As the Dow edges up towards a lunatic 20,000 index level, there seems to be an unwillingness to break through. It is ironic how Trump’s reflation talk is being used to create a faux Bull market……while so many of those organising it revile the President-elect.
Anyone who thinks the US Establishment isn’t out to “get” Donald Trump could be quickly disabused of that idea purely by watching channels like Bloomberg, CNN and CNBC. On the last one of that TV Troika’s channels today, the bias against the President-elect went beyond disrespect and into mordant criticism of the bloke as if he might be a total moron.
I wouldn’t pay to have lunch with him either, but the people on these news stations know perfectly well that there is little or no correlation between being an intellectual linguistic expert on the one hand, and a shrewd business strategist on the other. They’re fully aware of how smart he is and the ferrous nature of his balls, so their decision to diss him nonstop on-air is very obviously an editorial one.
By doing this, all they highlight is the archaic, boxed-in nature of their analyses….and of course, their rampant cynicism. This from a senior talking-head guest this morning:
“Well you know, what I see is a series of good numbers, and so my view is let’s enjoy the party for two maybe three years without worrying at this stage who gets to clear it up…”
Acutely aware of what an enormous clanger talking birdbrain had just dropped, a Squawk Box anchor hastily butted in and asked how his view of the immediate future would change if the new President stuck to his guns on ignoring trade deals with no foreseeable benefit for the US.
“Oh sure, if this anteye-globalist President perseveres with his ideas for ignoring the future, well, yeh….I mean, it’ll blow the whole thing sky high and then in four years time, the People get to have another chance to work out which way is up….”
It was impossible to miss the imputation from the two statements: ‘business as usual, f**k the USA, this is the New Globalist Order and we can destroy any attempt by him to f**k with us’.
The particular subject under discussion was China, and Trump’s choice of a naysayer on China as his key economic advisor. I suppose it’s only a matter of time before the Leftlibs dub this outlook ‘isolationist racism’, but the truth is that The Donald’s mercantile thinking is that of a businessman unwilling to screw US workers by engaging in trade that delivers shoddy goods and higher levels of long-term unemployment.
It’s not as if I’m jumping on a “populist” (the new Progressive insult of choice) here: for over seven years now, I have been asking why the West keeps licking Beijing all over when almost nobody ever comes out equal in a Sino-Western trade deal. I pride myself on being more tuned into Chinese culture and wisdom than 99% of fang-wois: and thus I think China’s current role as ‘low-cost shit supplier’ will be disastrous for the genuine spread of wealth within the CPR.
The Chinese leadership has fallen into the Russian trap of apeing the West in terms of Bourse finance and the encouragement of high repurchase rates to keep volume sales up. But their margins are being diluted by smaller Asian tigers – and it’s turning into a race to the bottom of the barrel in terms of unbranded, unacceptable product quality and falling share of trade.
There’s nothing Western service-based and financialised capitalism would like to see more than China cornered in an increasingly generic niche. But putting the Chinese People first, a shift to a much larger skill base – and thereafter innovative, branded-reputation products – would be far better for them. If President Trump pushes Beijing into accelerating that transmutation, he will have done the ordinary CPR citizen a big favour….and stopped the process of Wall Street screwing everyone West and East via slave-labour based cost reduction. For the US worker, it is the only hope if they are to be lifted out of an increasing level of poverty.
From the start of his bid for the White House, I’ve been arguing that Donald Trump is an Independent “borrowing” the GOP ticket as his practical route to power. He is that rare thing, an apolitical President who refuses to be pigeon-holed. He is dismissive of diplomatic double-talk, a sceptic about climate change, suspicious of globalist trade, and doubts very much if the political class has anything to teach him.
But daily doses of the American business media tell anyone with the slightest degree of discernment that his doubts and suspicions about them are as nothing compared to theirs in relation to him.
I’ve no idea where it will end, but I do know that in the immediate term, the idea of the West destroying labour’s wage rates to compete head-to-head with Beijing is both daft and dangerous; while in the medium term, the West supplying high-value cachet goods to the growing Chinese top end middle class would act as a complement to China exporting added-value products to the lower end of ours. That way – gradually – a peaceful road to eventual equalisation can be trodden.