What the hell are Donald Trump and his new Treasury Secretary, Steven Mnuchin, doing?!

A new supply-side strategy? Just when we have overcapacity everywhere thanks to the greatest debt bubble in modern history; one that’s caused consumers, businesses and governments to overinvest and buy?

This is, without a doubt, the stupidest thing I have ever heard!

They actually think that businesses are going to expand under their new strategy. Ha! Businesses didn’t expand with zero interest rates. Instead, they bought back their own stocks and financed near-meaningless mergers and acquisitions?

Sure, Ronald Reagan became president following the greatest inflation and supply-side crisis in history. Hence, his supply-side strategy worked. Duh! Inflation means excess demand versus shrinking supply! More people wanting what little there is. That’s when a supply-side strategy and greater deregulation actually can and does work!

But pundits comparing Trump to Reagan are missing this larger point. We’re in a deflationary demand-side crisis, with excess capacity or supply, like the 1930s.

We don’t need more supply, except in a few little places here and there – like nurses!

We need more demand, and we’re not going to get it. Not while the greatest generation in history (both in size and influence) are saving more and retiring in droves.

How has Japan’s endless and much more extreme stimulus and QE done in creating higher demand in Japan since its demographic trends peaked in 1996?

Exactly!

It hasn’t done a damn thing.

Republicans, Democrats, Libertarians, economists, Wall Street analysts… no one gets that demographics have thrust us into a new era. Almost all developed countries will slow dramatically and/or decline in population growth, workforce growth will decline even more, and innovation/productivity has slowed to near zero, simply because…

WE ARE AGING!

Why is this so hard for the “experts” leading us to understand?!

Print Friendly, PDF & Email

Related Posts