I've been pondering recent government intervention in the private sector
and pernicious threats to the Federal Reserve's independence.
This is not how capitalism should work in developed countries, particularly the United States!
The following excerpts are from a very informative
Barron's story by Reshma Kapadia.
"Investors have typically penalized emerging markets such as Turkey, Argentina,
and China due to concerns about the independence of the central bank,
government intervention in the private sector, and rampant overspending.""Now economists and strategists are raising similar concerns about the U.S.,
which has historically been the paragon of a developed market.
They see unnerving parallels to emerging markets in the actions that President Donald Trump is taking
in his second term, as he uses the power of the White House in unconventional ways to swiftly upend
geopolitical and economic norms.""In just the past two weeks, Trump has put new pressure on Federal Reserve Chair Jerome Powell
to cut interest rates, warned judges to not rule against his tariffs, fired the head of the Bureau of Labor Statistics
after unflattering revisions to job numbers, called for the ouster of the chief executive of Intel,
and sought unprecedented concessions from companies and countries that want to access U.S. markets
or avoid export restrictions."https://www.msn.com/en-us/money/markets/trump-s-emerging-market-behavior-is-unsettling-investors-how-it-could-hit-markets/ar-AA1KuCLB
Comments
"A generation ago conventional wisdom held that as China liberalized, its economy
would come to resemble America’s. Instead, capitalism in America is starting to look like China."
"Recent examples include President Trump’s demand that Intel’s chief executive resign;
the 15% of certain chip sales to China that Nvidia and Advanced Micro Devices will share with Washington;
the 'golden share' Washington will get in U.S. Steel as a condition of Nippon Steel’s takeover;
and the $1.5 trillion of promised investment from trading partners Trump plans to personally direct."
"This isn’t socialism, in which the state owns the means of production.
It is more like state capitalism, a hybrid between socialism and capitalism
in which the state guides the decisions of nominally private enterprises."
"China calls its hybrid 'socialism with Chinese characteristics.'
The U.S. hasn’t gone as far as China or even milder practitioners of state capitalism such as Russia,
Brazil and, at times, France. So call this variant 'state capitalism with American characteristics.'
It is still a sea change from the free market ethos the U.S. once embodied."
https://www.msn.com/en-us/news/world/the-u-s-marches-toward-state-capitalism-with-american-characteristics/ar-AA1KibTC
With that mindset he regards the heads of all other countries as being similar "executives", and therefore "competitors". This explains his appreciation of other "executives" who run their countries in a similar manner.
Viewed from this perspective there's really no contradiction between his animus towards China as a competitor, and his admiration for certain aspects of Xi Jinping's leadership.
The same thing applies to Russia, North Korea, Saudi Arabia, and any other country with a leader of similar mindset.
I think OJ's summary above hits the nail on the head with "He treats the United States of America as if the entire country is nothing more than his private company". And he raids the company's war chest to the detriment of it's shareholders (all US citizenry).
2+2=fish. (Stole a line from "The Big Short.")
Bold added:
https://www.newsweek.com/donald-trump-approval-rating-polls-millennials-2113610
an associate professor of political science and director of the Centre on US Politics
at University College London, told Newsweek."
Trump is all hat and no cowboy regarding issues "regular" folks consider important.
I wholeheartedly approve of the millennial's disapproval!
Suppose I might request a more positive attitude. Going down ….