Donald the Great?

Having already written about some things to look for in the New Year, I’d like to take a new approach. Donald Trump’s talk about making Canafda the 51st state, buying Greenland, and repossessing the Panama Canal caused me to think of how leaders who see themselves as bigger than life seem focused on the past rather than charting a future that benefits those they lead.

Our major adversaries, Russia, Iran, and China, are centered on recreating old empires. Turkey may be poised to join this group. Putin in Russia regrets the loss of the Empire, created through centuries of Russian expansion culminating in the vast Soviet Empire, which collapsed under Cold War pressure. Setting up stooges in some adjoining territories and continuing to attack Ukraine, the Russian strongman is expending blood and treasure on a grand scale to reestablish the Empire.

The Histories of Empires from the Persian through the Sasanian, centered in Iran, fuel the Mullahs’ desire to widen their reach across the Middle East. They may, as Shites, even see themselves as rightful ones to bring back the Moslem Empire of the early caliphs.

No nation has a more extended History of Empire than China, going at least back to the Shang Dynasty (221 B.C.). Before the communists, the Ming Dynasty (1368 to 1644) was the last to attempt expansion, sending fleets and armies to gain control of both the land and maritime Silk Roads. However, reversals such as the Tummu crisis caused China to look inward. While Chinese fleets reached the east coast of Africa in the 15th century, they never rounded the Cape of Good Hope. Later in the century, the Portuguese did, and the direction of the history of the world changed. I covered this outcome in my “The 15th Century Came and nothing would ever be the same” post in “The Long Journey to More” series.

Xi Jinping seems intent on succeeding where the Ming Dynasty failed. His Belt & Road Initiative intends to recreate the land and maritime Silk Roads under Chinese control.

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Trump vs. Trump?

Recent events have added credibility to some of my posts. Not long ago, I cautioned that the Federal Reserve’s (Fed) series of interest rate cuts might be at odds with the actual inflation outlook. The Biden spending spree adds to our high national debt, while the Social Security (S.S.) Trust Fund runs dry at best in ten years, with both parties adding to the program woes. Medicare may be in even worse shape.

Biden’s proposals will increase S.S. payouts to government retirees, and with Trump’s plan not to tax any S.S. income, retiree checks could face cuts even sooner. Maintaining the current level of payments will mean even more government borrowing. Already expected to lend trillions more, bond buyers must absorb more extensive offerings in the future. In the face of increasing interest rate risk, they’ll want more upfront.

The first chart is the inflation rate, showing it is still above the 2 % target:

This chart shows the Fed’s interest rate cuts:

While the U.S. 10yr Bond interest rate returned to near its highs:

Mortgage rates stay high:

This week, the Fed cut short-term rates another quarter point but said it would probably cut two times next year instead of the signaled four. The Dow dropped over 1,100 points. Confusion is the only explanation.

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Is Trump Looking for The Union Label?

Trump’s choice of Oregon’s U.S. Rep. Lori Chavez-DeRemer as labor secretary got me thinking about organized Labor. The prospective Secretary voted for the highly favorable organized Labor PRO Act. This wide-ranging labor law would rein in the so-called gig economy and boost workers’ organizing rights. Along with Donald Trump inviting the Teamster union’s president to speak at the Republican convention, you have a picture of a party looking to wear the “union label.”

This turn of events made me wonder if unions are a force for good or politized entities that do more harm than good. I grew up in organized Labor’s heyday, the 1940s and ’50s, when 1 in 3 belonged. Unions enjoyed their highest favorability. One not so happy with organized Labor was my father, a part owner in a Chicago manufacturing company; he had to deal with wage demands, work rules, and strikes in his industry and those in the supply chain.

A successful furniture company listed on the American Stock Exchange was in an industry that had it with unions and moving to “right-to-work” states. My father felt the company should follow and head south, but his partners refused. Fearing the worst, he sold out his shares and comfortably retired. A decade later, the company was bankrupt. It could not compete against lower labor costs and looser work rules that allowed automation.

The migration from the unionized north had already been underway long before China opened up, so they’re not to blame. Once the class of the world, our most heavily unionized industries lost out. We used to think of U.S. steel and General Motors the way we think of Apple and Microsoft today. The government baled out G.M. and U.S. Steel for sale, maybe to a Japanese company.

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All We Want Are The Facts

The reaction to Joe Biden’s super broad pardon of his son Hunter provoked a reaction exposing how each half of the country views things from different perspectives. Do we have any common sources of information, or do we exist in two distinct bubbles?

On one side, the president did what any father would: protect his offspring. The Justice Department prosecuted his son, Hunter, because of who he is. Nobody else goes to prison on similar charges. In any case, Hunter was on drugs when he committed the crimes, and now he’s clean and sober. Isn’t this the country of second chances?

With the holiday season upon us, forgiveness seems the right course. Other presidents have pardoned family members, so why pick on an old retiring man who spent his entire adult life in public service simply for being a loving father? A Wall Street Journal letter writer made this case, speaking for many, seeing the pardon in terms of kindness, not flouting the law.

Rather than owning up to being grinches, others see the pardon in entirely different terms. A flawed politician took action to protect family members, including himself, from exposure to his corrupt family influence peddling business. Joe Biden represents the worst of the political class. Serial lying while lining their pockets. An earlier presidential run was killed by being caught plagiarizing others’ work, but a wide array of character flaws never stopped him for long.

The volume of lies surrounding Hunter’s laptop is enough to illuminate who Joe Biden is. The computer isn’t Hunter’s; it’s Russian disinformation. The support for his contention is a letter from 51 former intelligence “experts” instigated by his campaign leader. He has yet to meet with Hunter’s clients. He never discussed business with his son. All lies. Biden built his career on a mountain of lies. Why believe him now?

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A Look On The Bright Side

As we approach the white house return of Donald Trump, there seem to be two distinct views of what it portends. On the left, it means a mass roundup of illegals and their placement in concentration camps awaiting export—the economy in shreds without adequate labor. Inflation is roaring upward, fed by tariffs and rising prices. Tax cuts add to the flames by producing huge deficits. The resulting high interest rates put homes and much else out of reach.

Inequity will rise, with Trump’s billionaire friends growing richer while the rest of us fall further behind. Efforts to make businesses and institutions more diverse and inclusive are stalled or reversed. According to Washington Post columnist David Ignatius, instead of a progressive, forward-looking society, we’ll be in the hands of the backward-looking “regressivists.”

Ukraine turned over to Russia’s tender mercies while our former friends and allies abandoned us. Belittled by Trump and harmed by his high tariffs, they retaliate, plunging the world into a deeper recession and raising the danger of World War III. Trump claims dictator powers.

While Gaetz withdrew from consideration as Attorney General, others nominated, such as Pete Hegseth for Defense, Robert Kennedy Jr. at Health and Human Services, and Tulsi Gabbard as Director of National Intelligence, confirm the left’s fears that inexperienced extremists will run the government.

In fear of these horrible outcomes, blue states are checking their resistance options. The governor of California has even called for a special session of the state legislature to raise funds for legal action. Others are seeking ways not to cooperate with or impede the federal government.

For those looking at it from this progressive point of view, the future looks bleak. However, the landscape might be more favorable for success from a right-of-center perspective.

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