While we’ve all been hoping that President-Elect Trump will fix the financial disaster we find ourselves nearing, no one can deny that the man is inheriting a mess. During the Obama administration, our national debt climbed to heights never seen before and the President kicked the can squarely into Trump’s playing field.
If the expected economic disaster occurs, it isn’t going to be because of anything Donald Trump has done wrong. The blame can be laid squarely on previous administrations. However, when we’re dealing with the economic collapse of America, that will be of little solace. If you aren’t prepared for an entirely different way of life, go here to learn what you need to be doing.
Do you want to prep but you’re not sure how to get started?
We can help. Go on over to Preppers University and check out our Prepping Intensive course. And if you’ve been at this for a while and want to take your preparedness to the next level, check out our 6-Week Advanced Prepping Intensive.Which Prepping Intensive Course Is Right For Me?
Trump About to Preside Over New Global Financial Crisis: “Not His Fault, Merely His Misfortune”
by Mac Slavo of SHTFplan
The warning signs have been up every mile for a long stretch now. The build up of pressure, and the creaking fault lines have been evident. The monetary policy has long been triggering what may prove to be an inevitable collapse…
And it may have been planned for the Donald Trump administration.
via Jim Rickards:
A new global financial panic will be one legacy of the Trump administration. It won’t be Trump’s fault, merely his misfortune.[…]
Since 2008, the largest banks in the world are larger in terms of gross assets, share of total deposits, and notional value of derivatives. Everything that was too-big-to-fail in 2008 is bigger and exponentially more dangerous today.[…]
The 2008 crisis was truncated with tens of trillions of dollars of currency swaps, money printing, and rate cuts coordinated by central banks around the world. The next crisis will be beyond the scope of central banks to contain because they have failed to normalise either interest rates or their balance sheets since 2008. Central banks will be unable to pull another rabbit out of the hat; they are out of rabbits.
In the next crisis, liquidity will come from the IMF, which has the only clean balance sheet remaining. The IMF will print the equivalent of $10 trillion in world money called special drawing rights. China and Russia will acquiesce in this liquidity injection provided it hastens the demise of the dollar as the benchmark global reserve currency.
Trump himself has long been wary of political meddling by the Federal Reserve, who could have used a rate hike or other measure to unleash bad news that could have hurt, or alternately helped, his chances of winning. He accused the Fed of waiting to burst the bubble so that it didn’t happen during Obama’s watch.
In the end, that didn’t happen, but the hot potato of the next financial crisis may still be dumped in Trump’s lap. It may figure into why he has been appointing so many Wall Street cronies in his administration… but it probably won’t mean that America gets to avert the crisis.
There is more potential in how to deal with the crisis after it happens. As Rickards explains:
Can Trump avoid this fate? Possibly.
Descaling finance means reinstating the Glass-Steagall and pre-Big Bang separation of deposit taking and securities underwriting. It means breaking up the big banks… Derivatives should be banned except for exchange-traded futures tied to specific assets used for commercial hedging. It’s time to close the casino.
Will Trump pursue these policies? It’s unlikely. Bank lobbyists rule Washington from the commanding heights; draining the swamp won’t change that.
If the bankers are getting close to Trump and taking over his cabinet and advisors, it is because they wish to benefit from the solution to economic catastrophe.
They have plans.