Why Democrats won’t win in 2020 . . . they have no plan for raising real wages

money for nothing

Posted on September 24, 2016 by ptaka71907 Standard

Professor Allan Lichtman has correctly predicted every presidential election since 1984.

And this year, he says, Donald Trump will win.

One of the keys he employs to determine a victor is the following: Real per capita economic growth during the term equals or exceeds mean growth during the previous two terms. That is, did real per capita economic growth of the present Obama administration, equal the growth of the Bush Jr.’s last four years and Obama’s first four years. And as showed with tax revenues, the last two years of the Obama administration the economy has tanked.

However, I think this election will be even more extreme because Donald J. Trump is asking voters to consider how America was prior to globalism that came into existence in the ’80s. If workers are forced to consider the halcyon days of the 1960s and 1970s when real per capita income peaked, the flaccid performance of the last four years are going to compare very unfavorably. Indeed, real average weekly earnings peaked way back in 1973. It is the ol’ saw of Ronald Reagan, “Are you better off today than you were in years past.” And on that basis, this election should prove to be a slam dunk for Donald J. Trump.

The Democrats have no answers because the quantity theory of money does not work. It has not led to real growth in production. What has occurred because of lax monetary policies, the money printed up is being used to front run the Federal Reserve. Traders and primary dealers are buying up treasuries knowing the Fed will buy up the paper at top dollar, thereby turning virtually risk free profits for the banksters.

Competition for the treasuries keeps interest rates low, assuming inflation is controlled. But it is all a Catch-22 since the bank’s account credited by the Fed for the purchase of treasuries leads to fractional reserve lending that expands the money supply many times over. That by definition is inflationary because the latter rests upon the supply of money. Consequently, inflation must be hidden, and this was done by manipulating the gold price with naked shorts.

That is, selling a financial instrument into the market though you don’t actually own the underlying commodity to suppress the price. In my opinion this is fraud, but it is secondary to the gold carry trade where a person borrows the physical metal from a bullion bank, sells it into the market hoping to buy it back when it falls in price. The danger being, that gold unlike other commodities might go into private storage as a primary store of value, and not return to the market in which to close the trade.

This is what I believe has occurred for most of America’s gold. That it was used to suppress the price of gold and can’t be retrieved. This is also a harbinger of hyperinflation because it reduces the dollar into a confidence game, held together up until now by backing the dollar with oil. Hence we can immediately see why Iran will invite being attacked when it drops the dollar in March 2017. Central banks accumulated dollars for the purchase of oil. Think what will happen when you have another fiat currency, but one backed by gold, to purchase oil? It won’t be pretty.


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