Page 179 - TrumpsEconEra_Flat

Trump’s Economic Era

With the closing of the gold window, nations
could no longer demand payment of gold in return for
U.S. dollars. Governments replaced the fixed rate
system with a freely flexible system where the market
determined values. It was at this point that many
countries lost confidence in the U.S. economy because
of Washington’s prolific social programs and chronic
deficit spending.

CREDIT CREATION and GROWTH

Now, instead of countries seeking growth policies,
growth took a back seat to credit creation and
consumption. There is a grave danger that this credit-
fueled economic paradigm will break down.
Richard Duncan, in his book, The New
Depression, explains that we have creditism and not
capitalism. Creditism has created extraordinarily rapid
growth for decades, but it has hit its limit to produce
more growth because we pay our national debts by
creating money.
Creating new money is

Creating new money like a person taking drugs. A
is like a person drug addict may feel good for
taking drugs. a while, but eventually the
craving returns, except this
time it takes higher doses to
attain the same feeling. When no amount of drugs can
bring back that feel-good state, the only cure is an
agonizing and painful withdrawal process. Likewise, at
some point, quantitative easing will be ineffective, and
America will experience withdrawal symptoms.

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