Do not trade on the views expressed in this post. I am a veritable idiot and have been wrong time and time again.
Let’s start with history, but let us not be too specific. In the XIX century in the US the country was practically on the bimetallic monetary standard. Gold and silver coexisted peacefully like fish and men accordingly to W. Yet soon the powers in New York favored gold because it was closer to its interests and powers in the West of the country wanted “more money” so it looked up to silver as a helping hand in its desires. Ultimately, it was the New York bankers who had the upper hand and the US fell under the spell of the gold standard over which the bankers of New York and London had control.
Rewind forward. It is 2019, and a man who controls access to 2.5 billion people, at least “on paper”, wants to issue his own proto-money (just wait..). Just like more than 100 years ago he lives out west, in Silicon Valley. No doubt that the elites have two centers to gravitate to. New York with its banks controlling the flow of credit and paper money and the Silicon Valley being “the one and only future of the country” (since manufacturing has long departed). The Valley is indeed a customer of the dollops of credit and cash funneled through New York, but, but it has its manifest destiny looming in front of its elite, calling on it to dare and create a brave new world (just f*_k the Deplorables deprived of their manufacturing jobs). A man called Zuch has bit the hand, which feeds him and New York has taken notice.
The long-standing ambition of Elon Musk was to associate the word “disruptive” to making steel, copper, rubber, and glass into a car, sans common sense. We will not dwell on this but it suffices to say that history has intervened and Elon might be the first casualty of the fight between banking interest and primary mover and shakers of the manifest destiny of Silicon Valley.
The name of the game is “the fight for minds and hearts of the Deplorables” who still think in terms of morality. This quality is not “necessary” among the very rich and very poor but makes the core of being Middle Class in the US.
For a description of the state of justice in courts of SDNY district, I suggest blog entries in regards to Jefferey Epstein by Martin Armstrong at armstrongeconomics.com
Jefferey Epstein was a nice guy, only misunderstood (after all “loving” adolescent girls were OK in antiquity (slavery was then OK too(irony))), pining for companionship. Oh, what a tragedy of “almost decent” man!
Now enter Elon Musk, “the weasel man” trying to use Jefferey’s help to get out of a bind then denying Jeffrey (probably, three times before sunrise),
Oh, look, there is Zuch,
Now, the main course: ah, those immoral Silicon Valley types; drugs, sex, and alcohol. No, no, Jeffery never abuses drugs and alcohol (as close as it gets to Mother Theresa for Jeffery).
Even if I am wrong by a country mile I hope this was fun to just think about it.
President Trump has a completely different set of options in front of himself than any other president before him. Democracy (whatever we mean by it) exists in the US only because those in power had never been under the threat of being destroyed after the transition of power to a new administration. President Trump needs allies and a victory.
Up to this moment, there was peace between the New York bankers and the Silicon Valley, or I am deadly wrong because I do not dwell with the elites. If I read right the omens it might get really interesting just like in Chinese curse: “let you live in interesting times”.