- Porter's Daily Journal
- Posts
- How America Ends
Trump’s Attack On Wall Street Will Trigger A Civil War
What Happened Last Time A President Threatened Wall Street
This is Porter’s Daily Journal, a free e-letter from Porter & Co. that provides unfiltered insights on markets, the economy, and life to help readers become better investors. It includes weekday editions and two weekend editions… and is free to all subscribers.
The dollar-based, global financial system has provided America with an “exorbitant privilege”… Global banks will not see the U.S. as a safe haven forever… The dollar could lose its standing as a reserve currency… Andrew Jackson followed this path 200 years ago… Kinsale’s earnings and a special dinner invitation… |
Table of Contents
Half of our subscribers support U.S. President Donald Trump’s tariffs and trade war.
Why? Because Trump says his policies will end what’s been happening in the U.S. Over the last 50 years, untethered from any fundamental limit (as existed before 1971 under the gold standard), the U.S. government has created an unimaginable amount of debt – more than $30 trillion in new Treasury bonds!
And banks around the world, using these bonds as their reserves, have in turn created unfathomable amounts of new money.
This dollar-based, global financial system has provided America with an “exorbitant privilege” – we are the only country in the world that can print money to settle our debts, including debts to our foreign trading partners.
That privilege – exchanging pieces of paper for valuable commodities and goods – is like a ring of power: it inevitably corrupts. And it has led the nation to outsource virtually everything. As a result, it’s left the U.S. economy a shriveled Gollum that can no longer compete in most industries.
But that’s not the worst outcome.
The system is fundamentally powered by government debt. The more the U.S. government borrows, the larger the world’s banking system grows. The result is more money being created. This never-ending spiral of debt and inflation – boom, bust, and bailout – has enabled a tiny cadre of government-connected financial elites (Goldman Sachs, BlackRock, Apollo Global Management) to amass massive wealth and power, all funded by leverage that couldn’t exist without the government’s explicit support.
And so, while you’ve worked for the last 50 years to merely sustain your earnings power, the elites have used their virtually unlimited access to credit to profit massively from endless inflation.