
Sticking with trivial amusements… CNN earnestly reported a comment by Valerie Jarrett, a senior adviser to President Obama.
She gave what was called “advice” to Trump’s son-in-law Jared Kushner, who will have a gig similar to hers in the president-elect’s administration.
“Listen to the American people,” Jarrett said on CNN’s New Day. “Make sure you stay in touch with them. Make sure you have your pulse on them.”
She must mean he should check their pulses, if that were possible – which it isn’t.
Listening to the American people isn’t possible, either. There are 320 million of them. Each has his own point of view – most of them moronic.
Another goofy story is that the Russians “hacked” the U.S. election.
Republican Senator John McCain even says it was “an act of war.” But if that were so, the U.S. has committed acts of war against dozens of different countries over the last 50… 100… 150 years!
Stephen Kinzer, a senior fellow at Brown University, wrote in The Boston Globe:
One of our first operations to shape the outcome of a foreign election came in Cuba. After the United States helped Cuban rebels overthrow Spanish rule in 1898, we organized a presidential election, recruited a pro-American candidate, and forbade others to run against him. Two years later, after the United States annexed Hawaii, we established an electoral system that denied suffrage to most native Hawaiians, assuring that only pro-American candidates would be elected to public office.
Ever since, says Mr. Kinzer, the CIA and other clandestine U.S. agencies have been routinely “hacking” elections.
But Kinzer doesn’t go back far enough or deep enough into the sordid history of the U.S.’s meddling in other people’s business.
In 1860, following honest elections and legal legislative action, 11 southern states voted to secede from the United States of America. It invaded them, killed an estimated 400,000 of their citizens, and put their leaders in jail.
But let’s allow bygones to be bygones. Let’s look ahead. Our hypothesis is that the economic policies of the Trump team – whatever they turn out to be – will turn out no better than the attack on Fort Sumter. They will not create a healthy, growing economy.
That is the point we’ve been reaching for: There are no policies that will successfully eliminate the distortions and grotesqueries caused by the fake-money system, with its fake interest rates, fake wealth, and fake savings.
Some things need to be corrected… not denied and delayed.
And that is the very thing the Trump team and its Deep State allies will fight hardest to prevent: a correction.
King of Debt
From an economic standpoint, there are three major components of the Trump bunch.
First, there are the generals, who will fight to the death to defend the $1 trillion military-industrial-security complex in all its glory.
Second, there are the Goldman boys, who will pimp for Wall Street and its privileges.
Third, there is the “king of debt” himself, Donald Trump, who seems to have some good instincts, and some bad ones… but is not about to sit on his hands while the U.S. Empire of Debt collapses.
Debt, demographics, fake money, and zombie degeneration are all working against the U.S. economy. As we reported on Monday, the energy is draining out… helped by millions of leaks caused by policymakers.
The elite have not only failed, they have also created a dysfunctional, parasite-ridden, wealth-destroying economy.
“Better deals” won’t help. We are well past the point of declining marginal utility of the government and its policies.
The economists are right.