…What can We Do to Save the USA?…
We need to neutralize Trump now. (see Protest Plan). It is not only democracy, but also the USA economy that is headed for the cliff. Trump is responsible for the decline in the sales of USA products overseas and soaring consumer debt levels in the USA.
Last month, China cut its purchase of USA products by 31%. Other countries are also avoiding USA products and services. If Trump stays in power, the decline in foreign purchases of USA good and services will only accelerate. Once these customers are gone, they are unlikely to return.
With the loss off product sales to other countries how can the USA economy be so strong? It is,because the spending spree by USA consumers has offset declines in oversea sales. Consumers are not only spending everything they earn, but also whatever they can borrow.
So what is the problem with Trump’s policy of, ” borrow, borrow, spend and spend, until lenders will no longer lend? ” Over-borrowing. It lead to the Great Depression and the Great Recession. And we are moving in that direction now. Consumer debt almost doubled in the last ten years to a record exceeding $4 TRILLION. Seven million people are more than 90 days late on their auto loans. Delinquencies on credit card debt has also been rising especially among those under 30 years old.
t’s not only consumers holding record amounts of USA debt. The USA debt level now exceeds $22.5 TRILLION. Each MONTH the government needs to borrow $100 BILLION just to pay its bills. And foreign countries have cut back on their lender to the USA also. Much of the new debt is being purchased by retirement funds. Wall Street mutual funds are also big buyers for 401Ks.
When you combine high debt levels with likely declines in employment, the future looks scary. We are just beginning to witness the misery caused by Trump’s trade war with China. Farm bankruptcies are increasing as soybeans rot in storage. There is talk that auto workers will so be laid-off in large numbers later this year. If Trump stays in power, we will see more layoffs as exports of the goods we produce decline.
It is not a question of if, but when will the economy slow down. Trump needs to keep the economy hyped up on easy credit until after the 2020 elections. This is why Trump told the Federal Reserve to cut interest rates or they will be fired. Federal Reserve is going to comply in an attempt to help Trump keep the economy booming until after the 2020 elections.
Can Trump keep the economy from falling off the cliff until after the 2020 election? With Trump now taking control of interest rates, he improved his chances. As long as consumers continue their spending spree, the economic bubble will continue to inflate.