Armstrong Economics Blog/Politics
Re-Posted Jun 26, 2018 by Martin Armstrong
QUESTION: Do you agree that a democracy will never last because the people will vote themselves other people’s money? Do you support Trump or are you against him? Sometimes to agree and others you disagree. Or are you just between the two extremes?
ANSWER: First, a democracy has been always temporary in nature, this is very true. Any form of government simply cannot exist as a permanent establishment for there will always be forces to usurp it as long as it claims a power to tax and legislate. A democracy will continue to exist not until the time that voters discover that they can vote themselves generous gifts from the public treasury. That is a questionable quote attributed to Alexander Fraser Tytler, Lord Woodhouselee (1747 – 1813). History does not support that. The Greek Democracy was overthrown not by the people but by the oligarchs. It is easy to say that the majority always votes for the candidates who promise the most benefits from the public treasury. But there is no absolute 100% empirical evidence of that. This view is purely post-Marxism and does not hold up historically. We are reaching a point that we cannot expect the truth from left or right. The worst form of government is always a Republican form which pretends to be democratic but is always in the hands of the oligarchy – just behind the curtain.
I believe the only type of government which may last cyclically longer is a Direct Democracy with a strict Constitutional Restraint, a Private Supreme Court which MUST hear every case and the Constitutionality of any legislation MUST be tested BEFORE enforced. If we can buy online from Amazon securely, then we can vote online securely as well and reduce the potential to rig elections as they have always done. The PEOPLE should have control of the legislature NEVER pretend “representatives” of the people who are career politicians. We can have “representatives” but that should be a term that is limited to ONE YEAR and never a career. They MUST be subject to the very laws they authorize. We should all be able to vote on every law at home and each law MUST be a stand-alone issue as they do in Switzerland. To change the Constitution, it should NOT be the majority of states, it should require 100% uniformity. Difficult – yes! That is the point. This just touches the surface. A lot more needs to be done.
You must separate Trump the person from the trend. These people who bash Trump focus on him personally. That is NOT THE TREND!!!!!!!! He is the symptom – NOT THE CAUSE!!!!!! He was elected for the simple reason he was against CAREER politicians. He beat 17 of them. If you remove California, he also won the majority of the popular vote throughout the rest of the nation and there were countless claims that California was rigged. That is why Bernie went to the White House to talk to Obama BEFORE he agreed to concede to Hillary. Bernie really won California. Even with all the rigging in California, the establishment still lost.
Trump is by no means the best person for the job. However, he is the ONLY person. He has bashed Canada on trade but keep in mind he is by far not being different there. All politicians say the same thing behind the curtain. I disagree with this nonsense because trade is HIGHLY distorted by currency. Canadians are NOT going to buy shoes in the USA, scuff them up, and sneak them back into Canada. First of all, most shoes are made in Asia anyhow. Secondly, the US dollar is TOO HIGH to make it worthwhile for Canadians to travel to the USA to buy things for they will NOT be cheaper. When it comes to trade, Trump is displaying the same nonsense that has been the prevailing view since World War II. I have stated plenty of times, NOBODY knows what is the balance of trade because it is measured under the old fixed exchange rate system.
I have CONSISTENTLY argued against this stupidity even when the politicians start bashing other countries accusing them of manipulating their currencies for trade. So do I fault Trump? No. This has been the prevailing view of ALL politicians for they are prejudiced by the failed economic theories that we were taught in school and are STILL being taught to this very day even in the top 10 universities around the world!!!! Hello! Welcome to the floating exchange rate system since economics continues to ignore the simply fact the monetary system changed back in 1971.
This is the response of Tim Geithner for Rubin. You will recall that Geithner later became Secretary of the Treasury.
There have been a few politicians over the years that understood what I was arguing about is this currency manipulation all for trade. However, they are far and few between.
So do I support Trump? On some things yes, on others no. I am by the issue, not the political party. Republican and Democrats are the same when it comes to money. They just push everyone’s buttons on social issues. John McCain voted to enforce state sales taxes federally. He justified that by claiming he was not “raising” taxes but voted to enforce what taxes already existed. That is what I mean in politics – it’s; just show me the money. So no, I will defend Trump on economic issues that are valid and disagree when he has it wrong. I just ignore the person and deal with the issues not the gutter bashing that ignores the subject matter which is the entire purpose of bashing Trump so we do not look at the issues.