Trump: The Privatization of Capital
Written by Alfonso Elizondo
Created on Friday, November 25, 2016, 12:12
In these days after the US presidential election there is a kind of power vacuum between Obama and Trump who will assume office on January 20, 2017. Obama has no choice but to leave office without managing to establish the legality of his primary national plan for medical and hospital services for the poor, and his foreign policy plan to achieve effective control of the territories of the Middle East and North African countries. There is, however, no disputing the fact that he achieved financial recovery and created jobs in the country in his last two years in office.
On the Trump side, we find the war-loving ‘hawks’ in the style of Cheney and Bush, with Mike Pence leading the way, while on the other side are the speculators who are betting on winning NATO military contracts. With the high operating costs that would be incurred by both groups, they could in a very short time cause an economic collapse in the United States greater than the Great Recession of the 1930s.
This problem is already developing in the US and has exploded with the European Union’s Deutche Bank which has a huge debt of mostly unbacked derivatives, amounting to between 45 and 70 trillion euros, the equivalent of some 15 times the GDP of Germany. This German bank is the main lender to Trump who does business in more than 20 countries to support unemployed, middle-class and very poor workers. The bank’s debt grew significantly after the Washington Consensus, under the rubric of neoliberalism and globalization which lowered the wages of workers while increasing the profits of the owners of private companies.
This situation is creating very serious problems for the immediate future of Germany and the European Union. US financial control agencies have come up with a fine of about $14 billion to be imposed on Deutche Bank that would cause its immediate collapse given that with all its assets it could barely cover a third of that fine. The bank is being fined for misleading investors between 2005 and 2007 with toxic mortgages that totally lacked any real backing.
As a result, the German Government will have to transfer those costs to other European citizens who rely on Deutche Bank. This is very serious for the EU because in several European countries, starting with Italy and Greece, their banking policies do not provide good support and they all have high external debts. According to the IMF, this same situation facing Deutche Bank exists in HSBC and in the Swiss Bank, both of which also failed the Federal Reserve’s stress tests performed earlier this year. According to the world’s leading financial news agencies, Deutche Bank is under criminal investigation, not only in the United States but also in several other countries, and this case is being compared to that of Lehman Brothers between 2005 and 2007.
According to these leading financial news agencies, Trump’s infrastructure project is not only designed to generate jobs through the immediate investment of a trillion dollars in the US, but also to privatize roads, bridges, water and electricity networks, hospitals, schools , airports and railways. According to figures from the Compressed Gas Association (CGA), about 300 million passenger vehicles travel on the 6.5 million kilometers of US territory, putting the country in first place globally in emission of greenhouse gases that are responsible for much of the global warming created by humans.
So the main Trump plan will not bring any benefit because it is designed to have the entire population of the United States travelling in cars, to deplete the minerals and metals remaining in the earth’s crust, in addition to burning fossil fuels to the point where the ecological imbalance is irreversible. The Trump plan does not include public transportation that is electrified or powered by any clean energy. It is a kind of madness that is unprecedented in the history of the United States, where a President tries to transfer the public wealth of a country of more than 300 million people to his family and friends and also to a small sector of the 20 million Of Americans who voted for him in the recent elections.
Addendum: I have no idea how the whim of a mentally ill individual like Trump may influence the rest of the world, but it will definitely be a very negative influence that would completely alter the present world order and could lead to military, trade, and financial problems.
The only thing that is obvious to everyone is the decline of the American empire and of the entire Western World. Moreover, the way is now clear for China and its ally Russia to become the leaders of the world today.
I still do not understand the silence of the billionaire elite who control the Fed and the money in circulation around the world and who own the largest fortunes in the world.