The latest announcement by President Trump via Truth Social [SEE HERE] should not come as a surprise to anyone here.

As the economic impact of MAGAnomics starts to sink-in to the global psyche, once again it is predictable that China and the EU will use their central banking system in a defensive posture against President Trump’s economic, trade and tariff policies.  As a direct result, the value of the dollar increases, and as we noted before, “Exports from the USA ultimately cost more because the dollar is stronger against EU and Asia currencies. However, a stronger dollar is an offset to BRICS leverage and allows Trump to play economic chess.”

That’s the background for this:

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President Trump knows how to leverage U.S. market access as part of the economic security program for the entire country.  President Trump is the only person who can do this.   If a nation wants to align with an alternative trade currency, President Trump will tariff their products at 100%, and/or shut them out of the USA market completely.

MAGAnomics Simplified: Everyone who is a pragmatic critical thinker knows that China will (a) subsidize their targeted industries; then (b) devalue their currency to lower the impact of exports to the USA. Beijing controls the banks, and they did this before. As a result, the dollar value increases and imports cost less.

The Chinese imports then enter the USA at a lower price consistent with their cost estimate as a tariff offset. China takes in a lower price but retains access. That’s just how it works. The importers pay the tariff with a lowered price and a higher valued dollar. Essentially statis for the time being.

Then…..

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The picture of the seating assignments speaks so loudly you don’t need to hear a word they are saying.

Canadian Prime Minister Justin Trudeau is sandwiched between Secretary of Commerce nominee Howard Lutnick and the man who holds the hammer for Canada’s economic future, President-Elect Donald J Trump.

Also pictured to President Trump’s left is his pick for national security adviser, Mike Waltz, and his wife Julia Nesheiwat, the sister of Surgeon General nominee Janette Nesheiwat. Also included in the photo is President Trump’s interior secretary pick, Doug Burgum.  Suffice to say, the economic half of the Trump Doctrine purposefully in place.

Corporate media are focusing on President Trump’s prior statements about imposing tariffs on Canada as the narrative to go with the hastily assembled visit by Justin from Canada….

ABC – […] The meeting came after Trump threatened sweeping 25% tariffs on goods from Mexico and Canada until both countries stop what he claims is a flow of drugs and illegal immigrants into the United States.

Trudeau told reporters earlier this week after he and Trump spoke on the phone following the tariff threat that they had a “good call.” He added that he looks forward to “lots of great conversations” with Trump. (more)

According to narrative media, stenographers for the status quo, the focus is on President Trump potentially seeking an early renegotiation of the USMCA trade agreement which is scheduled for a revisit in 2026.

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President Donald Trump has announced Scott Bessent as nominee for U.S. Treasury Secretary. The Secretary of Treasury implements tax policy, manages the nation’s debt, leads financial regulators, monitors and executes sanctions and conducts economic diplomacy. While the U.S. trade representative takes the lead on tariffs, the Treasury secretary typically plays a key role advising on that issue as well.

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Bessent (62) is a hedge Fund manager, the founder of investment firm Key Square Capital Management.  Despite supporting President Trump early, he has faced criticism for working as the CIO at George Soros’s Soros Fund Management from 2011 to 2015. He lives in Charleston, S.C.

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Just dropping some background information to help people make sense of things in the nomination world of businessman and President-Elect Donald Trump.

FINANCIAL TIMES – […] Trump Media and Technology Group, which operates Truth Social, is close to an all-stock acquisition of Bakkt, the Financial Times reported on Monday, citing two people with knowledge of the talks.

Shares of Bakkt, backed by NYSE-owner Intercontinental Exchange, skyrocketed more than 160% and were halted multiple times due to volatility. Trump Media shares ended the day up 16.7%.

[…] Trump Media and Bakkt ‒ whose former CEO, Kelly Loeffler, is now co-chair of Trump’s inauguration committee and married to Intercontinental Exchange CEO Jeffrey Sprecher ‒ did not immediately respond to requests for comment from USA TODAY. Intercontinental Exchange declined to comment.

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The interview below is a little complicated at first on the issues of economics. If you are not an economic wonk, or deep research into the theories and realities of how finance and human activity can transact in the world of economics, it might be a little complicated. However, if you are a person who enjoys a deep discussion on the intricacies of the battle between economic freedom -vs- socialism, then this is for you.

Lex Fridman does an excellent job of asking a short ‘big picture’ question, then listening to a lengthy response and answer. The interview is very substantive and as the interview progresses beyond the economic issues, Argentina President Javier Milei pulls back to give perspective on the real battle within the financial ‘west’.

The first hour is wonky, complex and full of answers about what a very intelligent President Milei did to correct the course in Argentina. The second hour pulls back to the broader landscape of freedom. Find some quiet time to enjoy and absorb. WATCH:

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Chapters:
0:00 – Introduction
3:27 – Economic freedom
8:52 – Anarcho-capitalism
18:45 – Presidency and reforms

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The co-chair of the new Department of Government Efficiency (DOGE), Vivek Ramaswamy, appears with Maria Bartiromo to discuss the goals and intentions of the DOGE effort.

Ms Bartiromo continues to pull the conversation back to the need for Ramaswamy and Musk to go to the legislative branch for permission to reduce government waste.  Over and over again, Ms Bartiromo frames this discussion around: DOGE must go to congress for permission.

Note to Ms. Bartiromo.  DOGE is an initiative of the Executive Branch; specifically, an authorized agency with authorized officials carrying the plenary and absolute power of the Presidency.  The President is the Executive.  The Dept of Govt Efficiency, along with all of the other institutions and offices mentioned by Bartiromo, are subsidiaries within the Executive Branch.

This is the Executive Branch, a plenary power, reducing the size of the Executive Branch and eliminating waste within the Executive Branch.  There is no part of this effort that needs permission, authorization or approval from the Legislative Branch.  That entire line of thinking is structurally flawed.  WATCH:

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President Trump does not have to go to congress to do something entirely within the Executive Branch.

When I watch Ms Bartiromo frame these arguments on completely fraudulent constitutional premises’, I begin to question the motives of Ms Bartiromo.  There’s something else happening here with Bartiromo and her steering “congress, congress, congress” narrative.  I’m not wrong.

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There is no reason to believe President Trump will ask Jerome Powell to resign; however, with trillions at stake and the power system (bankers) generally in charge of the government, the media has been manufacturing and pushing a hostile narrative about it for quite some time.

Powell’s term on the Fed Board of Governors ends in mid-2026. The president nominates, and the Senate confirms, the FED Board’s chair and two vice chairs for four-year terms. President Trump picked Jerome Powell, then a governor, to be chair, succeeding Janet Yellen when her term was up in 2018. Powell’s term as chair extends to February 2022.

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At the news conference announcing the Fed’s decision to lower interest rates by a quarter point Powell was questioned if he would leave his post if asked by Trump, he answered simply, “No.”

Asked if the president could fire or demote him or other Fed governors, Powell simply replied: “Not permitted under the law.”

The Follow up is below.

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President Donald Trump sits down with Bloomberg Editor-In-Chief John Micklethwait for an extended interview. The interview is in partnership with the Economic Club of Chicago and is structurally President Trump facing down the globalists who sell Wall Street policy.

The interview was at times very combative as the interviewer, John Micklethwait, pushes a Wall Street ideology in alignment with the World Economic Forum. However, President Trump has already proven that his economic policies work.

President Trump stared down every WEF talking point and totally destroyed it.  This interview is brilliant and a perfect juxtaposition for Economic Nationalism vs Multinational Globalism.  President Trump tore the talking points apart.  AWESOME! 

Notice in the conversation about Tariffs, not a single word made by the “economists” on the value of the dollar and how pertinent it is in the equation.

When China and the EU devalue their currency to offset the impact of tariffs, the dollar value increases. This means it costs less dollars to import goods that come to the USA at a lower price (due to subsidies). Essentially, the diminished tariff impact is doubled.

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Go ahead and make some money.  Elevator Speech: “MAGAnomics is essentially ‘inverse BRICS.'”

Everyone who is a pragmatic critical thinker knows that China will: subsidize their targeted sectors and devalue their currency to lower the tariff impact of exports to the USA. Beijing controls the banks, and they did this before.

As a result, the dollar value increases and imports cost less.

The Chinese imports then enter the USA at a lower price consistent with Beijing’s cost estimate as a tariff offset.  Chinese actuaries are really good at this. China takes in a lower price but retains access to the USA market. That’s just how it works.  The importers pay the tariff with a lowered price with a higher valued dollar. Essentially stasis is achieved in a stand-off.

Then…..

EU industrial products to Chinese manufacturing plants start to contract due to China’s aggressive cost cutting initiatives. The EU gets angry about the impact to their economy and looks for alternatives.  The EU then follows the same path as China and devalues their central bank currency; further pressuring the dollar to an upward price.

Exports to the EU are now more expensive, but imports from the EU to the USA are now cheaper. Again, the EU goal is stasis.

Both scenarios create cheaper USA imports despite the Trump tariffs. However, on the EU side President Trump then ends the Marshal plan and executes a program of “tariff reciprocity” against the EU.  More frustration and gritted teeth by Brussels.

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Mike Rowe brought Victor Davis Hanson onto his podcast for an interview to discuss Class Warfare as contrast against the 2024 election stakes. The impetus for the interview was an article written by VDH a few months ago about the shift in the American electorate – SEE HERE.

Within the interview VDH walks through a summary of how a modern muscular tech industry replaced Mainstreet on the financial side of financial economics and American wealth.  Essentially, how a small group of tech companies replaced the blue chip titans and industrialists on the global wealth scale.

As 8 billion people started being able to purchase the goods and services of a small American group of entrepreneurs, all focused heavily inside the tech and finance sector, the people who owned wealth shifted dramatically.  Decades later, against the backdrop of globalism, the issue surfaces as the industrialists (Main Street corps) offshored their manufacturing, while the tech industrialists (Muscular Wall Street) started to be the wealthiest people in the USA as a result of selling their tech products to the world.

Within the discussion, the academically disposed VDH points out empirical data that bolsters his theories and analysis.  Rowe is in general agreement as they both discuss the granular consequences.  However, there is one fascinating part (prompted below) where VDH accurately identifies conservative economic hero Milton Friedman as one of the early globalist villains.

VDH is correct when he says that Friedman was a rabid open borders advocate, who had no issue with lowered wages for U.S. workers and embraced the global system of manufacturing which led to a destroyed U.S industrial base creating the Rust Belt.  Few people on the conservative side of politics will ever admit how Milton Friedman was the original Bush-class economist.  It’s good to see VDH set the record straight.  WATCH:

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Keep in mind, Milton Friedman was vociferously against tariffs of any kind.  Friedman believed once the entire world was connected, all prices and economies would equalize.  The pain felt within the American economy was simply something that had to be endured until American wealth was distributed and the entire world was balanced.

What follows below was my review of what would happen with Donald Trump policies put into place.  This is very deep and in the weeds. This was originally written in December of 2016.

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