IF TRUMP WINS: A Deep Dive into the Decadal Financial and Geopolitical Consequences of a Trump Regime By Mark Anderson Why Read: It is hard to avoid articles on what Donald Trump would bring with his potential election in November; but it's even harder to find useful predictions about the deeper, wider, and longer effects of such an event. To find some of them, read on. - mra ________
We should begin by saying that we're not trying to predict the outcome of the US presidential election. In fact, for reasons that remain a bit mysterious to me, I have the dubious record of being 100% wrong, as far back as I can recall, in my presidential election predictions. And this despite, in virtually all other predictive categories, my accuracy "number" has averaged 95.3%, since 2005. Clearly, there is a Grand Canyon-sized gulf in my understanding of the patterns involved in a federal election. But for the purposes of this week's issue, it doesn't matter. Rather, when I/we use the patterns of an individual leader's personality or actions in order to predict outcomes, we revert to the high-90s mean. And that is the focus of this week's discussion. I will also add that the recent resignation by President Biden from the 2024 campaign, apparently in favor of VP Harris, will have no effect on Trump plans if he is elected. Onward -
Trump's indefatigable narcissism provides an extremely useful lens for identifying and classifying all the other patterns of his behavior and its effects. After all, for him, it is all about him. So let's start there:
His general patterns seem to be that he reacts to events, deal by deal, in a world populated by those who flatter him versus those who do not.
1. Tariffs and Trade While Obama did almost nothing to counter China's attacks on the US and its democratic allies, Trump at least brought a potpourri of tariffs into play as president. This time around, he has recognized that we are in what Evan Anderson has properly titled in these pages an "all-front war" with China. To that end, he is proposing a 60% tariff on all Chinese goods, with the potential of a 100% tariff on all imports of Chinese electric vehicles. He is also proposing, as part of his drive to re-establish manufacturing (and blue-collar jobs, and a middle class), a 10% tariff on imports from most other countries. In short, there is every indication that Trump would take seriously China's public plans to dominate the US and the world and fight back strenuously. Global trade takes a back seat to this program. To his credit, Trump seems to understand the SNS credo, long forgotten in favor of greed on the US side: "Don't exchange cheap goods for good jobs." This means prices would go up, as they should when not subsidized by one's economic enemy. This is by its nature inflationary, even though it is the natural result of rebalancing away from a prior state of economic serfdom. The result of this should be a large-scale reshoring of jobs, a re-growing of the US middle class with wages that match today's economy, and a return to the innovation / manufacturing feedback loops that we have lost track of while building things like Facebook and Google. Trump's pattern of recognizing China and its all-front war as the US's top security threat is supported by the US military's strategic view and by both houses and both parties of Congress. Unlike Biden (and unknown for Harris), he is willing to do whatever it takes to counter China's economic damage to the US. 2. Dictatorship on Day One Like China, Trump tends to do what he says he will. But in this case, there is an inherent question set. Would he act like a dictator on Day One of a new presidency? Absolutely. We recommend reading the 920-page "2025 Presidential Transition Project" by the Heritage Foundation, which we are taking as an absolute blueprint for Trump by his past and future staff: Project 2025 | The Heritage Foundation We are aware that Trump is saying this is not the case, but - He's almost certainly lying, given the number of his past staff listed as authors. What most people are probably not thinking of, but which would fit the recent patterns of the "new candidate" Trump (no discussion, no disagreement, as with the GOP platform meeting this year), is that he and his team may come in with 10, 50, 100, 500 new edicts on this first day in office. The country can spend the next four years trying to figure out what just happened. The second question here is, since absolute power corrupts absolutely, why would he stop at Day One? He wouldn't; but saying he would softens the blow. 3. Removal of China from Most-Favored-Nation Status at the WTO Great idea. While there is no process for this today, pulling out (see below) is a next-best alternative. But dumping China and undoing Clinton's work bringing them in would be better for everyone, as China has never followed WTO rules, despite its promises to do so. Dumping China would give the WTO credibility; leaving it would abandon the field to the enemy. Starting a new WTO2 without China might be an even better choice, but it wouldn't fit Trump's aversion to any international group. 4. Increased Spending on the Military, Decreased Taxes Those members old enough to remember Ronald Reagan, with his soon-to-be disproven "trickle-down theory" of economics, will be right at home with Trump's campaign promise that he would spend more on the military, cut taxes, and balance the budget. Well, two out of three wasn't bad for Reagan, but number three turned out to be a simple pass/fail math test that the voters failed. Spend more, take in less, bust the budget. This means that a Trump regime would bring vastly expanded debt, with all or most of its attendant problems - including national economic risk, inflation, degradation of currency value, and less money for social issues, including Social Security and Medicare. The US becomes more militarily, and less economically, secure. 5. Strong Support for Israel and Saudi Arabia Following on from his last presidency and his family's business deals thereafter, we could count on Trump giving a complete pass to both these countries, for whatever they wish to do. We would also expect to see the Israel / Saudi pact reinvigorated. This also suggests that Israel would take over both Gaza and the West Bank, with no repercussions, and Netanyahu gets to stay in office. If you are a Palestinian living in Gaza or the West Bank, if Trump wins, it might be the right time to look for a home elsewhere. 6. Internal Conflicts Over the CRINK Alliance If Trump continues to act like a rubber stamp for all things Putin, and to recognize and fight against China's war with the West, there is an obvious and unresolved tension coming up: what happens if and when Putin asks him to be nice to China, as part of the enemy CRINK (China, Russia, Iran, and N. Korea) alliance? The likelihood, given Trump's recent comments about having Taiwan pay us for its security, is that he just turns a blind eye - not only to all things Russian, but to all things CRINK. Did I mention The Manchurian Candidate? Is there a Third Way path available here, in which we make nice with CRINK while they attack from all sides, and we still prosper? Nah. But since Trump will apparently never cross Putin, if he's elected either Putin will use the US as its hedge against Chinese domination of Russia or we can look for Trump to make increasingly nice, flattering noises about China and Xi. The Iran vs. the US / West / Israel question would create the same conflict on Trump's agenda, as Russia would have to decide what role the US should play in the obvious tug-of-war. Regardless of who is elected this year, it appears they will have to contend with a rapid nuclear-weapons buildup by all CRINK members, with increases in support and other weapons systems and their cross-border integration. The idea of four countries aiming nukes at the West as an incentive to just back off during territorial gains, economic or misinformation or bio attacks, etc., is just around the bend. And, while we will need strong alliance partners more than ever, economically and militarily, Trump's personality would likely weaken all alliances, as he intentionally did last time in office. 7. Withdrawal from International Institutions Trump has suggested that the US either decrease support for, or leave, many international institutions - including, but not limited to: NATO WHO WTO UN . . . and many international multiparty treaties While the first four are historically obvious, members will recall the US pulling out of the Pacific trade agreement, harming our credibility with APEC-related trading partners (since we had created this treaty). Aside from the merits, it is possible that the author of The Art of the Deal is only comfortable with binary negotiations, where he can make deals happen on his terms. Interesting, eh? But not good at a time when the world is threatened with CRINK moving worldwide in its influence, economic, construction, information, and military campaigns. 8. Withdrawal from International Conflicts Trump has suggested that the US either decrease support for or abandon its role in the following global conflicts: Ukraine Yemen Africa Taiwan South China Sea Israel/Gaza/Lebanon Trump's Taiwan comments this week regarding paying for security sent US equity markets into a tailspin and smacked of early indicators of going soft on Xi Jinping. (He also told an interviewer that he and Xi actually get along, etc.) Assuming an isolationist stance makes business sense if one compares the US strategy of being the world policeman for free with the Chinese stance of charging staggeringly high debt payments for each favor, or the Russian stance of exacting Mafia-like payments for every African mine the Wagner Group takes over and then protects. What CRINK does for money, the US does for democracy - and perhaps less obvious financial and political benefits. 9. On Domestic Economic Issues In addition to those domestic economic issues already mentioned, we can expect the following under a Trump return presidency: a. Equity Markets: Big Tech vs. Little Tech It appears that Trump (and Vance) would penalize "global" corporations for their willingness to help (and lobby for) our enemies, while actively working to assist midsize and startup US firms. Marc Andreessen, in moving with Ben Horowitz and the "PayPal mafia" to support Trump, created the above schism in tech company sizes, claiming that Biden was good for Big Tech but not for A16z's "Little Tech" entrepreneur-driven innovation ecosystem. Already fading in power, the SEC (Elon's primary target) would likely fade even faster under Trump. b. Antitrust The legacy of Lina Khan would come to an end and be erased, as antitrust actions would be reduced as part of the larger cutting of regulatory programs and reach, already heralded by the Supreme Court "Chevron" case reversal. c. Income Inequality Under Trump II, it is likely that the rich would get richer, and the poor would get poorer. However, with success in bringing good jobs back from China and protecting them with Special 301 tariffs, etc., this could be ameliorated. Trump could actually recreate the US middle class - not by taxing the rich, but by bringing high-paying middle-class manufacturing jobs back from China. This may be Trump's strongest offering to the overall base, and why he is attracting so many working-class voters. 10. Immigration I would expect illegal immigration to be yet more reduced, by a considerable amount, compared with even today's reduced figures under Biden's just-reversed asylum policies. The fact of this action would, of course, then lead to fewer attempts, circularly leading to fewer immigrants, and so on. Many of Trump's ideas and policies, in the hands of a different Republican candidate, would be more attractive and offering of promise, even if controversial; but voters don't get the platform without getting the person. Because Trump lives in a privately defined world - with him at its center and based on deals rather than ideals - the mid- and long-term economic effects would be radically different. On the surface, it is possible that there would be the changes that his base is looking for: reduced Chinese economic power resulting from a more complete disengagement by its top export customer; deep reductions in illegal immigration; a renewed middle class capable of earning a living wage through restored manufacturing jobs. On the other hand, there seems little question that the economic and political costs are off the charts: dictatorship, for more than one day; local militias empowered by his approval and encouragement; retribution against a list of personal enemies that is constantly shifting, with the Justice Department and the FBI the personal vindictive instruments of his office; and a near-casual disdain for the Constitution, the rule of law, and anything else that wasn't convenient, day by day, in a newly envisioned Imperial Presidency. Would Trump and his now-cultlike party relinquish his dream of Imperial Presidency powers if they won in 2024 but lost the next election? No. And that, sadly, is also a pattern. All patterns suggest he would stay in power without the hindrance of further fair elections. What's more concerning: He won't accept losing this one, either.
Your comments are always welcome.
Sincerely, Mark Anderson
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"The impact of today's outages was defined by the reach of CrowdStrike; not the reach of Microsoft." - Microsoft spokesperson Kate Frischmann
"The founder of the organisation Captain Paul Watson Foundation, the Canadian-American citizen [SNS member] Paul Watson, was arrested yesterday, Sunday 21 July, by the Greenland Police because there is an international arrest warrant for him. [. . .] "Yesterday afternoon, Paul Watson appeared in a constitutional hearing before the Sermersooq Circuit Court, where the judge decided that Paul Watson must be detained during the investigation of the case, provisionally until August 15, 2024. "Paul Watson appealed the circuit court's decision, and therefore the Greenland High Court must rule on the case." - Greenland Police statement; abc.net.au
"We're completely shocked, as the Red Notice had disappeared a few months ago. "We were surprised because it could mean that it had been erased or made confidential. We understand now that Japan made it confidential to lure Paul into a false sense of security. "We implore the Danish government to release Captain Watson and not entertain this politically-motivated request." - CPWF Ship Operation Director Locky MacLean; ibid.
"A full-blown rollout from a security vendor to every customer within minutes is very dangerous." - Dave DeWalt, who has been in regular contact with Kurtz, his former employee at McAfee, since Friday's botched update; quoted in The Wall Street Journal
"The first pillar, the upcoming production of the policy book Mandate for Leadership, represents the work of more than 350 leading conservatives and outlines a vision of conservative success at each federal agency during the next administration. Presidential candidates won't be able to ignore what the conservative movement demands in this book. "The second is our online personnel database. This "Conservative LinkedIn" will launch in March and will provide an opportunity for rock-solid conservatives to place themselves in contention for roles in the next administration. This pillar will bring Mr. (and Mrs.) Smith to Washington. "The third is our Presidential Administration Academy. When conservatives do finally make it into an administration, they often don't know what to do or how to seize the gears of power effectively. Through their action, inaction, and their encyclopedic knowledge of volumes of technicalities about the federal workforce, certain career federal employees are masterful in tripping us up. Our interactive, on-demand training sessions will change that. They will turn future conservative political appointees into experts in governmental effectiveness. "The fourth and final pillar of Project 2025 is our Playbook, which will take the policy ideas expressed in Mandate for Leadership and transform them into an implementation plan for each agency to advocate to the incoming administration. What regulations and executive orders must be signed on Day One? Where are the greatest needs for more political appointees? How can we effectively use the mechanisms of government to face our most challenging problems? Our Playbook will put our movement to work answering questions like these." - Project 2025 Presidential Transition Project, on the Heritage.org website
"The case hinges on a statement made in 2022 by the panel reaffirming its decision to award the national reporting prize in 2018 to The New York Times and The Washington Post for their coverage of Russian interference in the 2016 U.S. presidential election and Russian ties to the Trump campaign. After the prize was awarded, a special counsel, Robert S. Mueller III, investigating the Russian interference allegations, said he could find no evidence that Mr. Trump or his aides had coordinated with the interference effort. "Mr. Trump and others who disputed the reporting had urged the Pulitzer Prize Board to revoke the award, but in its 2022 statement, it said two independent reviews had found nothing to discredit the articles. The reviews found that "no passages or headlines, contentions or assertions in any of the winning submissions were discredited by facts that emerged subsequent to the conferral of the prizes," the board said in the statement. "Mr. Trump sued the board in state court in Florida over the statement, arguing that it was defamatory. Lawyers for the Pulitzer Prize Board argued that the panel's statement was an opinion, not a statement of fact, and thus could not be defamatory. "In his ruling, posted online by Politico, Judge Pegg turned down the board's arguments. Citing legal precedent that a statement may be defamatory if a speaker provides inadequate factual context, Judge Pegg said the board's 2022 statement provided too little information for people who read it to evaluate whether the prize should stand and whether the underlying reporting held up in retrospect." - New York Times, "Judge Rejects Bid to Dismiss Trump Libel Suit Against Pulitzer Board"
President Biden's Letter of Resignation from the Campaign
Subject: "SNS: THE RACE FOR AUTONOMOUS AI: THE KEY TO GLOBAL TECHNICAL AND ECONOMIC DOMINANCE" Dear Mark, I, for one, would be highly interested in learning more about your proposed workshop on Pattern Discovery! I was just asked by a group of professors at the University of Maryland, Eastern Shore, to develop a program that would teach entrepreneurial leadership, and one of the issues that came up is how do you teach students to find opportunities. I have several of my own half-baked ideas on how to prime the brain pump to see opportunities, but I have read your book on pattern discovery and see that as a great tool for students or anyone who wants to be an entrepreneur. Please keep me informed on your progress. Thank you!
Randall Reade Executive Vice President
Randall, We'll add you to the list of people interested in a new program about learning how to use pattern recognition to make Pattern Discoveries - and yes, since this flips the scientific method on its head, it could be used for recognizing opportunities by entrepreneurs, just as it can by scientists or established business or political leaders. In fact, there is a paper we at Pattern co-wrote with 35 authors from the National Labs, Cambridge, and Yale, called "Learning from Learning Machines," which explores pattern recognition applied to Explainable AI, and which you might also want to read. You can find it here: XAI-ArXiv.pdf (patterncomputer.com) Finally, thanks for reading the book; those who are interested in this subject might find it useful as a guide to seeing the world through a "pattern lens"; it is available here:
Mark Anderson
Mark, I assume you are well aware of this counter argument. I find Gilder always makes me think, even when I am pretty sure he has some things wrong. I would love to read your counter-counter comments at some point. The China Hawks Are Lying Us into War by George Gilder and Richard Vigilante 06/19/2024
Rollie Cole Senior Fellow, Sagamore Institute for Policy Research
Rollie, George is an old friend, and I have always admired his grasp of tech and its effects. However, with no disrespect intended, this piece latches on to an IP theft figure and uses it as a straw man to make political points. To that end, it is useless - first, because, contrary to the piece, there has been very detailed work done on the value of IP theft costs to the US, and they are indeed in the $300B-$600B range, as best as we can determine; and these figures are now outdated and probably too small. Obviously, George is unaware of Evan Anderson's briefing book on China and this topic, called "Theft Nation," available at www.stratnews.com. I used this book to brief the top officers of the NSA, CIA, FBI, NSC, the State and Commerce departments, and USTR in the US; the PM of Australia; in the UK, MI6, MI5, GCHQ, and the Cabinet Minister's Office; and, in the EU, Interpol and the French and German intelligence services. But no, clearly, I did not brief George - or his co-author. The overall tenor of this piece - that China is OK, and only political hacks see otherwise - is dangerously out of date and completely wrong and naive. It's the kind of thing one might have read in the '90s, or from a captive industry lobbyist today. For a decade now, both parties in the US have understood and agreed on China's malign role and activities - with Japan, Australia, the UK, and the EU also in strong agreement. Perhaps the authors should stick with what they know best.
Mark Anderson
Subject: Comments wrt "SNS: THE NEW ECONOMIC LANDSCAPE" Mark, Article has much wrt what is happening, but less wrt why and the combinatorial effects....... Thoughts on WHYs... Basically primarily due to and recovering from COVID and the work from home overhang. 1. The layoffs - During Covid business etc learned to be more efficient, learned they could do more with less, ETC. 2. Outputs - There was pent up demand formed during COVID initially, that is easing up now 3. Housing - to work at home seriously need a home designed or changed for work at home purposes, so increased demand, so cost increases, and money moves / follows such profits, not surprising 4. Many working at home moved out of cities, so demand nature and location shifted 5. Yes, and the effects of AI/Chatgpt etc, and THAT will IMHO become far greater. Track the some 36% of the econometrics which is the GIG economy, where many made redundant by the machines go....Many stories around wrt major Ai engendered layoffs 6. Better products at cheaper prices available elsewhere.... Locally, in Southern Va, plenty of jobs, nationally, much celebration wrt job creation.....???? Companies are shifting from degrees to certification. Recent studies indicate Many degree programs do not pay off economically. Education is moving to the web, huge number of free courses, many from top universities. Autonomous AI becoming cheap "instructors" [guides on the side], building MOTIVATION into the online courses. Many , many things [aka nearly everything] in motion, changing much for a huge number of reasons, too many frontier techs and major to existential issues impacting society now, not much is "simple" any more........Except the huge impacts of PROFITS.
Best, Dennis Bushnell HFAIAA, FASME, FRAeS
Later in this thread:
Subject: Autonomy.... Mark, WHY we still have pilots, decades after Essentially wheels up/down autonomous aircraft [ the first being the tomahawk cruise missile as I remember], is unknown unknowns.... Need to have for autonomous passenger aircraft, a system that can solve and execute in real time conditions that have not occurred before, not in the training data etc. [weather, traffic, equipage defaults, and their combinatorials....] at the system of systems level. I wrote on this awhile back, overtaken by events now [attached]. AI can now create / ideate, innovate better than humans, and as add more training data, just gets better. The issue is to CLEAN UP THE WEB DATA, so AI is more reliable.... THEN can do serious AI for autonomy, with results suitably fenced/ filtered to avoid adverse human effects........
Dennis And later:
Subject: Re: Trusted Autonomy YUP! As I sent, TRUSTED Autonomy is needed, THAT REQUIRES handling unknown unknowns, GANS level ideation and implantation in real time. From techxplore: ______ JULY 9, 2024 Trust, more than knowledge, critical for acceptance of fully autonomous vehicles: StudyWhile not yet on the market, fully autonomous vehicles are promoted as a way to make road travel dramatically safer, but a recent study found that knowing more about them did not improve people's perception of their risk. They needed to have more trust in them too. This study adds to the evidence from other research that knowledge alone is not enough to sway people's attitudes toward complex technology and science, such as gene editing or climate change. In this case, Washington State University researchers found that trust in the autonomous vehicles' reliability and performance played the strongest role in improving perceptions of the technology's risk. That may be critical to whether this technology will ever be realized, said Kathryn Robinson-Tay, lead author of the study published in the Journal of Risk Research. Dennis And finally: Finally, maybe a structural battery, a few years and maybe decent energy density. 'Weightless' battery stores energy directly in carbon fiber structures
June 18, 2024
The "massless" battery Chamers University of Technology researchers showed in 2021 served as an early prototype for Sinonus Sinonus Building on the trailblazing carbon-fiber-as-a-battery work started at Sweden's Chalmers University of Technology, deep-tech startup Sinonus is working to commercialize a groundbreaking new breed of multifunctional carbon fiber. In its vision, the wonder-composite will save weight not merely because of its famously low base weight but because it will double as a set of energy-managing electrodes, becoming a structural battery that cuts reliance on the traditional standalone battery pack. The company believes this style of energy storage could help revolutionize everything from electric aircraft to windmills. Imagine an electric car that isn't weighed down by a huge, kilowatt-hour-stuffed battery. It wouldn't need as much power to drive it forward and could rely on a smaller motor, saving yet more weight. Or imagine an eVTOL that could take off without lifting a lithium-ion anchor that requires it to be back on the ground within an hour for charging. Or a windmill with blades that work as their own batteries, storing energy during low demand periods for distribution at peak hours. Sinonus hopes to write a future in which all those visions come true. It's hard at work on a new breed of smart carbon fiber capable of serving as the electrodes of an integrated battery."
Dennis
Dennis, Thank you for all these ideas; although very early (of course!), I love the idea of the car body being made of the battery, if we can keep it from blowing up or catching fire. I continue to think that graphene is the answer to such puzzles and opportunities. It would not surprise me, for instance, if it turned out that graphene layers, rotated vs. each other at distinct angles, provided enough Ezero potential to start acting as both terminals and batteries. This would certainly fit with its other strange geometric electronic capabilities. And I also agree about trust vs. tech in autonomous cars and other machines. We have been pushing this idea regarding AI in general, and Explainable AI vs. GAI; the latter is not trustworthy, whereas the former is the path to trust. Thanks again for writing in,
Mark Anderson
* On August 21-23, Mark will be attending the Veterinary Innovation Summit in Kansas City, Missouri. * On August 24, he will be attending the annual Seva / Larry Brilliant birthday affair in San Francisco. * On September 11-12, Mark will be presenting on behalf of Pattern Computer at the LSX World Congress USA Conference in Boston. * And on October 20-23, he will be speaking on a variety of subjects, and hoping to see many of our SNS members in person, at the FiRe 2024 conference at the Terranea resort in Palos Verdes, California.
In between times, he will be enjoying the best blueberries in all of San Juan County, bar none.
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SNS: IF TRUMP WINS: A Deep Dive into the Decadal Financial and Geopolitical Consequences of a Trump Regime