“He has a short amount of time and I think he is sincerely trying. Let’s say in the next year or eighteen months we have a downturn similar to 2008, much worse than 2008, they will say ‘ah, it is all Trump’s fault’. No, it won’t be, it will be the fault of the Federal Reserve, the Keynesian economic model, the overspending too much and the deficit. Unfortunately, there is nothing he can do. He can help, help to minimize the damage, but he can’t avoid the correction.” Former Congressman Ron Paul in an interview on President Trump and the economy, January 24, 2017.
As of just over a week (and a bit) ago, we now have an official President Trump. On a historic day, marked by huge enthusiastic crowds flanked by similar numbers of protestors, Donald Trump was inaugurated the 45th President of the United States. And as we have seen, he has wasted no time in implementing his campaign promises and overall agenda. It seems that Trump is in a race against time, a race to undo the damage of years, even decades, of fiscal abuse within our economy. And that perception may very well be justified.
In talking with folks who have seen presidencies since Roosevelt, never has a President in history appeared to jump into the job with such alacrity. The focus and energy that President Trump is showing cannot be denied. What does he know that we should understand? Perhaps in a Fox News exclusive with Sean Hannity yesterday he gave us a glimpse. “Our country is in bad shape” Trump echoed several times in the interview.
And, looking strictly at the numbers, President Trump would be right. As our sovereign debt approaches twenty trillion, and unfunded liabilities many times that number, financial and economic hardship seems just around the corner. Thus President Trump races to slash taxes, reduce spending, repatriate billions in cash and corporate earnings, untangle regulations, and return jobs and manufacturing base to the U.S. He has revived the XL and Dakota pipelines as the first step towards energy independence. He has leaned on employers and unions alike to revitalize our economic fundamentals and get America back to work immediately. He obviously understands, in a race against time to avoid economic failure, there is little room for half measures and everyone needs to work together.
These actions show what any astute businessman who assumes such a position must see quite clearly if he is to be ultimately effective. With the current debt levels, regulatory entanglement and sluggish economic performance of the last ten years, America may soon go belly up if we do not institute severe economic and regulatory reform. Outside of the politically correct, feel-good speak that defined the Obama administration, focused business owners, financial experts and objective economists have seen the writing on the wall for some time. Donald Trump the businessman has been one of the best negotiators and turn-around artists in business history. Now, the question is, can he do the same on a national scale as President?
The impending financial crisis, as Ron Paul has pointed out, probably cannot be completely averted. The numbers surrounding sovereign debt, corporate debt, unfunded liabilities and the risky derivative market are simply too overinflated. Something has to give. The real question will likely be whether President Trump will do everything possible to soften the blow. Savvy analysts such as Peter Schiff, Jim Rickards, Bix Weir and Jim Rogers all agree that the next crisis may proceed far beyond the bailout of banks and other financial institutions. It could literally destroy currencies, such as the U.S. dollar, and any economy associated with those currencies. In order to avoid such calamity and the social unrest and violence that would inevitably result, drastic changes are certainly in order.
And President Trump seems to be in tune with that wavelength. In fact, it could be historically argued he ran for President precisely to attempt to reverse the collision course our economic policies are making with disaster. He has voiced his displeasure over the economic direction of America publicly and privately for years.
The best case scenario, if Trump is able to successfully execute an economic resurgence of any significance, is substantial inflation and difficult renegotiation and restructuring of our debts. These actions, combined with a vibrant resurgence in both manufacturing and innovative industries as a foundation, allows the U.S. a chance to survive the impending financial storm with only minor damage. If Trump loses this race or is delayed by an uncooperative Congress, we could see nothing less than the complete meltdown of the dollar and wholesale devastation of our economy.
The numbers and the opinion of many high-level analysts would suggest that this race against time is very real. America has been down for some time, but the American spirit should suggest that we are never out. Trump represents a genuine “never say die” American spirit, as illustrated by his first tireless week in office. He is about as “old-school” as a leader can get in this regard. Feelings on style points or social issues aside, every American should give President Trump the chance to see if he can successfully work the greatest turn-around assignment he has ever received. The economy of the United States of America. The benefits that could be achieved by winning this race transcend party or policy. It is a victory that would improve the welfare of all Americans.