Your poverty, that is. Not his...
It's OFFICIAL, writes Bill Bonner in his Diary of a Rogue Economist.
The White House says its tax cut didn't pan out the way it expected.
Instead of a projected deficit of $526 billion in 2019, the Office of Management and Budget now estimates Trump's proposed budget would lead to a deficit of more than twice that much – over $1 trillion.
From The Fiscal Times:
"The White House Office of Management and Budget on Friday released its updated annual budget request, known as the mid-session review. The numbers...contain what the Committee for a Responsible Federal Budget calls 'a very big trillion-Dollar admission'. Namely, the White House's own deficit projections keep rising, thanks to the recently passed tax cuts and spending increases."
But what else is the administration wrong about? Probably just about everything.
Growth will be lower than expected...no more than it was under Obama.
Deficits will be higher.
And the wars – against drugs, terror, poverty, and now trade – will all be lost, not won.
There was a time you could go to war...conquer some other nation...take their fertile women as concubines...their men and children as slaves...and their land and all their portable property.
Those were the good ol' days!
But they're gone.
Imagine Attila trying to take women by force today. Imagine Genghis running his Five Guys and cable companies with slaves. Imagine Tamerlane rampaging through Iowa...or Alexander the Great besieging Baton Rouge.
Alas, today, all wars are losers because today's world is fundamentally one of cooperative exchanges.
Real wealth is created by robust networks based on win-win deals. And real wealth is what gives you the technological ability to blow the other guy sky-high.
In other words, you can live with win-lose, but you will live in poverty and backwardness.
And if you get enough of those win-lose deals over a long enough time, you'll end up walking on all fours...with the win-win guys throwing you scraps of food.
In Trump's trade war, for example, winning would be the worst thing that could happen.
China is the fastest-growing large economy in the world...the biggest customer for raw materials...the biggest supplier of "everyday low price" goods for Americans...
And it has the biggest trade surplus, which it happily recycles into loans to America and other foreign countries.
In other words, when China goes down, most likely, the whole world economy will go down with it.
Then we can wave our flags...give a big whup of victory...and savor our poverty like a well-prepared roadkill dinner.
The media is meantime still buzzing about Trump's visit to Helsinki, where the President appeared to side with the Russians over the FBI on the question of election meddling.
What was said? What does it mean?
Our guess is that it is a distraction...a circus...full of sound and fury, but signifying nothing.
What really matters, and what the media isn't covering, is how many win-lose deals the feds are forcing on the rest of society. The more they do...the more they take...the more they boss everyone around, the poorer we get.
But it is not a graceful, gentile poverty that the feds impose. It is a brutal, nasty poverty.