Sergei Glazyev: Trump's insane pursuit of "Making America Great Again" may accelerate America's collapse. The "rare" deal with Ukraine and the trade war cannot save America from bankruptcy. Author: Sergei Glazyev Photo: U.S. President Donald Trump Trump's announcement of an agreement with Ukraine on managing its natural resources has triggered the following reflections. Trump has not yet achieved victory in domestic politics; he is facing neglect from the Federal Reserve regarding his calls, destruction and protests from many state courts against his decisions, as well as resistance from Washington's bureaucratic institutions, all of which weaken his efforts to optimize the federal management system. Due to the objective decline of the United States as a global power center, Trump cannot formulate good strategies. The economic pillars of the United States have shifted to China, technology has rapidly transferred to related countries, and ideology and politics have almost disappeared. Everything is developing as predicted in the book "The Last World War: The Initiation and Failure of America" (authored by Sergei Yuryevich Glazyev, published by World Books, Moscow, 2016). Trump is powerless to change the evolution of the world economic and technological landscape. His insane pursuit of "Making America Great Again" may accelerate America's collapse, just as 33 years ago, when another declining center of the world economic landscape—the Soviet Union—rapidly disintegrated after Gorbachev announced the "Accelerated Development Strategy" and "Reform." Trump attempted to prompt the Federal Reserve to ease monetary policy to stimulate investment growth, which is necessary for achieving his goal of bringing production capacity back to the United States from related countries. However, due to America's existing speculative mechanisms, the increased issuance of dollars has flowed into massive financial bubbles. In the short term, under Trump's significant increase in import tariffs, the increase in money supply will only lead to accelerated inflation. In the medium term, financial bubbles are unlikely to be converted into investments because this requires investor trust, while investors are very fearful of the unpredictable large-scale actions of the U.S. president, who fundamentally undermines international trade and monetary rules. The decline in the dollar exchange rate and the acceleration of inflation may trigger a snowball effect, causing long-term damage to America's investment environment. Another scenario is tightening monetary policy, which Trump also attempts to achieve to some extent through significant cuts in government spending. This would lead to a contraction in demand and further deteriorate the already tense social and political situation, affecting Trump's voter base. Meanwhile, compared to the skyrocketing costs of maintaining U.S. Treasury bonds, the results of actions to improve the efficiency of government agencies are limited and cannot achieve macroeconomic stability. Macroeconomic stability has been disrupted due to the flight of dollar assets caused by the freezing of Russia's foreign exchange reserves. Trump's trade war has exacerbated the trend of de-dollarization in the world economy, while the return of dollars has brought strong inflationary pressure. Therefore, domestically, Trump has no room for maneuver. According to the above two scenarios, he cannot free the U.S. economy from stagflation. He tries to escape困境 through external aggression. Forcing Ukraine's puppet regime to reach a deal on American control over Ukrainian mines, as well as proposing similar deals with Greenland and Canada, aims to create strong demand for the dollar outside the United States, while stimulating exports of high-tech products. The measures taken by the Trump administration at home to stimulate innovation activities and modernize the economy also contribute to production growth and efficiency enhancement. However, due to the speculative orientation of the monetary system, these measures are likely to ultimately lead to the expansion of new financial bubbles. Currently, the only foreseeable result of Trump's trade war with related countries is the flow of American capital from China to India. This points to a third scenario—an economic integration into the "India-America Economic Zone," similar to the "US-Symbiotic Economy" formed at the end of the last century (the combination of American capital and production from related countries). The dollar financial bubble will integrate into the Indian economy, providing India with a powerful source of investment to maintain high economic growth rates. This scenario could be win-win for both countries, allowing Trump to replicate the macroeconomic stability model of Britain under the new conditions through income inflows from India. However, there is another more natural development scenario for India—engaging in trade and economic cooperation with related countries and ASEAN, which have already formed the largest market in the world. It is highly likely that the CIA-orchestrated new incidents between India and Pakistan aim to exclude this possibility. If Western media begins to talk and write about "traces of related countries" in the near future, based on the common pattern of "the thief shouting 'catch the thief,'" it can be concluded that Trump will continue to promote the isolation of related countries through military and political means and bring India into the orbit of American interests. Furthermore, implementing new sanctions on countries trading with Russia may lead to the world economy splitting into two systems: unfriendly countries with India will form a trade system controlled by Washington, while related countries, ASEAN, and the Eurasian Economic Union will form their own trade system. However, the weakness in this situation lies in India, whose government values national sovereignty and may not be influenced by American provocations. If the escalation of external aggression fails to produce the expected effect of stabilizing the American economy, Trump has another scenario—he can abandon the dollar financial pyramid. He can accuse the Federal Reserve of destructive behavior and refuse to take responsibility for the dollars issued by the Federal Reserve. After all, from a formal perspective, the Federal Reserve is a private organization owned by large commercial banks and controlled by international financial oligarchs. Trump can declare that the U.S. government no longer takes responsibility for the dollar, giving the dollar the status of a private currency of the U.S. Federal Reserve. John F. Kennedy once tried this path, but a bullet from the deep state prevented him from taking the second step after announcing the issuance of Treasury currency. Trump is no longer afraid of assassination; he may go even further and announce the transition to a new, "real" dollar, issued by the U.S. government in encrypted digital form, while defaulting on Treasury bonds. He can defend this action by arguing that it is necessary to end the exploitation of the American people by the oligarchy, which has privatized the monetary system. In this case, the long-expected collapse of the world dollar system will occur. The dollar exchange rate will plummet, Treasury bonds will either become worthless or undergo restructuring, such as becoming century-long debts with symbolic coupons, which amounts to the same thing. The Federal Reserve will become a semi-legal oligarch club, which Trump equates with organized crime groups. The U.S. banking system will collapse. A new cryptocurrency system based on blockchain and without bank participation will be launched. The public and trade will quickly shift to this new system, starting from budget departments and government procurement. The Ministry of Finance will take full responsibility for maintaining the financial system, including issuing loans. A final crisis will erupt in the world dollar system, where losses will be proportional to the amount of dollar assets held. Trump can exchange old dollars from the Federal Reserve for new ones, redeeming corresponding debts. But this cannot save America's great status; America will head towards bankruptcy. World trade will shift to using each country's own currency. In a few years, BRICS and related countries will launch an international digital currency, the model of which we have already formulated. Author: Academician of the Russian Academy of Sciences Original article: https://www.toutiao.com/article/7502010924606259723/ Disclaimer: The article solely represents the author's views, and you are welcome to express your attitude by clicking the "Upvote/Downvote" buttons below.