One word says it all. And yet again we are forced to comment about the "country that shall not be named" not because of what they are but because of whom they have elected. To be clear, we could spend countless hours dissecting Trump and its style but in the end it is pointless. It matters not.
The USA is on its long way down into oblivion. This much we said in our article Why The USA Is And Is Not Important. However, it would be premature to simply write them off. Not yet. And herein lays the danger. A wounded tiger will fight fiercely to the death simply because it has nothing to lose.
Trump does not represent the ultra-right, red-neck, under-educated people of "that" country (although it is most definitively funny to poke fun with the idea - see the picture?). Trump represents the repressed anger of most people in that country as the notion of US's irrelevance begins to sink in. They have been at the top of the food chain for so long that they don't know any better. Suckers!
Or to be more precise… history!
OK, enough with the lesson. To task.
Why are we writing this article today?
Because we are going to throw into the ring our two cents worth of Austrian Economics knowledge. It is quite simple, really.
Do you want to know what will happen with Trump's rein? Watch the economy.
Yes, we know, it's boring.
Let us say it again.
Watch the economy.
Forget China, EU, Russia, the votes, the blacks… errr "nigros"… latinos, ISIS, the military, Trump's wife and his preferred dog (if he has one). There will be plenty of distractions and showmanship in his mandate. All that is irrelevant.
Watch the economy.
We also know that the reality of the presidency (a title with little power to decide and a lot of power to negotiate) sinks in. Watch how Trump gets mellowed into submission. Watch his empty gestures. His bullying. His nonsensical ramblings. Watch all that and realize that you are only watching a show. An entertainment. A mirage. Nothing of that is real.
Watch the economy. That's the only real truth.
If Trump drops taxes significantly in real terms and allows for free trade, then the US will go up… at least for a little while. If he does anything else, in real life, without smoke and mirrors (as all politicians do), then the US will stagnate… as it is doing now.
Watch the economy.
Without an economy political and military power is unsustainable. Without political and military powers, the US is toast… as we told you before. Period.
And those are our two cents worth of knowledge.
You can take them or leave them.
But remember, betting on a person over the wisdom of an entire economy is foolish. The US is still toast. And that's that! We got it out of our system. Now back to business as usual.