The Trump Corona Stimulus: The Spark of the Global Stagflation
In our previous posts, we said that our model from 2015 designated 2019 as the start of the Crisis Years which will lead to a global stagflation from 2020–2030, just the Nixon shock of 1971 led to a stagflation from 1973–1982.
- The crisis officially started on January 3, 2020 with the killing of Soleimani. This might seem insignificant relative to the Corona virus, but we shall prove in 2021 why this is important.
- It was strengthened by the Corona virus outbreak announced on January 5, 2020 which actually began from December 31, 2019
The Corona Virus recession sets up the stagnation, while Trump’s solution to it, as a $850 billion to $1 trillion cash infusion directly to Americans, sets up the rapid inflation:
In contrast, the quantitative easing from 2009 onwards did not create inflation because it only circulated money in the upper level of the economy — among banks and credit-worthy businesses (Adam Smith called this the circulation from dealers and dealers). Very little of it came down to the lower level of the economy — the people themselves (Smith called this the circulation from dealers and consumers).
This is fair because not all people are productive. If most of that money went to unproductive people, as what happens with Universal Basic Income, then consumption is increased without any increased production, leading to a rapid inflation.
The corona virus has hit nearly all countries, but no country has initiated a mass distribution of cash to solve its virus-recession. Trump is only doing this to save his presidency, not thinking about the huge mess it will create for the US and for the world economy that relies on the US dollar.
How We Came Up With The Prediction
Our model was able to predict the crisis accurately because we continued Adam Smith’s work of tracing economic patterns from the 13th century. The crisis is an offspring of European mentality which was carried over into the American colonies in the 17th century and then imposed globally through Bretton Woods in the 20th century, to create a global crisis in the 21st century.
All of this then works under the metaphysical maxim, advocated by David Hume, that mentality creates reality. The greedy human mentality has not changed and so the bad future reality should come at a certain time, as a crisis.
We guessed that the crisis could be sparked by anything: nuclear war, pole shift, asteroid crash, or ice age, among others. A pandemic is much milder than any of those, and is reason to be glad, and proves that the Supreme Entity is not cruel. In fact, our Superphysics, if properly developed, can theoretically solve pandemics faster than vaccines.
