All Hail the Great MAGA King!

We’re laughing at you, Joe. Not with you. May 27, 2024 [WEBSITE]( | [UNSUBSCRIBE]( All Hail the Great MAGA King! SEAN RING Dear Reader, Greetings on this fine Monday. I wrote this just over two years ago, and since we’re off today, it’s worth revisiting. It’s completely relevant to the upcoming election in November. Enjoy your day and see you tomorrow! --------------------------------------------------------------- Let’s turn our attention to the “adults in the room.” Yes, that lame excuse of an executive team known as the Biden Administration. Don’t worry, I’ll get to all the reasons I think Trump screwed up and ultimately lost the presidency in 2020. But as I thought back to [my bar conversation in Rome six weeks ago]( I still have no idea how anyone can think the US in particular, and the West in general, are in a better position than they were under Trump. It’s a staggering bias, and as my good friend and Rude reader Michael said, “Eventually subjective value is trumped by reality.” We’ll know for sure in November, I suppose. So today, let’s have some more fun at the expense of What’s-Left-of-Joe. Why Trump Lost First, we need to get something straight. As much as I hate to say it, DJT deserved to lose the 2020 election. His own bias - he’s scared to death of germs - allowed him to make the dumbest decision of all: to shut down his own country. You could tell his initial inclination ran against it, but like UK Prime Minister Boorish Johnson, he was frightened into doing something utterly contrary to his own instincts. Then he backed the vaccines, about which we’re only now finding the real truth. Here’s what he should’ve done: told the sick, infirm, and immunocompromised to stay home without fear of getting fired, and the healthy to go to work, perhaps get sick, get better, and then get back to work. This health “crisis” would have been over years ago. Literally. On that mistake alone, he should’ve been - and was - shown the door. But he also blew out the deficit, increased the national debt, and allowed his incompetent Federal Reserve Chairman - yes, the one who just got another four-year term - to poop the bed and cut rates when he should’ve continued to hike them. Again, this economic and financial crisis wouldn’t be as massive as it is today. As for his “mean tweets” and the “untruths,” I couldn’t give a toss about them. As if any politician has ever told the truth! With all that said, how have we done with the “adults in the room” back in charge? [Supercomputing Firm Partners with the World’s Leader in AI]( NVIDIA – the world’s leader in AI – just release their biggest AI innovation, known as the “X Chip,” and could easily send every single AI stock surging. But that doesn’t mean you should invest in any AI stock… Instead, there’s one tiny AI firm that has partnered with NVIDIA on this X Chip. Rumor has it that Nvidia will name this company during the official rollout of their new microchip… Which James Altucher believes will send this tiny stock on a 100X run, growing 10,000% in 2025. That’s why he advises you to invest in it today, before the official rollout. [Click Here To Learn More]( Since Biden Took the Reins It’s safe to say Joke Biden is the single worst president since that bastard Woodrow Wilson. (Wilson is the one who got America into World War I for no good reason at all, only to increase state power.) Biden closed the Keystone XL pipeline to appease the arts majors who have no idea how things work. Biden left Afghanistan a complete mess and gifted $85 billion in military equipment to the Taliban. Inflation has been utterly insane under Biden. No, this isn’t the “Putin Price Hike.” No one bought that lame excuse anyway, further proving the point that “the left can’t meme.” Biden’s odious position on Russia/Ukraine - essentially, fight to the last European - is the main price driver in the world economy right now. This may starve millions of poor people who depend on Russian and Ukrainian wheat to feed themselves. Oh, and we can’t get any of the goodies that Russia exports in bulk, like potash, vanadium, cobalt, palladium, and nickel. And, oh yeah, oil and gas. His policies are not only asinine, but insanely expensive. The Imposition of Costs And this is where it gets sticky for Uncle Joe. His policies are costly. In a democracy, people long ago figured out that you can vote for a greater share of the public purse. And they’ll surely do “vote harder” this November. What that will entail this time around may not be a direct acquisition of public funds. It may be a demand for policy changes that lower costs for consumers. Potentially demanded policy changes may include a complete opening up of the economy without hindrance, a return to “normal” interest rates regardless of a stock market hit, and a u-turn on America’s costly Russia policy. I’ve written many times: you can do whatever you want with interest rates at zero. There’s simply no penalty for wrong moves. That’s why zero rates are so attractive for incompetent politicians and businesspeople. But as the bond market vigilantes return, this position is becoming untenable. Biden doesn’t want to be forced into making these changes, so he’s gone on the attack. The Great MAGA King Misfire And like so many times before, Joe Biden took aim and shot himself in the foot. At a Democrat fundraiser on a Friday over two years ago, in a bumbling, rambling speech, Biden referred to Trump as the “Great MAGA King.” Of course, the left thinks it’s a genius insult. Politico writers, and other people who laugh without moving their mouths, think Biden “sharpened his attacks.” Yeah, his attack was about as sharp as a marble. Inevitably, Trump took the grapefruit Biden tossed him and smashed it out of the park. As Google is a crap search engine now, I used the Brave Search to find this: Credit: [Brave Search]( Great MAGA King merch litters the t-shirt shops right now. On Truth Social, Trump himself posted this: Credit: [Twitter]( (ironically) Why Biden and his crew think he landed a punch with this is beyond me. More than once, I read the comment, “If Trump is the Great MAGA King, then I’m his loyal servant.” And this sentiment will only become more prevalent as Powell hikes and the middle class’s economic pain becomes more acute. The likeliest scenario is that Biden gets his head handed to him in November. This opens the door for a Trump/DeSantis or Trump/Vivek ticket for the Republicans in 2024. Trump can play golf while his Veep runs the country. Then, he’ll take over in 2028 and get two terms. It’s a plausible scenario that gives the Democrats the vapors… and for good reason. Conceivably, they wouldn’t - and perhaps couldn’t - get back into the White House until 2036. Wrap Up Though his Yes Men are telling him how pithy his comment was, President Biden gave 45 a rallying platform and a massive lift by naming him the Great MAGA King. It was stupid to say if only by directing his attention to his vanquished predecessor. There was no reason for it - call it an unforced error. And now, Biden will have to deal with the consequences of his own goal until November 2024. Until tomorrow. All the best, Sean Ring Editor, Rude Awakening X (formerly Twitter): [@seaniechaos]( Rate this email Like Dislike Thanks for rating this content! Looks like something went wrong. Please try to rate again. In Case You Missed It… De-dollarization Proceeds Apace SEAN RING “You need a deep bond market to abandon the USD!” Or so goes the argument. But if the BRICS have found another way? Let’s examine these charts to see if the BRICS are moving towards a new currency or just trading without the dollar as an intermediary currency. Chinese Gentlemen Prefer Bonds First, let’s look at China’s USD bond holdings: Next up, from Raoul Pal, a hedge fund manager and writer of Global Macro Investor: I posted these the other day but I'm still not sure people yet understand them... and they are the MOST important charts in all of macro/crypto.... Aging population = lower GDP growth Lower GDP = higher debt to service the aging population. With high debt and low growth, the Fed needs to create liquidity to service the debt = debasement Demographics are destiny until the robots + AI scale (2030+), thus debt up, liquidity up = number go up. It really is that simple with a longer-term time horizon. This is The Everything Code at a very high level. Here are the accompanying charts. I’ll talk you through them. Source: Raoul Pal, Global Macro Investor In the above chart, the Fed’s balance sheet (black) is plotted against US Government Debt as a percentage of GDP. They track almost exactly. The Fed’s buying power is required to service the aging population (baby boomers). But the Fed’s debt service is the very definition of currency debasement. Source: Raoul Pal, Global Macro Investor If you invert the debt-to-GDP chart, it tracks with the falling US Labor Force Participation Rate. That’s “the number of people in the labor force as a percentage of the civilian noninstitutional population that is either working or actively looking for work.” A higher participation rate is preferred, but that’s difficult with an aging population. Now square all that will the school of thought that says, “China can never give up the dollar because of its deep bond market.” [Elon Musk’s NEXT Billion-Dollar IPO Revealed by the end of 2024?]( First, Paypal’s IPO made him a multi-millionaire… Then Tesla’s IPO made him a billionaire… Now, his NEXT big IPO could make him a TRILLIONAIRE. And for anyone who knows how to follow Musk as he potentially takes this new company public… The gains could be life-changing. [Click Here To Learn More]( You Need the US Bond Market… Or Do You? The above makes sense until you realize no one wants to buy into a four-year bear market in Treasuries. Credit: LinkedIn, Charles-Henry Monchau Christian Gerlach, a portfolio manager, had this to write on LinkedIn: Renminbi dominance over the US dollar will not be possible under normal circumstances. Only an exceptional scenario will do. It is a common misconception to think that authoritarian China can achieve global currency dominance through economic might and trade influence alone. Historically, this is not how leading currency status is achieved. The truth is that only a fundamental undoing of the current geopolitical order could enable Beijing to impose currency dominance, albeit at an enormous cost. Here's why: The crucial factor for achieving currency dominance is the depth of a currency's financial markets. The dominant global currency does not necessarily have to be issued by the country with the largest GDP or share in international trade. For instance, at the turn of the 20th century, the US had surpassed the entire British empire in economic size, yet US firms preferred to issue bonds in sterling. A country aiming for currency dominance needs a vast and homogeneous pool of safe, government-backed securities. Over the past 400 years, all the dominant currencies emerged through such a pool: the Dutch florin, the British pound sterling, and the US dollar. From this perspective, China's debt markets still face significant hurdles. Beijing needs more liquidity, security, and size to effectively challenge the US dollar's status. The possibility of overcoming these obstacles via peaceful means is minimal. So, will today's situation never change? History has shown that military conflict is often essential for transitioning from one collapsing currency liquidity pool to a new, deeper one. The shifts from the Dutch florin to the pound and from the pound to the dollar were both triggered by war. After 1945, the US acquired the largest pool of safe government debt globally, paving the way for dollar dominance. Therefore, military conflict is critical because it is the ultimate harbinger of default risk. Time and time again, the only series of events that destroyed a dominant currency's debt liquidity pool and gave rise to a new one had nothing to do with peaceful economics - quite the opposite. It’s hard to argue with history. But what if Beijing found another way to trade without its renminbi (or yuan) becoming the world’s reserve currency? Exploring Alternatives to the US Dollar for BRICS Trade As the global economic landscape evolves, the BRICS countries—Brazil, Russia, India, China, and South Africa—are exploring ways to reduce their reliance on the US dollar for trade. While the idea of creating an alternative currency has been discussed, several other strategies these nations can employ to achieve this goal. Bilateral and Multilateral Currency Swaps One effective approach is establishing bilateral and multilateral currency swaps. These agreements allow BRICS countries to exchange their currencies directly, bypassing the need for the US dollar. By setting up swap lines, central banks can facilitate the exchange of local currencies, promoting smoother trade relations. Local Currency Trade Encouraging and facilitating trade agreements that enable payments in local currencies is another viable option. This approach requires robust financial systems, mutual trust, and mechanisms to manage currency risk and volatility. By trading in their own currencies, BRICS nations would strengthen their economic ties while reducing dollar dependency. Gold and Commodity-Backed Payments Utilizing gold or other commodities as a medium of exchange can provide an alternative to dollar-based transactions. This method involves agreeing on commodity prices and using them to settle international trade balances. While it may seem old-fashioned, commodity-backed payments can offer stability and trust in uncertain times. Regional Payment Systems Developing and utilizing regional payment systems is a strategic move for BRICS countries. China's Cross-Border Interbank Payment System (CIPS) and Russia's System for Transfer of Financial Messages (SPFS) are examples of platforms that can be used to settle international payments without the need for the US dollar or SWIFT. These systems enhance financial sovereignty and reduce exposure to dollar-related risks. Digital Currencies and Blockchain The adoption of digital currencies, including central bank digital currencies (CBDCs), presents a modern solution. Digital currencies can facilitate direct currency exchanges and reduce dependency on the US dollar. Blockchain technology, with its secure and transparent transaction capabilities, offers an innovative way to conduct international trade in local currencies. Barter Trade In certain scenarios, countries might resort to barter trade, where goods and services are exchanged directly without using any currency. Although less efficient and more complex, barter trade would serve as a practical means to avoid the US dollar in specific circumstances. Diversifying Reserve Currencies Another strategic measure is diversifying foreign exchange reserves to include a mix of other major currencies such as the euro, yen, and yuan. By doing so, BRICS countries could support trade in these currencies and reduce their reliance on the US dollar. Wrap Up Implementing these strategies requires significant coordination, trust, and infrastructure development among BRICS countries—there’s no guarantee of any of that. Overcoming legal, regulatory, and market challenges is essential to creating a reliable and efficient alternative to dollar-based trade. As BRICS nations continue to innovate and collaborate, the global economic order will witness a shift towards a more diversified and resilient trading system. Have a wonderful, long weekend! All the best, Sean Ring Editor, Rude Awakening Twitter: [@seaniechaos]( ☰ ⊗ [ARCHIVE]( [ABOUT]( [Contact Us]( © 2024 Paradigm Press, LLC. 1001 Cathedral Street, Baltimore, MD 21201. By submitting your email address, you consent to Paradigm Press, LLC. delivering daily email issues and advertisements. To end your Rude Awakening e-mail subscription and associated external offers sent from Rude Awakening, feel free to [click here.]( Please note: the mailbox associated with this email address is not monitored, so do not reply to this message. We welcome comments or suggestions at feedback@rudeawakening.info. This address is for feedback only. For questions about your account or to speak with customer service, [contact us here]( or call (844)-731-0984. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. 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