Time for Europe to trump Trump

Morgan WilliamsThere are several potential “bubbles” in several economic regions, one being the EU. If one bursts, they all will. You are proposing that it will be similar to 2008. I disagree. Then it was a four legged chair. Now it’s a three legged stool. One thing Trump understands and has proposed to do something about it is to lower the country’s running costs and expenditure and by increasing turnover. Could work. The EU are doing the exact opposite, by increasing taxes and regulations. Fat chance that that will work. Ask the Germans. Finally, I bet you are kicking yourself for not buying Bitcoins, marketed by your friend Musk, @ $ 5 per coin, so don’t be so prudish about people you dislike making good money with them. The sad thing about all of this is that Jason would love someone like Trump to be running the EU, as long as he isn’t called Trump. Make of that as you will. Me, as a great admirer of Charlemagne, would tend to agree.

“I don’t mean that failing organisation called the European Union” That’s an extremely brave (many readers would say stupid) statement to make, Jason. Are you finally coming round to my way of thinking ?

I know you will all hate me, but rich people love rich people.

I couldn't agree more. But too many fear him. And for some good reasons, but those reasons are woefully short-sighted. Look at the US economy. Up until now, it's been humming along miraculously well (despite trump's assertions that it's the worst since the great depression). US GDP is growing rather astronomically, however, US debt is at an all time high, and growing rapidly. Today, according to many respectable analysts, $1 of US GDP growth costs roughly $2 in government debt. Seasoned economists are beginning to sound warning signals. It's simply mathematically unsustainable. Technically, the US is already in a bubble. Yet, to make it even worse, Trump's economic approach is further pumping that bubble with policy that simply generates money from money. Not productivity, but memes. For example, crypto. It has no intrinsic value other than pumping money into it to increase its value. Another is the overvaluation of stocks, particularly in the tech sector, where many actually aren't generating revenues sufficient to justify the stock value. It's all speculation. Traders and the firms themselves literally making billions out of thin air. How much did musk's wealth increase in the past few months? Hundreds of billions. Trump gained what, 8 billion from his crypto currency? Even Melania gained a few billion from her new crypto. All out of thin air. The alarms being sounded are largely being ignored over the euphoria of making such astronomical gains. It's not unlike the 2008 debt crisis. But this time, it's different. It's many trillions, not billions, and investors from the stagnating economies, particularly Europe, have become heavily vested in the US, for obvious reasons. And the euphoria keeps them there, for obvious reasons. So, as one economist puts it, "the mother of all bubbles" is going to eventually pop, and when it does, 2008 will seem like a fender scrape. (Google it). And what will happen to Trump? He'll no doubt blame it on democrats or illegal aliens from the planet xetox, but he was clearly in charge at the time, and everybody can see that. So, Europe definitely needs to become much less vested in the US, and much more invested at home. It's actually the only way out. But politicians need to quit fearing trump, investors need to wake up from the euphoria, and take action. It's existential, really. And Europe could end up winning big. Or at least not losing as badly.