Trump is right... and so was Liz Truss

TRUMP is right – and so was Liz Truss!

There will, I am sure, be those who choke on their porridge when they read that line. But please bear with me.

Liz Truss has penned a most interesting article in the Telegraph this week (April 14) which makes a lot of good points. I am proud to admit that when the so-called mini budget was promulgated I thought it was great and at last we were getting back to policies which just might improve things and create growth.

Of course I am Economics Man who espouses lower taxes and less state interference. Sadly, various forces conspired to sweep it all away (and in case you didn’t know Andrew Bailey has admitted that most of the market shenanigans were created by the Old Lady herself). The article is a must read. And, by the way, Our Rachel’s insistence her policies are pro-growth is complete hogwash.

So what does Liz say about Trump? He is right about net zero – in the UK just think Scunthorpe and massive increases ruining all sorts of businesses.

He was right about Covid lockdowns – think of our burgeoning sick culture here in the UK.

He is right about mass migration – think of the UK’s inability to halt even illegal arrivals and the ongoing ruinous costs associated with it, never mind our inability to assimilate them.

And (amongst other things) he is right about China and its predatory economic policies. It has proved to be a malevolent force using its economic muscle to extend its political clout.

And before you say 'Oh but China is part of the World Trade Organisation', yes it is – but doesn’t abide by the rules and when told it isn’t says “sorry” and continues anyway.

Trump’s tariff regime is destined to wrest back what can be got. He can see the “hollowing out” of whole towns and cities leading to decline and penury. Without policies that return jobs and determination we might as well give up any pretence of sovereignty. And he is right about lowering interest rates AND taxes. I am no lover of Trump but as I said recently, you have to give him credit where credit is due.

Back to net zero. As Liz Truss says, the Paris Accord basically handed Western Economic power to the Chinese. It has resulted in our unilateral economic disarmament – a lovely phrase she uses.

Unless proper growth policies are put in place very soon, there simply won’t be cash to pay for all the welfare and care that we have come to expect. Well, there will, but it will come out of the pockets of those “hard working people” we hear so much about. More and more is getting funnelled away from productive endeavours towards the swamps of a non-productive morass.

And what of the crypto market in all this? Some are still awaiting the US authorities wading into markets which I’m certain isn’t going to happen. It is worth noting that, despite shouts to the contrary, the XRP/SEC battle isn't yet finished. Personally, I regard that as a bit of a red flag, but we will see. 

But what is clear is that the old tradfi system is really struggling to cope with today’s demands.

Quite by chance I found myself aware of a $100 million transfer from the USA to UK. Never mind the actual cost (ginormous) but the length of time ran to weeks. Now I know there’s compliance and KYC and AML but all that can be done in next to no time nowadays, even before AI got given it to do.

And what of the poor people waiting on the cash? They couldn’t get any of it before it arrived and had to simply stop paying some of their people. Luckily, everyone decided to work together to reach a successful outcome.

Had it been done in crypto, it would have been there the same day it was sent. And the cost would have been peanuts.

I know I’ve said this before, but really, it bears repeating. More tax = less growth. Less growth = less available tax. Less available tax = increased taxes. And we are back at more tax…