Maryland Man or Salvadoran Savage?

Liberal Media HUMILIATED as DESPERATE Dems in Polling FREEFALL

The Democrats have chosen their stand-in for every put-upon innocent in the world: Kilmar Abrego Garcia. Of course, one must be willing to ignore a few items on his resume (or rap sheet).

In Patron-Client relationships, the patron offers protection and benefits to clients in return for loyalty and service. This is a feature of Progressive Politics (one of their criticisms of Trump are his "transactional" relationships). We often see them defending people who are hardly deserving of these efforts  -- their clients. These campaigns are not about saving these clients (in fact, they are disposable) but about recruiting others impressed by the display of power. In a sense, a "Dead George" is better than a live "Maryland Man."

At the same time, the movement goes after the opponents with few, or no, holds barred (see: Jan. 6ers). Attacking the "good" while defending "the bad" reenforces loyalty among the cadres. Anyone can champion the innocent, it takes a servile hack to champion the guilty. Still, it's the "under the table" benefits that keep the influential and wealthy recruits attached (see USAID etc.). Their cronies grow hungry and need to be fed.

These "misfires" and loss of power displays are an existential threat to the movement. A moderate camouflage is called for.

Tactics and Tariffs

The Genius Behind The Trump Tariffs

We export Government Debt. "Junk" is sold to US consumers for dollars and Junk (dollar-denominated Treasury Debt) is bought by foreigners. Incumbent -- and often incompetent -- politicians can spend money to keep their supporters happy without raising taxes. If the dollar were backed by gold, we would have run out of gold (and imports) in the 1960s. But then we could not have fought the Vietnam War and built LBJ's not-so-Great Society.

The dollar is now backed by American assets (such as real estate -- when they sell our debt, they can buy our houses). We sacrificed our industries to re-elect politicians and benefit Wall Street, Silicon Valley, and the Wealthy Everywhere. Next, we'll sacrifice our homes. We need to get spending under control.

The President should announce a trade deficit target. The deficit was $1.2 trillion last year, so put it at $800 billion this year, $400 billion the year after, and a max of 200 billion every year after that. Impose penalty tariffs for each year a nation sells 10 percent more than it buys. The more goods a country buys from the US, the more it can sell in return. 

Oh, the Horror!

Global Financial Bloodbath: $5 Trillion Wiped In 2 Days | Will Europe Turn To China

For decades, one of the biggest—if not the biggest—US exports was (and is) debt, mostly government debt. Foreign nationals use Treasury bills as collateral, often in trade with nations other than the US. Meanwhile, Wall Street makes out as the "middle man," and Congress Critters can spend money feeding their special interest friends without raising taxes. So we are selling off bits of our nation in return for trinkets.

To cut the trade deficit, we will need to cut the budget deficit or save more as a nation (and consume less). In recent years, the Treasury floated more short-term debt, which we must roll over, so interest rates may not decline by much (although those looking for a "cash" position while things get sorted may want what the Treasury offers). Painful adjustments (many affecting quite influential groups) will be required.

Inflation has helped boost the stock market beyond the valuations the traditional "P/E" ratios would suggest. We may be witnessing a return to the mean, which may seem mean indeed as investors race to "de-leverage" first. Meanwhile, most corporations bought back shares when interest rates were low, pumping up the market, and may be selling now.

It is said Europe will turn to China to replace the United States, while China turns to Europe to replace the United States. I wish them luck.