Thursday, January 19, 2017

The US Dollar Strengthens, While Its Foundation Continues to Rot

One thing that we have unexpectedly seen since Donald Trump became the President-elect (very soon to be President) is a strong US dollar. This comes despite the fact that he has stated he is going to expand infrastructure spending within the United States in a massive way. 

The reasoning for this of course is his aggressive stance against globalization and the damage that it has caused to the middle class American. The fact is, jobs have been outsourced like never before seen in history, and this has eaten away at the great wealth America once possessed.

This trend of anti-globalization is occurring around the world, but the stance that Donald Trump has taken is unlike any other and is sparking a renewed confidence within the United States manufacturing and small business sectors.

Already we have seen numerous large, publicly traded companies state that they plan on increasing spending and capacity within the United States. The side effect of this is of course a surge in high quality jobs, something the country and the West is in desperate need of.

The FED on the other hand does not like this, as a strong dollar makes it that much harder for the monstrous US debt that has been accumulated by past governments to be paid off.

This debt has ballooned out of control and will hit the $20 Trillion dollar mark, shortly after Donald Trump takes office. Essentially, there is nothing that can be done when discussing a number as large as this.

Therefore, you have to ask yourself this, how will they ever pay it off? The answer is simple. They won't. The FED knows this, Donald Trump knows this and the rest of the World knows this, even if no one wants to openly admit it. 

The reality is, we live in a fantasy land that is controlled by fiat money and the confidence that people artificially have in it. The charade will continue on as long as the mass public wishes to partake in it, or as long as the elites want to keep it going. It only takes one of the two parties to bring it all down.

To me, this is just one of the threats that I see Trump facing in his first term. Will he be able to hold off the global elites from pulling the rug out from under this system and blaming it all on him? Perhaps, or perhaps not. 

The question is, are the elites ready for the ramifications that come along with doing that? We shall see.