Donald Trump and the Decline of the Free Market Economy

Part 3: The End of the US Economy: Death by Stupidity

The United States is moving towards economic collapse. Those who can are escaping, while those who remain are moving towards total failure

• Its citizens are being forced into penury.

• Its businesses must either escape the US altogether or face bankruptcy.

• Its banks will require trillions of dollars on bailouts, which Government does not have.

• The economy will move into a downward spiral as institutions and both domestic and foreign policy will demand higher interest rates on US government bonds which in turn will require even more bonds, which in turn will lead to demands for even higher interest rates.

The only solution lies in a U-turn in US economic policy, which will show that the US Government is serious about reversing the current downward trend:

• Increased taxes on the wealthy

• Reduced Government expenditures

Regrettably the Trump administration is moving in the opposite direction:

• Tax reduction for the wealthy

• Increased Government expenditures.

The new US policy presented by Secretary of Treasury Scott Bessent boggles the mind. It is based on forcing America’s trading partners to revalue their local currencies against the US Dollar, as they did under the Smithsonian Agreements. However, what worked in 1973 will fail 53 years later.

• Devaluing the US dollar will make investments in the US less attractive:

  • Who will buy US long term securities paying 5% when at the end of the day the dollar has fallen 10% against the Euro, British Pound, Japanese Yen, Chinese RMB.

  • Better to reduce the risk by selling the US Dollar now.

• The smart money is already taking action

  • American billionaires selling their US assets. Think

    • Berkshire Hathaway

    • Amazon

  • Foreign corporations closing their US branches

    • Volkswagen

    • Toyota

    • Honda

The US economy is moving towards collapse and it appears there is no way to reverse the downward trend.