Authored by James Rickards via DailyReckoning.com,
President Trump’s pick for Treasury Secretary, Scott Bessent, has stated that he believes the world is on the cusp of a “global economic reordering”. And he would “like to be a part of it”.
3-3-3 and China
Bessent has proposed the 3-3-3 economic plan for America, consisting of:
3% annual real growth
3% deficit-to-GDP max
3 million additional barrels of oil per day
These goals offer a nice start. If Trump can pull off all three, we’ll be well on our way to long-term sustainability.
Internationally, Bessent sees China as America’s prime competition. He believes the yuan is undervalued and that this is distorting the world economy by favoring Chinese exports. He says Chinese citizens save too much, and don’t consume enough, which is true.
"I think we can through deregulation, energy, independence and dominance in the US and a growth mindset. We can get back to growth. I feel very strongly that this is the last chance to grow our way out of this.”
This is correct. It is our last chance to change course on the economic Titanic. We’re headed for an iceberg and strong international trade policy and faster growth are the only ways to avoid it.
Poster Comment:
1 Reduce population to reduce rents and taxes
2 Abolish the FED.