Donald Trump’s Scab Man

PetrinaJust like every boxer needs a cut man, every billionaire needs a scab man to acquire his cheap foreign labor. In Trump’s case, it’s a scumbag by the name of Peter Petrina. According to the New Your Times: “To find foreign workers for his resorts, golf clubs and vineyard, Mr. Trump uses a recruiter based in upstate New York, Peter Petrina. Mr. Petrina, who declined to comment, is of Romanian descent and has an office in Romania, which has served as a labor pool for many European countries.

So, if you have an office full of uppity American workers who feel entitled to a middle-class lifestyle, and you want to kick them to the curb to increase your profits and buy that third jet, Mr Petrina is your man. He will fly in planeloads of his hapless countrymen who will work for peanuts on restrictive visas, and not even dare to dream the American Dream.

Trump Abdicates

During the Fox News unfair and unbalanced persecution of Republican front-runner Donald Trump last night, the most-damaging blow was self-inflicted by Trump himself. Trump has adopted the Silicon Valley meme that “Americans are too stupid to work” and must be replaced foreign scabs.

So, after a brief stint as Champion of the People, Trump has gone back to being a garden variety robber baron. In my 2013 book, Dark Arts of the American Oligarchy, I didn’t mention Trump, but I did mention the Palm Beach hotel industry:

“Nobody should be surprised if one day huge ships carrying impoverished people from Cambodia, Egypt, or Kenya begin to arrive at the Port of Miami. And nobody should be surprised if tax dollars are used to teach them English and train them to take service-industry jobs. In fact, some of this has already occurred in Palm Beach County where high-end resorts have brought in workers on H-2B visas instead of hiring locally.”

Trump was one of the oligarchs bringing in the scabs, albeit on airplanes instead of ships, most likely. And Trump is defiant about pissing on American citizens; he won’t stop. Like he told Marco Rubio during one of the debates, this is “how business works.” And he wasn’t lying. This is indeed how business works in a globalist economy where the USA is merely a conquered province, citizenship is worth very little, and sovereign borders are a minor inconvenience to oligarchs.

Marco Rubio’s state is a vast sea of poverty, and has an enormous number of people on food stamps: 3.7 million. And Trump says that none of them want seasonal jobs? BS.

Perhaps Trump will still be the Republican nominee, and even president, but don’t expect much to change. His trade rhetoric is likely just a mechanism to insult Obama’s intelligence, and he will likely continue to manufacture his products in China and Mexico like everybody else down at the country club.

It’s clear that there is huge demand for a populist/nationalist revolution, but the politicians trying to hustle to the front of that movement are conspicuous in their absence.

Update: The Trump campaign issued a retraction. However, this isn’t the first time that Trump has spoken in favor of flooding the country with cheap labor. If he has to have a handler stand next to him at the podium, and elbow him in the ribs every time he says the exact opposite of what Jeff Sessions wrote for him, then how much could Trump actually believe it? Trump is trying to act the part of a populist, but is doing a very bad job of it. His oligarch colors keeps shining through.

Income-Inequality = Low Interest Rates

Imagine that you are an esteemed captain of industry and you decide to go to Small Town, Kansas to bequeath the little people with your beneficence, sort of like young Lex Luthor in Smallville. Shortly after arriving, you discern that the town’s entire economy revolves around a refrigerator factory, and you laugh out loud: “Don’t these yokels know that manufacturing is for idiots? Don’t they know that they have to move up the value chain to raise their standard of living by inventing the next Facebook, or curing cancer?”

The idea that mere factory workers are getting paid $25 per hour in this day and age is ludicrous. So, you set out to put things straight, to bring Small Town into the modern age by purchasing the factory. You immediately set the workers to dismantling the machine tools, packing them into crates, and loading them into boxcars. When the job is done, an engine comes to fetch the boxcars and hauls them down to Mexico where the factory is reassembled, and staffed with $2 per-hour workers.

With your modern sweatshop factory churning out huge profits, you decide to put the money to work by making loans to Small Town residents at 5%. But to your dismay, none of the applicants qualify because they are all unemployed. So, you decide to lower your prices and cut the rate to 4%. Still no takers. And so on. Turns out, it’s not only the factory workers that are bad-credit risks. All the mom & pops who ran the shops and restaurants frequented by the factory workers have also gone belly-up. Even at 1%, there are still only a few qualifying borrowers. You make a loan for a pickup truck to a guy who scavenges copper from abandoned buildings and sells it to the Chinese. And another loan for a bulldozer to a guy who demolishes dilapidated houses. But that’s about it.

What has happened is very simple: before you came to town, everybody was working and prosperous, and the local bankers did good business making mortgages, car loans, etc. But after your glorious arrival, nobody was working.

Then a light bulb goes off over your head: “Forget these lazy loser Americans. I’ll go south of the border and make loans to the hardworking Mexican people.” But then you are crestfallen when you remember that you are only paying them $2 an hour and they can’t afford to buy anything either.

So, congratulations, you outsmarted everybody and got all the money, putting an end to civilization in the process.

The above scenario is not a thought experiment; it’s something that has been going on for decades. Those 45 million people on food stamps didn’t just fall from the skies. We as a society decided that instead of having everybody working, we would instead allow a handful of people to amass a vast trove of capital in the Cayman Islands. It is literally an economic policy for creating mass poverty.

However, if you ever see a concerted effort being made to rollback globalization and bring the factories home, that would likely be an excellent time to bet the farm on bank stocks. Don’t hold your breath though; low interest rates will likely be with us for a very long time to come.

America’s Dead Zones

A while ago, I heard somebody say that the there are so many homeless people in the Skid Row neighborhood of Los Angeles that it looks like a scene from The Walking Dead. Now they say that large swathes of adjacent neighborhoods have been absorbed into the dead zone. The situation is so dire that the city of Los Angeles has declared a state of emergency. Click here to see some pictures.

You know those economists who said that offshoring thousands of factories while simultaneously importing millions of workers was a perfectly wonderful economic policy? This is their handiwork. Oligarchy bootlickers; every last one of them.

How many more dead-zones like this are there across the nation? I don’t know, but I’ll bet there are quite a few. This would be a good topic for an investigative journalist. I would recommend looking into Fresno next, having recently watched the documentary: “The City Addicted to Crystal Meth.” The Brits seem to really enjoy documenting that depths to which the USA has sunk. And yes, the USA has become a laughing stock.

Monetary Policy has no Effect on Wages in a Slave Society

Imagine that you are Fed chairman in 1830, and at an FOMC meeting you ask the committee: “how can we adjust our policy levers here at the central bank to get a wage boost for the slaves down south?” What would happen? Your fellow fed-heads would probably look at you like you were insane. Then they would offer suggestions, trying not to giggle in the process.

In the future, a big milestone in the march toward a fascist slave-state will go into the history books when Congress formally relieves the Fed of its mandate to strive for full employment. Perhaps this will be done in the aftermath of a global financial catastrophe caused by the Fed pumping absurd amounts of liquidity into the global financial system.

This is inevitable because with the ever-expanding policies of free-trade and mass-immigration, what is left of the USA’s economic boarders are rapidly melting away. And that’s why the wage data is still punk after trillions of stimulus from the Fed: wages in the formerly-sovereign USA cannot rise until after wages rise in the “Mexico” and “China” and “India” regions of the neoliberal global empire.

It’s pretty obvious that the Fed, and the ECB, have succeeded only in creating massive distortions in global financial markets (such as negative rates on German bunds). Perhaps this is why Janet Yellen is so hesitant to make even a teensy quarter-point rate hike: she knows that she will have to engineer the mother of all soft-landings. The path of least resistance for her would be to keep rates at zero until a rise in inflation forces her hand. Once the CYA is in place, she can blow up the world.

If David Rockefeller and his neoliberal oligarchy were competent, they would have removed the Fed’s full-employment mandate long before they reached their goal of commoditizing global labor at a wage-rate of $2 per hour. But they are anything but competent, and the 2008 financial crisis was only a small taste of the havoc they will wreak upon this nation.

Godspeed Janet Yellen, Godspeed.