"The mind is a compact, multiply connected thought mass with internal connections of the most intimate kind. It grows continuously as new thought masses enter it, and this is the means by which it continues to develop."

Bernhard Riemann On Psychology and Metaphysics ca. 1860

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Tuesday, August 20, 2019

Trump's Looming Economic Dilemma

While it is the case that Trump understands you do need steel, infrastructure and energy to build hotels and gambling casinos, what he doesn't get about the economy will destroy us in the end. The problem is that without replacing the astronomical level of global bad debt with national banking agreements its collapse is inevitable. 

The economy is not a zero sum game wherein each must scramble for a slice of a fixed pie. New technologies redefine resources. If Trump understood that he would not only be pursuing expanding the space program, he would announce a massive Manhattan style research program to achieve nuclear fusion as well as a multi trillion dollar infrastructure national investment. But that cannot be done without an orderly end to the speculative bubble known as derivative securities that the Federal Reserve has been dutifully propping up like some latter day parody of Sisyphus.

A return to Glass-Steagall is the first step. Ending the trade war scenario with joint agreements among the main global powers for real economic development as opposed to geopolitics is the second step.

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