The first is the quarterly report, the salaries and benefits, not to mention tenure of the executives of corporations depends on the latest quarterly report. This leads to short term thinking, the future be damned they want to survive the next three months. That's the Achilles heel of capitalism, and the threat to mammalian life on earth. Whereas dictatorships like China, think long term with 5 year plans, and even longer future goals.
The second would be racism, not the over kind where people are called names, and visibly discriminated against.
Musk is an avowed racist, and a neo NAZI,,his acne squad of Big Balls and friends, killed USAID, and Trump has neutered the State Department. The result is that Africa and other third world counties will suffer even more from the ravages of disease and climate change, which will lead (hopefully for Musk , et al) a decrease in the non white population, but the unintended consequences will be an increase in migration north, resulting in a rise of the right in the form of fascism (neo NAZI) political organizations and even governments. Orban, and now FIico's Slovakia. All European countries are moving right because of immigration, not so much because of racism. (American racism is different and has different roots than any racism in Europe), but because of the threat of powerful, insistent and homogeneous ultra conservative culture, that of Islam, threatening to overwhelm liberal western culture.
As America retreats Russia and China advance, Russia brings its mercenaries, like the Wagner Group, as essentially body guards for the reigning regime. China brings the promise of construction, rail roads and ports. Railroads and ports that will transport resources to China and import goods from China. It promises but supposedly is not so good at delivering.
America retreats, Russia and China advances, it is almost as if by design.
America under Trump has become a second rate world power. The only power he has is our propensity and addiction to consume resources and products, and that ability is powered by debt, government, corporate, private.
And that ability is declining, Moody's downgraded the U.S. government's credit rating from the highest possible (Aaa) to Aa1 in May 2025, citing rising federal debt, mounting interest costs, and fiscal imbalances. This move caused Treasury yields to spike, which can increase borrowing costs for consumers and pressure the stock market.
The rise in interest rates leads to a reduction in consumption, a reduction in consumption leads to a loss of sales, a loss of sales leads to a loss of jobs, in production, transportation, advertising, sales personnel, maintenance personnel, etc, and that is why Trump needs the Fed to reduce interest rates.
However reducing interest rates will only affect the national market, it will reduce the interest rates the Fed charges member banks as they purchase government securities, which they use as their fractional reserve base, the base that they use when they loan (and thus create) money, when they approve a mortgage or you swipe your credit card.
A reduction interest rates has nothing to do with the interest charged on your credit card balance
And nothing to do with the interest on government securities (Treasury bonds and bills), they are sold to the Association of Primary Dealers in Government Securities, which then sells them to the Fed, institutions and overseas investors (sovereign funds and Central banks) They are printed with a Yield but as the demand decreases, the discount price also decreases, in other words they are sold at discount, and if the rating drops lower the discount price further increases
Trump is too stupid, too ignorant, he doesn't know this stuff,so he is being advised, by who? Bessent?
Trump apparently believes that by dropping interest rates, he is going to spur consumption, and give an illusion of prosperity, but his policies (immigration, tariffs, social/political like SNAP) are hurting the economy
Not to fear though, his base, farmers, rural America, the heartland which is MAGA remain firmly in the cult, their quality of life may degenerate, but at least he is winning the culture war, saving them from the threat of. Spanish speaking brown people and that enemy to be feared above all else. the gransgendered.
Right now, the American voter has stumbled into the clutches of a leader who is totally immoral and driven by lies, greed, racism, and fear. The entire administration is corrupt, taking bribes from everyone and disregarding laws. They have captured a cult following by using racism and religion wrapped in the flag. They are well funded by a group of entitled billionaires who want to own everything.
But this is not what most Americans want. We have to openly stand in opposition, make sure we have free elections, and irk together to crush this fascist/religious MAGA movement.
I see two problems, or shall I say causes
The first is the quarterly report, the salaries and benefits, not to mention tenure of the executives of corporations depends on the latest quarterly report. This leads to short term thinking, the future be damned they want to survive the next three months. That's the Achilles heel of capitalism, and the threat to mammalian life on earth. Whereas dictatorships like China, think long term with 5 year plans, and even longer future goals.
The second would be racism, not the over kind where people are called names, and visibly discriminated against.
Musk is an avowed racist, and a neo NAZI,,his acne squad of Big Balls and friends, killed USAID, and Trump has neutered the State Department. The result is that Africa and other third world counties will suffer even more from the ravages of disease and climate change, which will lead (hopefully for Musk , et al) a decrease in the non white population, but the unintended consequences will be an increase in migration north, resulting in a rise of the right in the form of fascism (neo NAZI) political organizations and even governments. Orban, and now FIico's Slovakia. All European countries are moving right because of immigration, not so much because of racism. (American racism is different and has different roots than any racism in Europe), but because of the threat of powerful, insistent and homogeneous ultra conservative culture, that of Islam, threatening to overwhelm liberal western culture.
As America retreats Russia and China advance, Russia brings its mercenaries, like the Wagner Group, as essentially body guards for the reigning regime. China brings the promise of construction, rail roads and ports. Railroads and ports that will transport resources to China and import goods from China. It promises but supposedly is not so good at delivering.
America retreats, Russia and China advances, it is almost as if by design.
America under Trump has become a second rate world power. The only power he has is our propensity and addiction to consume resources and products, and that ability is powered by debt, government, corporate, private.
And that ability is declining, Moody's downgraded the U.S. government's credit rating from the highest possible (Aaa) to Aa1 in May 2025, citing rising federal debt, mounting interest costs, and fiscal imbalances. This move caused Treasury yields to spike, which can increase borrowing costs for consumers and pressure the stock market.
The rise in interest rates leads to a reduction in consumption, a reduction in consumption leads to a loss of sales, a loss of sales leads to a loss of jobs, in production, transportation, advertising, sales personnel, maintenance personnel, etc, and that is why Trump needs the Fed to reduce interest rates.
However reducing interest rates will only affect the national market, it will reduce the interest rates the Fed charges member banks as they purchase government securities, which they use as their fractional reserve base, the base that they use when they loan (and thus create) money, when they approve a mortgage or you swipe your credit card.
A reduction interest rates has nothing to do with the interest charged on your credit card balance
And nothing to do with the interest on government securities (Treasury bonds and bills), they are sold to the Association of Primary Dealers in Government Securities, which then sells them to the Fed, institutions and overseas investors (sovereign funds and Central banks) They are printed with a Yield but as the demand decreases, the discount price also decreases, in other words they are sold at discount, and if the rating drops lower the discount price further increases
Trump is too stupid, too ignorant, he doesn't know this stuff,so he is being advised, by who? Bessent?
Trump apparently believes that by dropping interest rates, he is going to spur consumption, and give an illusion of prosperity, but his policies (immigration, tariffs, social/political like SNAP) are hurting the economy
Not to fear though, his base, farmers, rural America, the heartland which is MAGA remain firmly in the cult, their quality of life may degenerate, but at least he is winning the culture war, saving them from the threat of. Spanish speaking brown people and that enemy to be feared above all else. the gransgendered.
Right now, the American voter has stumbled into the clutches of a leader who is totally immoral and driven by lies, greed, racism, and fear. The entire administration is corrupt, taking bribes from everyone and disregarding laws. They have captured a cult following by using racism and religion wrapped in the flag. They are well funded by a group of entitled billionaires who want to own everything.
But this is not what most Americans want. We have to openly stand in opposition, make sure we have free elections, and irk together to crush this fascist/religious MAGA movement.