Dawn J. Bennett, host of Financial Myth Busting, recently interviewed John Rubino, a bestselling author and publisher of the financial news site dollarcollapse.com. In the interview, Bennett and Rubino discuss his recently published articles, “Another Election Year, Another Bunch of Fake Numbers” and “Why We’re Ungovernable.”
“The point of that series is that when you borrow too much money, if you’re a country or an individual or a family, it kind of plays out the same way,” Rubio said. “Your life becomes unmanageable. And for a country, what that means is that the old ways of buying votes for constituencies stop working because you’ve used up all the money that you have to play with so you can’t provide good jobs for people and elections become harder and harder to run, and that’s what we’re seeing around the world right now, whereas what used to be slam dunk election.”
Rubino explained that all around the world people no longer trust the big systems to work for their benefit. Brexit, for instance, wasn’t supposed to pass in Great Britain. Britain voted to leave the European Union, though the polls right up until the vote said they would stay. Similarly, Donald Trump wasn’t supposed to win the U.S. election.
Another example is workers in the U.S. see all the free trade deals being passed, while at the same time factory jobs are being moved to China and Mexico. Therefore, free trade isn’t a viable deal for them. They also see interest being cut in a perceived attempt to make the economy grow faster, but what’s really happening is interest income from their bank account is evaporating.
“So your life gets harder and harder and you then are open to voting for people who point that out,” Rubino explained. “Donald Trump stood up there and said ‘The systems don’t work for you anymore. It’s rigged, and I’m going to fix that.’ And he said a lot of crazy things after that but people just heard the first part so they voted for him. And that’s the world we’re moving into now where these big systems don’t work and every election is this major cultural upheaval, so we’re headed that way fast and it’s only going to get worse.”
According to Bennett, an economic crisis is so many years in the making and we’re going through a great melt-up. Rubino said Trump cannot fix what’s coming because the U.S. has already borrowed money that’s going to cause nightmares in the future.
“You know, we can’t pay back our current debts so it doesn’t really matter if we borrow more and try to grow the economy in the future, which is Trump’s strategy,” he said. “You can’t fix excessive debt with more debt. So that crisis that’s heading our way is baked in the cake already.”
He continued, “What’s happening now in the financial market is just a typical political honeymoon. We’re seeing the potential benefits of new stuff and we love new things, the human mind is designed to focus on new stuff, so for a little while the new stuff is what we focus on but the negative side of future policies will only become apparent with time. Sometime in 2017 I think there’s going to be a reckoning in which it becomes clear that the system is broken and nothing that Donald Trump or anybody else around the world is doing will fix it and then at that point you get this massive panic. That’s what’s out there, you know, everybody heading for the exits.”