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The Beginning of the Defeat of the Bretton Woods System
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The Beginning of the Defeat of the Bretton Woods System

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WASHINGTON — January 12, 2019

The world is again on the verge of chaos over Trump canceling his trip to the World Economic Forum in Davos, Switzerland. This blow from Trump speaks to his intentions to eliminate the well-known Bretton Woods system. He tried to minimize costs by canceling the trip. By not going to Davos, Trump is saving on long negotiations with business leaders, protocols, time, etc.

And there will be no second chance — the next forum is in a year when Trump will be preparing for the upcoming 2020 elections. So why did Trump cancel the trip? Most likely because of the acute situation in the US.

A few days ago, rumors spread in Washington that Trump will appear on TV to announce the introduction of a state of emergency. Trump himself later confirmed this information saying that if the government refuses to finance the wall on the U.S.-Mexico border, he will be forced to resort to drastic measures. In fact, this will allow him to deal with the budget, and build a wall, and besides remove a significant part of the problems with the opposition of Congress.

"I may declare a national emergency dependent on what’s going to happen over the next few days," Trump told reporters Sunday before departing to the Camp David presidential retreat in Maryland for what he termed "meetings on Border Security and many other topics" with senior White House staff.

The only thing that probably stops Trump now is the courts and the threat of impeachment. Democrats have already threatened a legal fight if Trump tries to declare a national emergency. "He'll face a challenge, I'm sure," Senator Dick Durbin, Democrat of Illinois, said Sunday on CBS's Face the Nation.

Washington Democrat Adam Smith, the incoming chairman of the House Armed Services Committee, said Trump has the authority to declare an emergency and have the U.S. military build the wall but that such an action would likely be challenged and would be a bad use of defense spending.

"In this case, I think the president would be wide open to a court challenge saying, 'Where is the emergency?'" Smith said on ABC's This Week on Sunday. "You have to establish that in order to do this."

Democratic Representative Adam Schiff of California, chairman of the House Intelligence Committee, disputed that the president has the power to act on his own.

"Look, if Harry Truman couldn't nationalize the steel industry during wartime, this president doesn’t have the power to declare an emergency and build a multibillion-dollar wall on the border," Schiff said of the former president on CNN.

But, he recalled the events of 1952, when Truman declared a state of emergency during the Korean War to take control of the state's steel industry but the U.S. Supreme Court overturned that decree.

And in 1976, Congress passed the National Emergency Act, which restricted the President's right to declare such a state. And legislators have the right to use their powers in such cases to resort to "deterrence and counterbalance," up to the possibility of canceling the President's decision on the state of emergency.

It should be taken into account that at that time the country was at a disadvantage and in a military situation, and the result was a loss for the U.S. at the world level — losses in troops, the general fragmentation of the country in the postwar period, and much more. And that was more than 45 years ago, under a different system with different values. Now we have a different picture and a real threat.

Now we have:

●      Trump's refusal to sign a bill to abolish the federal government's shutdown

●      The refusal of the House of Representatives to make concessions to the President

●      The refusal of the House of Representatives to allocate funds for the wall construction

●      Mexico's refusal to pay for the wall

●      A demonstration at Washington and McAllen

●      Calls for the FBI and the federal government to provide funding

Republican Senator Richard Shelby of Alabama said in response on Fox News that Trump has some "inherent powers" to bypass Congress, but that border funding must be done the right way, via legislation.

Let's speak in plain language. What inherent powers? Trump's powers are a lack of fear. His presidency shows he is generally hard to scare.He perceives himself as a hero and the whole situation of the last years, again and again, strengthens his internal position. But, unlike Bush Jr. (who most likely had such a moment too), he is an independent player with very strong support.

By the way, it is possible that George W. made the first attempt of non-banking elites to break out of the financial fetters — through the strengthening of the MIC in all senses of the term, though it failed. Then they decided to go the other way: not a direct strengthening of the US’s role in the world, but, on the contrary, a weakening of its role with a corresponding decline in the financial sector.

Thus, Trump has probably calculated everything a few moves ahead and realizes that now is not the time for a state of emergency. Most likely, talk of it was merely propaganda to improve the current situation — and that requires being in the workplace, which is probably why he didn’t go to Davos.

We’ll see what happens next. So far we have seen that Trump copes well with such tasks. Public opinion has already decided to blame the Fed leader if there will be a collapse, and the Fed has publicly said that it is necessary to soften monetary policy, that is, to increase the supply of money. That is, in fact, Powell admitted his weakness.

Of course, the Fed is still under the control of the global financial elite. But Jerome Powell himself understands that he won’t get away with anything, because if he is charged it will be heard by judges who have all the prejudices of those growing up in America, including messianic thinking of “America above all.” Even Powell won’t be able to argue that the interests of the global financial elite matter more.

According to many analysts, the results of the current political battle will be seen this year. If Trump loses, it is safe to say the world will change for the worse for many — China, Europe, Russia. Several world powers could even collapse.

But if Trump wins, problems will increase dramatically among senior partners-liberals. And here, too, a lot of interesting things could happen. But, again, this will inevitably cause serious changes in the modern world elite. The calm will continue only as long as Trump has a shaky balance with financiers. And judging by the fact that the overall tension is growing and growing, the abscess could burst quite soon.

Author: USA Really