The noose is singing tight.
Just ask this pro-Trump shit rag:
"The FBI’s arrest of Roger Stone flows from the same source as the indictments of Michael Cohen and Paul Manafort and the federal investigation into payoffs of a porn star and a nude model. All of them are due to President Trump’s penchant for surrounding himself with sleazy people."
“We reject the ideology of globalism” in favor of the “ideology of patriotism.”
- Trump at United Nations, September 25th, 2018
Trump's understanding of Globalization is that of a four year old:
"Mission Accomplished"
Globalization would have imploded with extreme dislocation in 2008 without the unprecedented actions of global central banks to stave off deflation. They had learned via Japan's constant battle with deflation since 1990 that printing money is the secret to effortless wealth. It's telling that even now the only major central bank NOT attempting to normalize policy is the BOJ. They've learned the hard way that normalization is not possible. The ECB of course are not so much normalizing as they are merely curtailing monetary expansion for the first time since 2014. The Fed alone was hubristic enough to believe the Trumptopian bullshit about the greatest 'Conomy ever. They are now learning the hard way, having already contradicted themselves on rate hikes. Now, they are contradicting themselves on balance sheet expansion. Recall, back in December, Powell said that balance sheet expansion is on "auto-pilot". Then in January he said that balance sheet reduction would be "substantial". Now apparently it will be ending much sooner than anticipated.
All it took was a -20% crash in the S&P 500:
Unfortunately, what they didn't learn over the past ten years is the only thing that staves off deflation is balance sheet EXPANSION. Merely curtailing balance sheet reduction will not be enough to offset the burgeoning deflationary forces.
This chart illustrates the policy error that was made.
They ALL believed that a tax cut for the rich would offset higher interest rates for everyone else on the planet. In the end of course it was deflationary, as it raised rates at the end of the debt cycle. The bond vigilantes killed Trumptopia:
"A bond vigilante is a bond market investor who protests monetary or fiscal policies they consider inflationary by selling bonds, thus increasing yields."
This chart illustrates the policy error that was made.
They ALL believed that a tax cut for the rich would offset higher interest rates for everyone else on the planet. In the end of course it was deflationary, as it raised rates at the end of the debt cycle. The bond vigilantes killed Trumptopia:
"A bond vigilante is a bond market investor who protests monetary or fiscal policies they consider inflationary by selling bonds, thus increasing yields."
Getting back to the point about Trump imploding Globalization, not only did his tax cut embolden a reversal in decade-long monetary policy, but his trade war has also succeeded in imploding corporate profit:
This should come as no surprise for anyone with an IQ greater than five, because China is the world's second largest economy, and it's the world's fastest growing large economy. The Chinese consumer IS the marginal consumer, along with India.
What this all means is that global policy-makers are now WAY behind the curve with addressing the impending tidal wave of deflation now building.
"Bank of America strategists have declared a global earnings recession that can only be cured by a recovery in Asian export growth."
"Bank of America strategists have declared a global earnings recession that can only be cured by a recovery in Asian export growth."
Globalization 4.0: Trumptopia Lost
