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Stay Hungry. Stay Foolish.

A blog by Leon Oudejans

The Long Con

9 October 2016

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With the knowledge of hindsight, Donald Trump’s attacks on the Federal Reserve‘s independence finally made sense. Despite most polls claiming his opponent would win the 2016 Presidential Election, disbelief emerged in the evening and night of 8 November 2016.

On 9 November 2016, the US Dollar collapsed in value. Futures indices had predicted a bloodbath for the American stock markets. After opening, shares and bonds crashed simultaneously. The bond market crash was the first indication of high interest rates – and hyperinflation.

Janet Yellen was quickly replaced by Ivanka Trump as chair of the Fed’s Board. Other Trump family members were put in similar positions. Donald Jr. was appointed head of the Internal Revenue Service (IRS) and Eric as head of the Securities and Exchange Commission (SEC). Donald Sr. took charge of the GOP and renamed it in MAGA – Make America Great Again.

The purchase of foreign assets (eg, art, FX, goods, houses, machinery, raw materials, securities) was immediately restricted to prevent a further depreciation of the US$. The massive drop of the Dollar and the simultaneous high price inflation, caused a widespread recession. Many Mexicans left the USA voluntarily as the American recession hit them first. Trump never had to build his great wall.

The state of California and New York tried to secede from the United States but each political activist was arrested or just disappeared. The infamous American political deadlock was quickly solved since many Democrats emigrated to Canada. Supreme Court member Ruth Bader Ginsburg was the first. Tiffany Trump replaced her while continuing her career as a singer.

Immediately after Trump’s election, he started buying back foreign owned US Treasury bills with a huge discount. He paid in US$ from the Federal Reserve with money that had just been printed by the US Treasury. Trump was more concerned with the humiliation of international lawsuits than with future hyperinflation.

International relations deteriorated quickly after Christine Lagarde, the French managing director of the IMF, had visited Donald Trump. She warned him about the imminent removal of the US$ from IMF’s Special Drawing Rights. Since 1 October 2016, the SDR basket consisted of the US dollar, euro, the Chinese renminbi, Japanese yen, and pound sterling.

After the visit, Trump had been furious and had used the following words to reporters: “disgusting” and “a slob” with “a fat, ugly face”. The media were not sure to whom his words really referred: Rosie O’Donnell or Christine Lagarde. The IMF subsequently relocated from Washington, D.C. to Paris, France. The United Nations was forced to downsize and relocate from New York to The Hague after the decline of the dollar and a dispute with Trump about paying outstanding bills.

Several South American presidents (eg, Bolivia, Suriname and Venezuela) were very impressed with the alleged Long Con of Donald Trump. They all acknowledged that Donald Trump had learned from the best. The Russian president just smiled at them, as he always did.

Freddie Mercury – The great Pretender (1987) – artist, lyrics, video, Wiki-1, Wiki-2

Oh yes I’m the great pretender (ooh ooh)

Pretending I’m doing well (ooh ooh)

My need is such I pretend too much

I’m lonely but no one can tell

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