Congratulations President-Elect Trump – Now, get to work!
Donald Trump will face some serious challenges. A financial crisis during his term is almost inevitable, and he’ll have to manage one of the most challenging geopolitical situations the US has found itself in since the Cold War.
The last two global financial crises took place in 1998 and 2008, respectively. Many fundamental problems from 2008 haven’t been solved. Global growth remains below trend and central banks’ balance sheets remain bloated. This means that a financial crisis is due sometime in the next few years. What would make this different is that central banks would be unable to print more money for bailouts without significantly denting confidence. The Federal Reserve has printed almost $4 trillion over the past 8 years. Would it be viable for them to print another $4 trillion? Probably not.
As economist Jim Rickards has said, the next crisis will be too big for any central bank to handle, and would likely require the International Monetary Fund to step in. World powers will need to sit around the table and come up with new Bretton Woods-style rules for the international monetary system, and the dollar will most likely lose its status as global reserve currency, possibly to be replaced by the IMF’s special drawing right. Trump may be the best person to lead such negotiations, and there can at least be some hope that Trump would do what’s best for the American people, and not what’s best for Wall Street.
The other challenge a Trump presidency will face, is a difficult geopolitical environment.
For the sake of world peace, good relations with Russia will have to be restored. Trump has said he wants to be friendly with Putin. This would certainly be a step in the right direction. The other major problem is ISIS. Trump hasn’t given any specifics on how he will defeat ISIS, but he does seem keen to intervene. Any military action in the Middle East will have to be in cooperation with Russian and local forces. We must not forget that Clinton has been antagonistic towards Russia for years, and has even made some blatant threats against them. She is also responsible for much of the chaos in the Middle East. She overthrew a stable regime in Libya, throwing the country into chaos, and disturbingly laughed about it. She also contributed to the instability in Syria by providing arms and resources to ‘rebels’, which later turned out to be jihadists.
What must also be taken into account is whether Trump will be able to unite a very divided country.
Those disappointed by Trump’s victory have reacted very emotionally. The usual empty words like ‘racist’, ‘xenophobe’ etc. are being thrown around by the political correctness brigade. This is also a major upset for the media (presstitutes), academic and political elite. Their candidate lost, and it is now clear just how out of touch they really are. This is a huge opportunity for grassroots and alternative media to grow.
Trump has an almost insurmountable challenge ahead of him. In 4 (or 8?) years from now, we may well say about Trump what we say now about Obama: that he simply hasn’t delivered the change he promised. What makes Trump different is that he is truly an outsider. He is a billionaire, but he’s not part of the economic or political elite. He doesn’t hang out at Davos or Jackson Hall with other billionaires. He also appears to be stubborn enough to actually have a chance of ‘draining the swamp’ – although this may be impossible.
All in all, America, the empire of our time, is in decline, and we need to see what happens next.