The entire economic world is unilaterally focused on President Trump and the U.S. delegation in Davos, Switzerland at the World Economic Forum. CTH has stated for several years that MAGAnomics, the U.S. economic outlook, would be the primary generational change evident from a successful election of Donald Trump. What’s happening at Davos is simply visible confirmation therein.
Boil all international and geopolitical issues down to their common denominator and everything, E.V.E.R.Y.T.H.I.N.G., every issue, every discussion, every person, every policy, every position, everything -all of it- circles around economics. Nothing matters except the underlying economics of every single issue. Power or weakness, famine or war, peace or conflict, master or servant, culture or crisis, growth or collapse, the entirety of everything -including the foundation of freedom- centers around the economics.
There are trillions at stake.
Yesterday we saw U.S. Commerce Secretary Wilbur Ross commanding around 80% of panelist discussion, and factually 100% of all questions and attention from the Davos audience. Every single question was for Wilburine. Team U.S.A. is the epicenter of the economic universe and Secretary Ross was well prepared for the severity of attention.
Today, the same theme continues as Treasury Secretary Steven Mnuchin engages with a similar panel discussion.
The question about the “strong or weak dollar”, and Secretary Mnuchin’s response therein, is directly because President Trump and Steven Mnuchin understand that dollar valuations can be used in leveraging successful geopolitical outcomes.
If the dollar is strategically lowered by policy, the U.S. can suck money directly out of China (or any large economic multinational) because their vaults hold dollars as an outcome of trade surpluses with the U.S. The globalists are scared shitless that POTUS Trump and Secretary Mnuchin will start crushing their global goals by utilizing this inherent trade leverage.
There is a potential for POTUS Trump and Secretary Mnuchin to weaponize the U.S. reserve currency if they don’t get the deals they want. That looming threat exists and is an existential threat to the entire construct and worldview of ideological globalists.
The globalists, multinational corporations and banks, and those who gain by exporting U.S. economic wealth, always want a high dollar valuation. They spend billions on lobbying efforts because they are used to controlling U.S. policy by influencing DC politicians; and using Wall Street finance constructs to purchase influence on U.S. monetary policy.
When the panel begins discussing “interest rates” (the cost of borrowing), at exactly the 24:37 moment I personally enjoyed lighting a cigar because CTH has been discussing the disconnect between Main Street (GDP growth, wages, etc.) and Wall Street monetary policy, via interest rates, for years.
The panel ‘smart set‘ still are struggling to understand how rising interest rates in the U.S. will do nothing to curb economic growth – because they are entirely stuck in an economic outlook framed from the past 30 years of Wall Street influence.
Interest rates can rise to 4%, perhaps higher, and there will be no negative outcome visible on Main Street; because simultaneous to this monetary rate increase the GDP growth rate is going to match it, or exceed it, point-for-point.
MAGAnomics is centered around inherent investment being determined by where investors will get the best return. President Trump has made that place RIGHT HERE.
The U.S. Main Street economic engine, which was dormant and unattended for decades, is now alive and traveling faster than fiscal policy. There is an inherent lag that will take a few years before the MAGA system balances again. In this interim period, exactly as the panelist is stating, wage inflation will be driving up average wealth creation inside the U.S.
This is the exact reverse dynamic of the prior 20 years where average middle class wealth was dropping. This is MAGAnomics baby, and the elites don’t understand it….
Like I keep saying, throw dem ju-ju bones out the window, squeeze the kids up tight, enjoy yourselves and hang on !!