Trump Transforms the World
He's on top of the world now and changing everything we thought we knew about how things work.
Of course, Trumpworld is sinking rapidly into recession at the same time prices are rising more quickly under the new Trump Tariffs. So, before getting into Trump’s new ways of wielding global power, let’s talk briefly about the “R” word because recession was forming ahead of Trump, but his economic changes assure it will be a major part of the present transition with his own insignia clearly imprinted in the wax. The transformation into stagflation is well underway because inflation never fully went away after Covid and is about to become inflamed all over again by tariffs:
A sign of the times: In a weird twist, restaurants are rolling out recession pricing to try to keep customers coming. The one catch is that, because of recent inflation, those bargains don’t look like such bargains anymore. Counterpoint, the source for a lot of my Doomer Humor, rarely writes about the economy, but here is what they wrote today:
Fast food has officially priced itself out of being fast food. A Big Mac combo now runs north of $11 in some spots — meaning you could practically finance a used car with what you’d pay to supersize your meal.
McDonald’s, in an act of mercy (or panic), is rolling out “discounted” $8 Big Mac bundles and $5 breakfasts, which is like a pickpocket offering you half your wallet back and asking to be thanked.
Some of McDonald’s rivals are struggling even more—Jack in the Box posted a same-store sales drop of more than 7% in its latest earnings report, its steepest decline in 15 years. A Jack in the Box meal now comes with 7% fewer customers, a side of regret, and includes fries so sad they applied for unemployment.
Chipotle, meanwhile, is losing customers not just to high prices but to stingy burrito rolling. Social media has noticed, and the chain’s once-cool vibe now ranks somewhere between Crocs in 2009 and MySpace in 2015.
Into this chaos strolls Chili’s, suddenly America’s hero. For $10.99 you get an appetizer, entrée, and drink — which, in the current economy, qualifies as a Michelin-star bargain. TikTok can’t get enough of the “Triple Dipper,” mozzarella sticks are flying like currency, and Chili’s is the new prom queen of the restaurant sector.
The moral of the story? Americans are discovering that if they’re going to drop $12 a head, they’d rather do it somewhere with real silverware, free chips and salsa, and the faint illusion of dignity. McDonald’s may lure some back with coupons and combo deals, but for now, the Golden Arches have been upstaged by the neon chili pepper. 🌶️
What that tale really says is that inflation pricing has caught up with them. Tricks like shrinkflation—to hide price increases by giving you cuts in quality or quantity at the same old price—have lost them customers. Retail in the restaurant world is starting to hurt, but it’s partially a self-inflicted wound. The quality was already terrible. Now it’s worse than terrible, and the prices have still gone 40% higher than they were pre-Covid.
Trump the TACO King
Meanwhile, the trade wars and TACO trades never end with Trump. Today, he is threatening to raise China’s tariffs higher than he’s ever threatened before, having recently claimed a deal had been struck. He now swings around and threatens to raise tariffs to 200% if China doesn’t sell us the rare-earth materials we need.
He’s also threatening to raise “substantial” new tariffs on any nation that does not remove digital taxes, which affect U.S. tech giants like Meta, Alphabet and Amazon. So, deal or nor deal in recent months, new tariffs could be coming over digital taxes.
“I put all Countries with Digital Taxes, Legislation, Rules, or Regulations, on notice that unless these discriminatory actions are removed, I, as President [King] of the United States, will impose substantial additional Tariffs on that Country’s Exports to the U.S.A.,” Trump wrote….
“Show respect to America and our amazing Tech Companies or, consider the consequences!” Trump wrote.
So, all the tariff deals that were announced by Trump as done deals are only done until the president comes up with his next demand. The chaos for businesses trying to plot their course continues. The constant slamming around of international trade partners continues. The presidential picking of winners and losers in trade continues. The US is a hostile place to do business these days.
I’m not saying I agree with international digital taxes, which were going to be imposed by Canada, as one example, until Trump promised them higher tariffs if they followed through, so they backed down. However, we can see clearly now that the chaos of tariffs will never end, as Trump has learned they are a very big and effective stick to raise against nations that don’t do his will.
He uses them for different purposes all the time. Even when he claims he just struck a great tariff deal with another nation (which always means one that allows him to tax US companies and citizens more than our trading partners tax theirs without even getting congressional approval for the new tax), new and substantially higher tariffs can be sent right back into play if something else arrises that the mercurial Trump doesn’t like.
Trump the econo-fascist king
Then there is that whole completely novel form of corporate tax the king just invented and imposed by decree. Having just started down this nearly unexplored path, he’s already raising it exponentially. That is the creative new tax of using tax-payer money to buy ownership in America’s largest corporations, whereby companies cede 10% of ownership to the US federal government by the president’s decision to buy the stocks with your money. That means, of course, they pay dividends to the US government in perpetuity. Supposedly good for taxpayers as an investment.
Those dividends would be paid to someone anyway, so it’s not exactly a tax, as it doesn’t increase what corporations have to pay out but just changes who they pay it to, though it is a new revenue source. The real crux of the matter here is that this is a MASSIVE transformation of the American economy toward all-out fascist economics that gives the government far more direct control as a voting shareholder over corporations and the business economy.
If these moves continues to grow, as Trump continues to cajole the Fed to provide unlimited money to purchase US corporations, the economic transformation will have huge economic and political-power and social ramifications. Ten-percent gives the president a substantial bit in the mouths of major corporations. It’s a small part of the company, but a bit is a small part in a horse’s mouth, too. He’ll use it to wield control, just as he does all over the world with tariffs now. Once comfortable with the new idea, he may even increase the share of ownership.
Lutnick said in a statement: “Intel is excited to welcome the United States of America as a shareholder, helping to create the most advanced chips in the world. As more companies look to invest in America, this administration remains committed to reinforcing our country’s dominance in artificial intelligence while strengthening our national security.”
Trump announced on Truth Social that this is a “great deal for America” as the government “now fully owns and controls 10% of Intel.”
Not everyone is a fan. Senator Rand Paul (R-KY) said, “If socialism is government owning the means of production, wouldn’t the government owning part of Intel be a step toward socialism? Terrible idea.”
Conservatives used to care about such things.
Here are a couple of headlines from yesterday on these sudden events that rose out of nowhere to transform America into the worst of good-ol’-boy politics:
Kudlow on Trump Intel agreement: ‘I am very, very uncomfortable ‘
and a new one from today:
The Intel deal came right on the heals of Trump’s Dept. of Defense quietly, but in unprecedented manner, purchasing shares in one of its suppliers. It purchased shares …
“… in the little-known US rare-earth producer MP Materials Corp. — a deal that would make the Pentagon the company’s largest shareholder.”
Said Trump of his great New Deals:
“I will make deals like that for our Country all day long. I will also help those companies that make such lucrative deals with the United States.
“I love seeing their stock price go up, making the USA RICHER, AND RICHER. More jobs for America!!! Who would not want to make deals like that?”
Wow! Even former Trump economist/economic advisor Larry Kudlow hates it. Talk about rank corporatism where corporations are in bed with the government and vice versa and the president picks and chooses the winners in business based on his own whims and personal favorites (with no need for congressional approval apparently) and uses taxpayer money to help drive up the stock values of his favorites! (No doubt making his own massive stock purchases just ahead of those deals, as a man who is immune from any crimes that come from his direct exercise of presidential power, and no doubt counseling his family members to do the same … as the man who can grant them preemptive pardons if any critics complain about Trumponomics where the economy all centers on the Trump famiglia. There is a reason they call him “the Don.”)
Trumpcoin, called $Trump (where the dollar-sign is pronounced as an “S,” I’m sure, after the strumpet that he is), may even become the new coin of the realm by decree as Trump made moves today to take down the Fed, ruler of the old competing currency, by firing one of its heads for doing the exactly same crime he was convicted of doing! It amounts to the start of a currency coup.
Of course, there is really a whole “family” of Trump coins as Melania has her brand; so do the children, all boosted by special opportunities for only the richest of the rich to wine and dine at Mar-a-Lago, the king’s palace, with the king whose face shall be on the new coin of the realm. Cost per plate—minimum $1-million purchase from the new family of coins.
And, of course, the realm is also going to be investing in them directly as part of King Trump’s new “sovereign wealth fund,” licensed by Team Trump and no one else to hold crypto currencies, naturally including the purchase of his own with taxpayer dollars.
Trump to seize national parks for his private palatial development
Not content with the prospects for sometime developing Gaza into the Monaco or Riviera of the Middle East for high rollers, Trump has also announced several times his intentions of developing the United States’ national parks into beautiful resorts with golf courses, etc. … as a private land developer.
We’re going to all live in a vastly different realm than the one most of us grew up in, and some of the sweeping changes in how America does business, does international trade, does politics, weaponizes the government (see noted headlines that follow) and changes national land use for big corporate (and even personal) gain, plus change in the national currency, won’t be easy to undo. The damage will be done, and it will be vast, because a bigger stake in corporations by government also means a bigger stake in the government by America’s largest corporations! (Perhaps especially Trump Corp.)
Economania (national & global economic collapse plus market news)
Money Matters (monetary policy, metals, cryptos, currency wars & going cashless)
Trump 'fires' Fed board member Lisa Cook (for doing what he was convicted of doing!)
Citi Executive Warns Stablecoin Interest Payments Could Drain Bank Deposits Like the 1980s Crisis
US banks lobby to block stablecoin interest over fears of deposit flight
Wars & Rumors of War, Revolts, Hacks & Cyberattacks + AI threats
Rabbis Emerge as Growing Voice of Criticism of Israel’s Tactics in Gaza
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The Age of Robotic Warfare Has Arrived
Trump Trade Wars & Turf Wars
Trump warns of 200% tariff on China if exports are curbed: ‘They have to give us magnets’
Trump vows ‘substantial’ new tariffs, chip restrictions on countries with digital taxes
Political Pandemonium & Social Senescence (socio-political issues & events)
Clearer Images of Large Bruise on Trump’s Right Hand (without makeup) and a New Smaller Bruise on his Left (The one on the L, clearly not from handshaking)
Gorsuch and Kavanaugh warn lower court judges in Trump cases
President Threatens to Investigate Chris Christie (Just a little more weaponization of government against someone who turned against him? A little more lawfare?)
Trump says DOJ will sue California over redistricting, as he celebrates similar Texas effort (Weaponizing government much lately, Trump, by praising Repubs for redistricting in Texas and attacking Dems for the same thing?)
Trump touts ‘great relationship’ with Kim Jong-un as he meets South Korea’s president (Trump loves his dictators, even Rocketman.)
Jacqui Heinrich is drawing attention at Fox News
Deep Domination (globalism, unelected government, unconstitutional government & censorship)
Trump Rages That ‘Biased’ ABC, NBC Should Have Licenses ‘Revoked’: ‘Threat to Democracy’ (A little more weaponization of government against political enemies?)
Calamity, Catastrophe & Climate Craziness
Towering wall of dust rolls through metro Phoenix, leaving thousands without power (Not a calamity by any means or climate craziness, but extreme weather is interesting and makes for cool photos.)
What Climate Crisis? Weather Channel Reports "Record-Breaking Cold" For August
Doomer Humor
Time and time again, we have a potential stable market and economy where, in an alternate universe, the worst thing going on is the potential of an AI Bubble. And that is definitely bad. But this is bad on top of bad on top of bad, sugar coated by an overly enthusiastic investor market.
People don't want instability. Goodness knows I don't. There are no safe havens left. And the markets keep following this pipe dream of a stable, conservative (big or little C) environment to skyrocket in and keep their winnings.
This isn't Reagan. And no Republican any longer follows conservative economics.