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September 12, 2017 | Republicans Have Lost the White Hous

Is an American author of books and articles on economic and financial subjects. He is the founder and president of Agora Publishing, and author of the daily financial column, Diary of a Rogue Economist.

NORMANDY, FRANCE – Until last week, Republicans controlled the House… the Senate… and the White House.

But who controlled Republicans?

As it turned out, many – including the Republican-in-Chief – were out of control.

Then came the explosion. Dazed and shell shocked, it took commentators, analysts, and GOP members a few days to get their bearings.

Stunned and dismayed, when they opened their eyes, they could scarcely believe it: Republicans had lost control of the White House!

Party of Trump

Their main man, Donald J. Trump, has left the reservation.

He’s now acting independently, ready to break bread with either party, depending on which way the wind is blowing.

And in a late, degenerate empire like the U.S., you don’t even have to look out the window. The predominant winds blow in only one direction.

Trees bend… buildings sway… even the cows lean – as gusts of hurricane force sweep money from up and down Main Street… and blow it toward the insiders, their zombie clients, and the crony hustlers.

Ultimately, the Deep State controls both parties. There are too few genuine “conservatives” or honest “liberals” left to make any difference.

Naturally and rightly, both parties are held in contempt by everyone who stops to think about such things. That is why the path is now open for the Great Disruptor to walk away from his Republican allies and form a new party of his own.

He’s put his brand on wine, ties, steaks, hotels, casinos, a university, an airline…

Why not a political party?

Emmanuel Macron did it in France. Juan Perón did it in Argentina. Hugo Chávez did it in Venezuela. Adol… oh, never mind.

Financial Wreck

But let’s go back and look at some of our core dots and see whether they connect the way we think.

Governments are always looking for ways for the few to exploit the many. They are essentially win-lose protection rackets. You pay – or else.

In the American colonies, smart people – Jefferson, Adams, Madison, and others – put up obstacles designed to keep the feds in their place.

Specifically, the Constitution and the Bill of Rights were intended to protect citizens from their predatory government.

Later, in 1917, another protection was put in place: a debt ceiling to limit the amount of money the insiders could borrow in citizens’ names.

But over time, more chiselers and grifters slithered into the Washington swamp. Republicans and Democrats – they enacted laws, regulations, and policies that cost the public money… but paid off for the insiders.

Gradually, a Deep State took shape. It now makes the important decisions, regardless of what the voters want.

And little by little, the insiders overcame the measures put in place to hold them in check. The last major barrier still standing in their way – the debt ceiling – was set for demolition last week.

Mr. Trump, turning on his own party, made common cause with the Democrat leadership to get rid of it.

What does this mean for us? For the stock market? For the economy? For bonds and the debt market?

Trillion-dollar deficits… more and more people retiring… a runaway empire… and rising debt.

There is no way, politically, to stop this train… because the people who control the system also benefit from it. They don’t want it to stop.

And now, there is nothing standing between the U.S. and a national financial wreck.

Third Way

But we’ll come back to that tomorrow.

Today, let’s stick with Mr. Trump… and a little malign reverie.

Is it possible that he will start his own political party? A “third way” like Macron, Perón, or Chavez?

Yes, it is.

He may do so partly because he will be rejected by the Republicans, who are getting tired of pulling knives out of their backs… partly because it appeals to his own egomaniacal, goofball character… and partly because it increases his power, allowing him to become the real decider, swinging between Republican and Democrat proposals.

Like Mr. Perón’s creed, “Trumpismo” will be starkly demagogic, functionally socialist, and deeply opportunist.

And like Mr. Perón, Mr. Trump will go directly to the masses, tweeting promises of riches and national greatness. He will rail against the Republicans blocking his loony programs. He will rant against the Democrats for resisting his ghastly projects. He will howl and whine about the “fake news” media.

He will be the counterfeit champion of the “little guy” against the Establishment. And Ivanka – fresh from a breakfast meeting with Fed chief Janet Yellen where they discussed the plight of working women – will be his Evita.

She will represent the poor… the lonely hearts… and orphaned children. She will distribute presents at Christmas… and lobby for more benefits for the downtrodden.

As her father surrounds himself with generals… and basks in the reflected glory of ersatz heroes… Ivanka will appeal to the false, feminine soul of the people, offering the soothing balm of other people’s money.

If he fails – which is most likely – Mr. Trump will disappear in the chaos and ignominy of the coming financial crisis. If he succeeds, Trumpismo – like Juan Perón’s movement in Argentina – will blight the American political landscape for the next 70 years.




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September 12th, 2017

Posted In: Bill Bonner's Diary

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