Let's Talk on Issues of Economics/Finance/Politics! What's happening?

Trump is currently leading Biden by some 9% as of today (April 30), according to a new CNN poll. If the election were held today, Trump would win easily (assuming no fraud or election ballot multiplication by the forces which back Biden). So what does the Donald desire for our economy (as of today's WSJ)? He wants to devalue our dollar so as to advance exports and promote more economic growth. Our current trade deficit is over $1 trillion. Amazing! Would this work? I say absolutely not.

A devaluation of our dollar would advance spending, inflation, and force the markets to increase interest rates. None of this would be good for our consumer economy. I think Mr. Trump is barking up the wrong tree on issues of finance/economics. But the policies of Powell may also be detrimental for our economy. As of today, house prices are much beyond the affordability of the main stream buyers. Current interest rates produce a 30 year mortgage rate of 7.5% or more. This will bring chaos to our housing market (eventually). 

The policies in economics are mostly dire as America's DEBT is now much beyond repaying. This awareness will force Powell to keep interest rates high (relatively) and this means real PAIN for our housing markets (also our commercial real estate markets). What we need is a cleansing of debt from all our markets but this is unlikely under our current Keynesian regime. We must wait for a real crash in these markets before anything positive can be done for our children and grand children.

So what is happening over in Argentina and Zimbabwe? Both these nations are experimenting with new currencies to see if they can solve their economic problems. Argentina wants to issue a $20,000 Peso (to follow later with a $50,000 Peso). Will this work for Argentina? I don't think so. Sound money must be restored if Argentina is going to survive. This is unlikely to happen as Milei (the new leader) does not understand money issues IMO. A sound money solution would require that the Peso be tied to gold and then made convertible into gold (at the option of the public). This was the only solution which worked for America. The key concept is 'convertibility'!

Prior to convertibility, however, a new currency must be DEFINED in terms of something tangible (say gold or silver). Once a currency is defined, then the government can offer this option of 'convertibility' to the public (based upon this definition). America, defined our dollar (originally) as 371.25 grains of silver. This then allowed our banking system to exchange (convert) a dollar into silver at this defined ratio. Convertibility was a function of our dollar policy until FDR days when this option was removed. Since 1934, America's public has not had any option to 'convert' a dollar into silver and/or gold. Our dollar is now a mere item of 'faith' (meaningless and worthless)!

Over in Zimbabwe, they are trying to create a new ZIG currency which they claim is tied to gold. In reality, it is NOT convertible into gold by the public. This means that over issuance of this currency will happen in time (it always does). I say that within ONE year, this Zig currency will be trash. Again, the central authorities do not understand sound money. A centralized currency issued by a Central Bank never works long term. Money gets multiplied as loans are made and this eventually leads to inflation and then hyper-inflation. Our central planners never seem to learn. What's needed is a decentralized currency system with full convertibility into gold (at the option of the public). This, however, will never be promoted by a CENTRAL BANK (or by any nation on planet Earth).

What we really need is to abolish these Central Banks and then decentralize the entire economic system. My view is that we need to rid the markets of all these phony/imaginary/fake currencies and promote a NEW system which is based upon direct production/consumption where our Smart Phone Apps get used to distribute goods and services. All these fake digital currencies are anathema to sound economic policy (in today's world of the internet). Money must be eliminated from all markets and then we need to decentralize the system so that direct consumption is balanced with production. This could be done via our Smart Phone Apps and with a new education of the public on issues of economics/philosophy.

Our current system is totally corrupt (bankrupt) and it is impossible to resurrect the current corrupt model (which many call Capitalism/Keynesianism). This model has run its course (now some 90 years) and we need to start thinking about our children and grand children who will inherit the system in the next few  years. Continuing with a bankrupt system that only gets worse over time is an INSANE mindset. We need to think anew and promote a system which is valid for our children and grand children. The Baby Boom generation has corrupted the current system (and it is now BEYOND repair). Think on these things as you watch Trump and Biden fight over policies that ONLY make events more DIRE for everyone.

The election of 2024 (now less than 200 days) will bring the world chaos and breakdown. That is my viewpoint as our finance system is totally broken. Witness the numbers here: www.usdebtclock.org. Nothing can save this system as the MODEL has run its course. Our debt based system started in 1934 (under this model called Keynesianism) and it is now over 90 years old. The debt is our problem and everyone knew (back in 1934) that a day of reckoning would arrive. That day is NOW! A better day is coming, but it likely will not be in 2024 (or after)!

Trump/Biden/Kennedy will likely fight it out during the coming election of 2024. The language could become ugly when we get to October and early November. The election is November 5, 2024. Can anyone SAVE America given our current situation? Is MAGA even possible?

Have a great day! I am: Donald B. Swenson, Ecnomist/Philosopher, http://kingdomecon.wordpress.com. Also, donaldswenson.blogspot.com.