Survival or Looting? What Trump’s Revolution is Really About
Many people, including me, are still not sure what Trump’s revolution – in trade, international relations and in his fight against the U.S government at large – is all about.
Trump, it seems, sees that the current path the U.S. is on, with ever increasing deficits and debt, is unsustainable. He and his people argue that the dollar as a reserve currency is doing more harm than good for the country. They point to the decrease in manufacturing as the main symptom of a larger disease.
They believe it is necessary to destroy the old system before a new, more glorious one, can arrive. They know that the process will be painful for many but hope for a better outcome on a new trajectory. (There is also a motive of personal profit.)
Alastair Crooke is alluding to all that when he writes (also here):
The Trump ‘shock’ – his ‘de-centring’ of America from serving as pivot to the post-war ‘order’ via the dollar – has triggered a deep cleavage between those who gained huge benefit from the status quo, on the one hand; and on the other, the MAGA faction who have come to regard the status quo as inimical – even an existential threat – to U.S. interests.
…
Vice-President Vance now likens the Reserve Currency to a “parasite” that has eaten away the substance of its ‘host’ – the U.S. economy – by forcing an overvalued dollar.
Just to be clear, President Trump believed there was no choice: Either he could upend the existing paradigm, at the cost of considerable pain for many of those dependent on the financialised system, or he could allow events to wend their way towards an inevitable U.S. economic collapse. Even those who understood the dilemma the U.S. faces, nonetheless have been somewhat shocked by the self-serving brazenness of him simply ‘tariffing the world’.
Trump’s actions, (as many claim), were neither ‘spur of the moment’, nor whimsical. The ‘tariff solution’ had been pre-prepared by his team over recent years, and formed an integral part to a more complex framework – one that complemented the debt-reduction and revenue effects of tariffs, by a programme to coerce the repatriation of vanished manufacturing industry back to America.
Trump’s is a gamble that may, or may not, succeed: …
A similar argument can be found here:
Even though Trump explained the logic of the tariffs as an attempt to correct the trade imbalance between the US and the rest of the world, White House officials [(archived)] outlined the expected goals behind the tariffs in more detail. They described these goals as concentrating economic forces nationally to “push for structural changes to the global economy to rectify challenges that are difficult to overcome, including high tariffs globally, currency and tax policies, intellectual property theft, and even health and labour standards”. Ultimately, Trump aims to reshape the global economic order by prioritising America’s national interest through this wide range of tariffs.
…
Trump fully understands the consequences of his policies. America’s “aggressive unilateralism”, which started in the 1980s with Ronald Reagan, has now peaked. Trump isn’t an outlier; he embodies the genuine interests of a waning superpower, whose policies mirror the conflicting and shifting global reality he navigates. Trump’s 2nd administration is poised to instigate a major crisis and widespread devastation worldwide to prevent its inevitable downfall. Their rise to power and the ensuing actions merely reflect the profound structural and historical changes occurring in the international political economy and the global power architecture.
There are also such headlines
Trump’s in-the-know plan to demolish the US economy – Asia Times
Trump insider claims demolition plan will necessarily ‘decimate millions of investors’ while reset will bring ‘greatest wealth creation’ ever seen
I do not know if those are Trump’s real intentions or if all such talk is just obfuscation to hide the immense insider dealing and looting that is coming along with it. The later might very well be its sole purpose.
As Yves Smith at Naked Capitalism sees it:
[W]e are in the midst of a revolution, one run by reactionaries trying to cement the advantaged position of the rich and further immiserate the rest of the population. I warned from the outset that the only way to make sense of the Trump policy blitz was that he and his allies intended to created a Russia-in-the-1990s level crisis so as to facilitate elite asset grabs.
She is on board with Michael Hudson in this. Hudson …
.. explains why the seemingly novel part, the heavy use of tariffs, represents continuity of neoliberal and libertarian policies, of reducing the role of government in commercial and private life. He contends they therefor have perilous little to do with “rebuilding” America and are intended to allow the super-rich to extract even more from ordinary citizens.
Trump is not alone in doing this. There is a swarm of multi-billionaires around him who are pushing for it:
A sector of the U.S. capitalist class is now openly in control of the ideological-state apparatus in a neofascist administration in which the former neoliberal establishment is a junior partner. The object of this shift is a regressive restructuring of the United States in a permanent war posture, resulting from the decline of U.S. hegemony and the instability of U.S. capitalism, plus the need of a more concentrated capitalist class to secure more centralized control of the state.
Trump is slashing the budgets of many vital institutions and, via Elon Musk’s DOGE, eliminating their means to function and to measure outcome. He is enriching himself by building a cryptocurrency empire while destroying its regulators.
While this is mostly a fight at home there is an strong international component to it. As Brian Berletic provides:
The US is preparing to subject its own population as well as those of its supposed “allies” to immense long-term economic, social, and political pain. The cost-of-living crisis in the US will only grow worse. The US hopes that it can endure economic pain and disruption at home and abroad better than the emerging multipolar world can. Multipolarism’s survival will depend on proving otherwise.
And therein lies the trouble for Trump. The looney tunes trade policy will be felt in China and elsewhere. But the pain level in the U.S. will be much higher. Other government will provide for their populations while the Trump administration has no intent do similar at home.
His tariffs against China will have similar consequences as the European sanctions on Russia. The targeted country will have no problem to handle the onslaught while the initiators will deeply hurt their own polities.