WHAT IS “THE BIG” RISK?
What I fail to see in the market space – is the reliance that President Donald Trump does what he said he would do. If the opposition derails that action – President Donald Trump does not STOP – he does not derail – he does not relent – he goes around over under and finds a way to the other side. On every single item.
The biggest item is not – for investors – Health Care and the Wall or the Infrastructure of every TAX Reform – all items in progress and Congress IS doing far more deal making on each item than the public has a clue about.
In the end the Congress DOES represent American’s and they ARE trying to get it right. Public policy is not easy. Never simple. It takes time debate and a process. It is messy democracy but it is always the best system model.
Donald Trump is working on ECONOMICS 101 as his main deal. So lets look at the simplification as I always try and summarize for my world wide readership which is growing so fast ( thanks for sharing this blog on walls boards tweets and your lists ) I so appreciate that – as the BLOG is free including when you subscribe by registration.
So lets look at the ECONOMICS that will effect investors:
- Trade world wide as we know it – is operating within a post war model in which the USA economy drove up national trade globally.
- The model created a trade imbalance through decade old trade agreements from a different time and age.
- The deals created economic frame works where the USA bought more than it sold. Oceans of profits flew into off shore nations while the USA was going BROKE but safety and slowly.
- Donald Trump – not amused by antique trade arrangements in the modern age – which are so unfair to the American People – is seeking OPEN EQUAL ACCESS TO MARKETS to balance trade so we sell as much as we buy and come up even or with our own surplus so we profit rather than go broke. You can’t buy more than you sell and end up outside bankruptcy as a family a business or a nation. You have to make ends meet. America has to having helped so many nations now be fairly helped in return. Competitive thinking clouds what cooperative thinking could resolve – insanity versus sanity as my prior blog defined as organizational Mal function we humans perpetuate when we have new box top rules available.
- Donald Trump “IS” going to stop the blood bath in trade – which is unfair – not sustainable economically – and truly dysfunctional. The result is that goods sold the USA at a fraction of their real value – subsidized by nations – are going to REBALANCE into fair proper pricing. American Goods are going to be open access to trading partners who are fair and to unfair partners their goods are going to be so high in cost that their unfair trading practices will cost them their own prosperity in a short time span.
Said another way – the risk to investors – is the trading regime since World War II is going to reform now – modernize – and trade wars are going to occur. American is going to refocus on buying American as a economic plan to sustain the American way of life.
Other nations who have profited in unfair trade practices will now have to open markets and play fair – or their trade accounts will crash.
Now the risk of trade war is as follows based on past history:
- Trade war is what follows consolidations of wealth to the few elites in economic class warfare ( economic systemics ) against the many. The result is following melt down – historically as trade wars gain intensity SUPER CRASH.
- Super Crash has always been followed ( economically ) by world war to rebalance financial accounts. Only never with the weapons we all hold today. So the outcome is unknown.
- The end of one era and the start of the new era of economics – say THE NEW WORLD ORDER coming to an end now – following World War II – a little over sixty years back – with Korea and Vietnam in between and the Gulf – typically is outcome to the next world war to rebalance accounts.
The present Post World War II trade cycle of imbalances is no longer economically sustainable. Without Reform the system Super Crashes.
The reform if competitive economics – trade wars – repeats history with SUPER CRASH and World War. Never has varied in 5000 years.
Are we awake enough?
Are we intelligent enough?
Are we sane enough?
To cooperate and collaborate into a NEW SYSTEM MODEL without SUPER CRASH and World War III?
As World War III started digitally with the economic attack in 2008 and has been on going with global digital invasions, the sanity of cooperation has not risen up as yet. The insanity noose seems to be tightening before our vary eyes.
Can we pull back from the war machines of the world?
Can we once and for all COOPERATE ( sanity ) versus compete ( insanity )?
Who wins ? Insanity again?
Or sanity for the first time for all of us digitally connected?
The OLD WORLD ORDER is broken and must now be fixed.
The FIX may trigger the historic outcome.
For this reason we have published for years the call to world leadership to initiate a G 100 Global Economic Constitutional Convention – a three year economist leading politics where for the first time the outcome is economics for all of us not politics as usual which is insane. Cooperation is the HOPE AND PROMISE of humanity.
Competition is the insanity of our punishing diversity versus celebrating it ( sanity ).
I guess we all have to decide?
What if the leadership calls up a world war and none of us elect to march to that drummer – we all refuse – military leadership included?
I vote for sanity.
Berny Dohrmann – THE ONE INVESTOR RISK the OLD WORLD ORDER IS ABOUT TO COME TO AN END – CAN YOU FEEL IT TOO?