IlluMyFi

Trump's Treasury Pick Sees A "Global Economic Reordering" Authored by James Rickards via DailyReckoning.com,President Trump’s pick for Treasury Secretary, Scott Bessent, has stated that he believes the world is on the cusp of a “global economic reordering”. And he would “like to be a part of it”.He has hinted at the need for a new international agreement on the level of the famous Bretton Woods Agreement of 1944. Bretton Woods, of course, established the world monetary order over 8 decades ago.It sounds like Bessent is thinking big. He will certainly need to, given the challenges the Trump administration will face over the next four years. Trump will come into office at a key moment in American history, and his administration’s decisions will echo over the coming decades.The world order is indeed shifting, and if America is to thrive going forward, major changes will be required. “Economic surgery”, as Bessent refers to it.Bessent has a deep understanding of international trade and finance. Along with George Soros, he famously profited from “breaking” the Bank of England while betting against the pound in 1992.He also worked closely with Stanley Druckenmiller, one of the greatest investors of all time. Bessent eventually ran his own hedge fund and is a self-made multi-billionaire. He represents a substantial upgrade from the more academic Janet Yellen.This man has a deep Rolodex and a wealth of knowledge when it comes to trade and finance.Interestingly, Bessent is a major gold bull:“I think we’re in a long-term bull market in Gold. We’re seeing reserve accumulation by central banks. I follow it closely. It’s my biggest position.”A gold enthusiast as U.S. Treasury Secretary? Interesting. Ironically, gold fell more than 3% when Trump announced his appointment, apparently due to Bessent’s hawkish budgetary credentials.Trump’s pick for Treasury is an advocate of cutting government spending and deficits. During the Biden administration he offered fierce denunciation of economic policies. And he was a strong critic of the Green New Scam, stating that the Biden administration has “repeatedly stretched its legal authorities to direct resources towards favored areas of the economy, often in direct contravention of statute.”3-3-3 and ChinaBessent has proposed the 3-3-3 economic plan for America, consisting of:3% annual real growth3% deficit-to-GDP max3 million additional barrels of oil per dayThese goals offer a nice start. If Trump can pull off all three, we’ll be well on our way to long-term sustainability.Internationally, Bessent sees China as America’s prime competition. He believes the yuan is undervalued and that this is distorting the world economy by favoring Chinese exports. He says Chinese citizens save too much, and don’t consume enough, which is true.A cornerstone of Bessent’s approach will be aggressive trade policies. Tariffs, and perhaps more importantly, the threat of tariffs. Threats can go a long way, as long as they’re prepared to back them up.Tough trade policy will be key to dealing with growing worldwide economic imbalances.Trump’s economic team believes strongly that higher tax rates are not the way forward. Bessent has stated that lower tax rates can actually create higher tax revenue through increased growth. Overall, his views on growth are encouraging:“I decided to come out from behind my desk because I do believe in this election, there’s a big choice and we are going to decide whether we are going to grow our way out of this debt burden.I think we can through deregulation, energy, independence and dominance in the US and a growth mindset. We can get back to growth. I feel very strongly that this is the last chance to grow our way out of this.”This is correct. It is our last chance to change course on the economic Titanic. We’re headed for an iceberg and strong international trade policy and faster growth are the only ways to avoid it.Of course, as Treasury Secretary there’s only so much Bessent can do. But he should act as a positive influence on Trump in terms of policy. It’s a prestigious position, and even with limited policy tools, he should be able to make his influence felt.So far Trump’s economic team is shaping up to be a disruptive and powerful force. We’ll be monitoring this situation closely. Stay tuned. Tyler DurdenFri, 12/13/2024 - 19:15

Sentiment

0.29

Bearish/Bullish

21.12.24 12:15

by zerohedge.com

Yes, Abolish Daylight Saving Time

Yes, Abolish Daylight Saving Time Authored by Jeffrey Tucker via The Epoch Times,For all our lives, we’ve been subjected to forced seasonal time change. Spring forward, fall back. That’s how we learn from childhood how to remember this.We are also told the reason early on. We are extending daylight hours. But only a moment’s thought reveals this to be untrue. The light you gain from a one-hour change is borrowed from later in the day.Government cannot magically make the day longer.It’s like the old joke, supposedly from an “old Indian” who points out that you cannot make a blanket longer by cutting off one end and sewing it on the other.I’ve never met anyone who approves of this massive disruption in our sense of time. Some people prefer Standard Time, while others prefer Daylight Saving Time, depending on their area within a given zone. But regardless, it seems as if everyone agrees that we should stick to one version of time and not change it so brutally in the middle of a year.To be sure, all this became mechanically easier once time became digital. We don’t have to have friends, family, neighbors, and the TV yelling at us to turn back the clock or bump it forward. But it seems as if there are always a few clocks around that do not automatically change, such as the kitchen clock with the battery or the oven clock. Then we have to figure out how the stupid thing works and fuss with it, twice per year.Every study shows that this disruption is terrible for health, as it disrupts sleep patterns and contributes to mental fatigue and even depression. It is associated with increased hospital admissions and even car crashes. This should not shock us. Our bodies are regulated by patterns of the sun, more so than we know.Then there are the missed appointments.If everyone hates it so much, why does it persist? It keeps happening simply because it keeps happening. No one knows how to get rid of it. While there is widespread public hatred of the practice, there is no real lobbying force to do anything about it.Forced seasonal time disruptions are the paradigmatic case of a system that just keeps going on because no one really knows how to stop it, even though no one really likes it.Fortunately, President-elect Donald Trump has an uncanny sense of the public mood. He is the first political figure in my lifetime who has openly blasted Daylight Saving Time and sworn to end it on the federal level. If states want to keep it, fine. My prediction is that it will go away completely. That’s a good thing.Oddly, I find myself thrilled by this! It thoroughly confuses children, dogs, and adults, too. The whole crazy business began during World War I as a way to conserve energy and cause the daylight to arrive earlier in the day for purposes of munitions manufacturing. Others say there were some agricultural reasons, too.The reason that this all began had plenty to do with a fashionable scientism of the time. Elites had come to enjoy toying with all things under the general belief that mechanized schemes cou...