Party Like There’s No Tomorrow – There Might Not Be

 

Dubai Token2049

The May 3 Wall Street Journal describes a bacchanalian bash—unimaginably over-the-top—in “What Happened in Two Days at a Very Wild Crypto Party. Arrests from just a year ago are forgotten. Executives ride zip lines, champagne flows, and deals are struck in Dubai.”

After 100 days, Trump’s presidency is essentially a revenge tour aimed at wrecking the institutions we’ve relied on since World War II. Instead of stability, we have chaos—fueled not by coherent strategy, but by his seemingly impulsive, seat-of-the-pants decisions. It may take generations—if we have that time—to restore public and global confidence in American governance. Behind the chaos stand crafty, avaricious power-seekers, armed with the Project 2025 playbook.

They’ve ravaged the judicial and educational systems, shifted our culture from tolerance to intolerance, and turned Congress and an unqualified Cabinet into obsequious followers. Our international commitments—on trade, the environment, and the defense of democratic allies—have been gutted. We have, in many respects, become the rogue state we once vowed to oppose.

In this sense, Trump’s second presidency represents the most consequential seismic shift in American governance since FDR. But this didn’t happen to us—it happened through us. We hastened it, abetted by a performative “woke” culture that quickly gave way to a reactionary cowboy ethos, supercharged by platforms like TikTok, YouTube, and X that allow anyone to spin their own version of reality, unmoored from fact.

If that were the end of it, we might breathe easier. But the Wall Street Journal article suggests the story only deepens. Beyond the partying at “Token2049,” “the biggest names in crypto and 15,000 of their biggest fans marked a new era of freedom.” Ah yes—“let freedom ring.” But freedom for whom? This is the kind of deregulated “freedom” that enriches the few—like the Trump family—at the expense of everyone else. Quite convenient, when the foxes write the rules of the henhouse.

One marquee attraction: Eric Trump, alongside Zach Witkoff—son of Trump’s Middle East envoy—promoting their company, World Liberty, and its so-called stablecoin, “USD1,” a dollar-pegged cryptocurrency. I don’t claim to understand the technical aspects, so I turn to Wired:

The model is simple: World Liberty Financial receives US dollars in exchange for coins that customers can trade freely in the crypto market. It keeps some of those dollars in cash and cash equivalents and invests the rest in US government bonds—also called Treasuries—which yield interest. The profits of stablecoin issuers depend partly on the going interest rate—right now, short-term Treasuries yield a little over 4 percent—but otherwise scale in a linear fashion with supply. The larger the amount of a stablecoin in circulation, the heftier the underlying reserve of assets from which the issuer can generate income.

How convenient. We’re talking about U.S. government securities—the very instruments that underpin our bloated national debt. About 30% of Treasuries are held by foreign governments or by institutions. The Federal Reserve holds nearly as much. Among other roles, it buys Treasuries to help finance government operations.

And then this torpedo from the Wall Street Journal article: “To whoops and applause, [Eric] Trump said nothing would give him more joy than to see crypto help kill off the big banks that cut ties with his family.”  [emphasis mine]

There it is: the final destination on the Don Corleone Trump revenge tour. About seventy banks were involved in his near personal bankruptcy as well as the bankruptcy of six of his hotel and casino businesses in the 1990s, including Citibank and Chase. These same large banks serve as primary dealers in Treasury auctions. If crypto eclipses traditional banking, the global role of the dollar as a reserve currency is jeopardized. The financial regulatory rules for crypto are being written by those who have most to gain by their easing. 

When the banks have to crawl to Dear Leader, it’s the final nail in the coffin of what was once a flawed but functioning republic.

This article from the March 7 New York Times shows this has been developing right in front of our eyes, as have all his transgressions.  Note the symbolism of the staging:

 

 

 

Our Short-Term National Memory

To illustrate the topic of this entry, only about a month ago the worry was the end of the financial world as Congress was playing political brinkmanship with the National Debt ceiling.  After circling the wagon train, preparing for the worst, hark, the sound of the cavalry bugles at the last minute, Congress agreeing to raise debt levels, extending the issue “all the way” to December 3.  Meanwhile, the financial markets resumed its steady march to the heavens, particularly as the Federal Reserve is between a rock and a hard place, not wanting to raise rates. Clearly, the Treasury cannot afford to pay more interest on the steadily mounting debt.  Short term memory: everyone has conveniently forgotten December 3.  Soon it will be headline material again, a hot potato political issue.

Meanwhile, the Trumpublicans are pleased about the recent elections, demonstrating that their lord and master showman’s prestidigitatorial gas lighting can still opiate the American mind.  Simple formula, tar all Democratic candidates as “socialists” or associate them with the big bad wolf (Critical Race Theory, something most Trumpublicans cannot explain), and equate any reasonable COVID policy with a “loss of freedom.” Nice little sound bites for somnambulistic sheep.  However, no doubt their obedience has been nurtured by the intransigence of the progressive wing of the Democratic Party.

The most serious reminder of our short-term national memory, however, is the upcoming (only two more months) one year anniversary of the most serious domestic attack on our native soil since the Civil War, the January 6^th insurrection.

We all watched it.  Our elected representatives experienced it.  We have the evidence how it was masterminded, what the end game plan was, and several Senators and Congress people who decried it during the immediate following days, now have all conveniently whitewashed it and have allowed the architects of that horrible day, unfettered by consequences, to do it again, perhaps now more “legally” given voting law changes in Republican states, redistricting, appointments of State Election Commissioners who will do what they are told as well as conservative judges at the local levels of Government.

Imagine if this attack was orchestrated by the Duchey of Grand Fenwick – we’d be bombing the hell out of them.

Why our Justice Department cannot swiftly act on this matter defies understanding.  Are our political system and the American psyche so poisoned?  Even our 4^th Estate seems to have left the scene of the crime.  The montage of headlines the day after this egregious breach of democracy was filled with outrage.  Where is it now? 

 

Be-twitched Bothered Bewildered

I’m still recoiling from Meet the Press last Sunday, in particular Chuck Todd’s brief interview with Ted Cruz.  If Donald Trump is a symptom of a malignancy in American politics, Cruz is part of the disease itself. Here’s a brief except from that interview:

CHUCK TODD:

I want you to react to something here that President Obama said at a fundraiser, responding to the tone of Donald Trump rallies. Here it is, sir.

(BEGIN TAPE)

PRESIDENT OBAMA:

And what's been happening in our politics lately is not an accident. For years, we've been told we should be angry about America and that the economy's a disaster. And that we're weak. And that compromise is weakness. And that you can ignore science and you could ignore facts and say whatever you want about the president. And feed suspicion about immigrants and Muslims and poor people and people who aren't like us.

(END TAPE)

CHUCK TODD:

That's the president essentially saying, "This has been happening for years," before most of his term.

SEN. TED CRUZ:

You know, Chuck, Barack Obama's a world class demagogue. That language there is designed to divide us. No, Mr. President, we're not angry at that. We're angry at politicians in Washington, including you, who ignore the men and women who elected you. Who have been presiding over our jobs going overseas for seven years?

Who have been cutting deals that are enriching the rich and powerful, the special interests and the big corporations, while working men and women are seeing their wages stagnating?  And he talks about immigrants and Muslims. Mr. President, we're mad at a president who wants to bring in Syrian refugees who may be infiltrated by ISIS. And you're unwilling to be commander in chief and keep us safe. So don't engage in attacking the people, like the president did.

Wow, it takes a demagogue to call someone a demagogue.  Psittacisms for the masses, from both Cruz and Trump.

It was the self proclaimed intention of the Republicans to be the Party of No at the onset of Obama’s Presidency and then gathering even more momentum with the first mid-term elections. 

This brought Mr. Cruz into power as a leading Tea Party advocate. His obstructionist voice has been a leading one during his Senate occupancy, effectively shutting down any hope of compromise.   No wonder the President had to resort to his much criticized use of Executive Orders, although his use of such orders has averaged less than George Bush’s.

 

And, yet, there is the whiff of truth in some of what he says, no, not about Obama being the cause, but about a long-building anger, much longer than Mr. Cruz et al would like it to be known.  Bernie Sanders taps into similar angst.  At the heart of that fury is the American socio-economic landscape which has changed over the years, but you could count them in decades.  The last seven years were more of the same for the disenfranchised middle class, watching their earning power and employability decline in relation to better educated, higher income families. Consequently, wage inequality has grown, but this has been going on for thirty five years, well documented by the Economic Policy Institute (EPI)

 

Unfortunately, there is no easy panacea for this other than for our country to come to grips with the reality of today’s world.  The industrial revolution has morphed into a cyber revolution, where geographic borders do not exist.  Workers are being displaced by technology, robotics.  It is not a question of bringing manufacturing jobs home any more; it’s the challenge of educating workers in new skills.  Any politician who holds out the trade war card is delusional, playing a simplistic card to get elected.  We’re a country after a quick fix and it sounds good, make “tough” deals with China, tax their goods sky high.  Wait until the quick fixers see the new prices at Walmart.  None of them will like that either (unless a President Trump makes Walmart reduce their prices! :-)

Many of the recommendations suggested by the EPI for turning the tide of income inequality were also advocated by the Obama administration but have been cut off at the knees by the Party of No, one for example enacting public investments in infrastructure to create jobs.  And there are others.

But nothing rings truer for the disenfranchised than the Trumperian throwaway that in 15 minutes he’d solve the trade deficit.  Our trade agreements have evolved over years of negotiations and it’s not that simple Donald (or Ted).  Admittedly the currency manipulations on the part of governments all over the world throw aspects of trade agreements under the bus, each region fighting for a larger piece of a pie that is growing only oh-so-very-slowly.  We have the “advantage” of having (at least seemingly) the currency of last resort, and this is yet another factor in the strong dollar, but that further contributes to making foreign goods cheaper and our exports more expensive.  It is the inverse of the early 1980’s when the dollar was cheap and interest rates were double digits, inflationary fears running amuck.  Today there is little inflation with whiffs of deflation.

This is all in the wake of the most dangerous economic crisis we have faced since the Great Depression.  In the absence of Congress being able to agree upon fiscal policy the temporary fix was radical monetary policy engineered by the Federal Reserve.  Someone had to act.  But the Fed now is blamed by the Party of No.

Nonetheless we are left with debt; it could have been less with sounder fiscal policy, but that was not to be.  Where would Ted Cruz’s flat tax plan and tying the dollar to the Gold Standard leave us?  And the Trump solution?  “Trust me, I make good deals.”  Whatever that means.

For anyone who has read thus far, I leave the reader with an “out-of-the-box” review on the subject (hat tip to my son, Chris).  It is the most cynical analysis I’ve ever read, authored by “Cognitive Dissonance,” Down the Trump Rabbit Hole - Manufacturing Consent. 

It attempts to explain Trump in light of the “system” which “Cognitive Dissonance” equates to “The Empire,” its purpose to always move forward, to consume. Everyone within the empire serves the Empire, including its individual and corporate ‘citizens’. This especially holds true for its upper level civil ‘servants’, political appointees, elected office holders, state and federal judges, the military at all levels including ‘civilian police officers, the oligarchs and elites. And most importantly, the President of the United States. All are beholden to the Empire and constitute the court of the Empire. While the president may be considered the Chief Executive Officer, the president works for the Empire and is controlled by the Empire’s court. The power of the president flows up from the Empire’s court, not down from the president

So how does this relate to The Donald?  When your credibility is suddenly called into question and people begin to seek alternative ‘authorities’, give the people what they want…though not exactly what they want, just what you have conditioned them to believe they want. Or as is the case with our current situation, since anyone who is presently an authority is not to be trusted, give people the antithesis of the existing authority structure.  The Donald.

“Cognitive Dissonance” goes on to argue that as Clinton is a “child of the court,” she cannot deliver what the Empire’s subjects perceive to be needed for the Empire’s very survival.  Only the anti-establishment holds that power but expect Trump to concoct some mighty reforms which will bleed and permanently weaken the middle class even further. You didn’t expect the elite and court to actually pay for the reforms…did you?

I would like to believe that this cynicism is merely an exaggeration of the truth, that we’re better than that, and reasonable people can come to long term solutions.   Yes, more and more time will be needed as the can is kicked further down the road.  To deal with the national debt we first have to work towards a balanced budget.  A tall order in today’s world, one that will exact pain, particularly for the Plutocracy, but in the end for us all.  We’ve lived long enough by borrowing against the future.  Do we have the fortitude, the patience, and above all the willingness to make compromises? 

If not, “Cognitive Dissonance” might be right on the mark.

On the other hand, “Stonekettle” has hit it out of the ballpark once again.  I’ve mentioned this blog before.  Its views are compelling, brutally honest, no holding back for Jim Wright, the blog's author.  His take on the topic was published in two parts, the latest being his The Latter Days of a Better Nation, Part II.

 

Far too many Americans still think of Trump’s campaign as a joke and they keep waiting for the laugh ... but somehow the punch line never comes.

It never comes because, you see, the joke is on us. All of us, conservatives and liberals, republicans and democrats and the independents.

In effect, to understand Trumpism, look in a mirror.  We’ve given rise to him.  As Wright concludes, if you want a better nation, be better citizens.

I thought I was done with this.  In the process of posting this entry President Obama was delivering an eloquent speech, nominating Merrick Garland to the Supreme Court.  Mitch McConnell now responding in the background, with “let the people decide.”  We did in 2012.  So, the beat goes on….