Categories Finance

Trump’s Declining Legitimacy: Impending Wars and Economic Consequences

It’s Naked Capitalism’s fundraising week. We are grateful to the 661 donors who have supported our mission to combat corruption and predatory practices, particularly in the financial sector. We invite you to join us by visiting our donation page, where you can find options for contributing via check, credit card, debit card, PayPal, Clover, or Wise. Learn more about the purpose of our fundraiser, our achievements over the past year, and our current goal of extending our daily coverage.

Trump’s Power Play and Potential Conflicts

Since the initial challenges to his legitimacy with Russiagate, Trump has navigated his second term with a relentless focus on consolidating power. He has surrounded himself with loyalists in key administration roles and has enacted steep funding cuts to those institutions he perceives as rivals, particularly universities and scientific organizations. His approach also includes aggressive tactics such as ICE raids, which he has likened to deploying occupying forces, like National Guard units in cities like Portland.

As we will detail shortly, Trump appears to be on the brink of instigating military conflicts with either Venezuela or Iran. However, he may have pushed his luck with the US military by summoning high-ranking generals to Quantico for discussions that not only included his peculiar directives but also insinuated the military’s potential involvement against American citizens. It’s important to remember that during his first term, the military defied lawful orders to withdraw from Afghanistan, illustrating a history of resistance against his commands.

Notably, the armed services have traditionally acted as a check against reckless civilian leadership. In the Biden Administration, Secretary of Defense Lloyd Austin has frequently opposed escalation plans for Ukraine, likely by highlighting the limitations of US weaponry and Russia’s possible responses. However, as highlighted by Larry Johnson in a discussion with Daniel Davis, the last instance of a general resigning over illegal orders dates back to the senior Bush administration. The military’s reaction to Trump and Hegseth’s recent remarks was largely unenthusiastic, with reports of shock and concern among the officers present.

New Security Directive and Economic Challenges

Amid these military developments, Trump is attempting to suppress domestic dissent with his national security directive, NSPM-7. As described by Ken Klippenstein, this directive aims to revoke the non-profit status of organizations that do not align with Trump’s views, particularly targeting those labeled as engaging in a sweeping definition of terrorism—essentially any challenge to the Administration’s vision of American values.

Concurrently, the repercussions of Trump’s economic policies are becoming increasingly dire. Payroll processor ADP reported a loss of 32,000 jobs in the private sector for September, contrary to expectations of a slight increase of 51,000. Furthermore, ADP revised its August figures downward, now showing a loss of 3,000 jobs where growth was previously reported. Although there might be an offset in state and municipal employment, the overall picture remains bleak, intensified by the impending delay of Bureau of Labor Statistics (BLS) reports due to a shutdown.

Impact of Tariffs and Economic Outlook

On the inflation front, Trump continues to manipulate tariffs, recently postponing the implementation of 100% tariffs on patented pharmaceuticals. Nevertheless, he is still slated to impose 25% tariffs on furniture and kitchen cabinets, as well as a 10% tax on timber and lumber come October 14. Such erratic tariff policies lead to stockpiling and create uncertainty, thereby deterring investment and expansion.

Unfortunately, these economic troubles could spiral further, particularly if Trump’s authoritarian approach reaches a tipping point. A market collapse, especially one involving AI sectors, would likely trigger a contraction in high-end spending that has so far buoyed the economy. The aftermath could witness a recession and a prolonged period of negative real interest rates, echoing the conditions that precipitated the previous structured credit bubble.

Unexpected defaults among significant creditors could stifle lending, and if enough banks incur losses, a financial crisis could ensue. Unlike the subprime crisis, where risks were concentrated in specific sectors, the current situation encompasses a wider array of loans, involving numerous non-bank lenders, which adds layers of complexity and opacity.

Military Reactions and Potential Conflict

Returning briefly to the military’s response to Trump and Hegseth’s pronouncements, discussions among commentators have focused on the eerie silence from high-ranking officers during the presentation. As Judge Napolitano and Colonel Karen Kwiatkowski noted, the atmosphere in the room was notably deadpan, with attendees seemingly taken aback by Trump’s lack of knowledge.

In another interview, Larry Wilkerson characterized the military’s response as strangely stoic, noting that the audience refrained from displaying emotional reactions. This absence of visible dissent raises concerns about the military’s readiness to confront further authoritarian encroachments, particularly with looming war pressures.

Simultaneously, the US is repositioning military assets in the Middle East, echoing pre-war scenarios reminiscent of previous conflicts. Reports indicate the deployment of substantial military resources, including repositioning jets and heavy munitions, with speculations arising about the timing of potential strikes, particularly against Iran.

Conclusion

The increasing militaristic posture and authoritarian tendencies of the current administration pose serious questions about the trajectory of US foreign and domestic policy. As tensions escalate, the potential for conflict looms large, significantly impacting both the nation and innocent bystanders caught in the midst. The profound implications of these developments require vigilance and scrutiny from the public and military alike.

Print Friendly, PDF & Email

Leave a Reply

您的邮箱地址不会被公开。 必填项已用 * 标注

You May Also Like