Did You Fall For Trump's Latest Trick?

By Chris Rossini

Libertarians are like people who go to a magic show, only to point out that the magician really didn't cut the girl in half, and really didn't make the tiger disappear.

It's not an easy job because everyone else at the show wants to believe what they see:

-"What do you mean the Patriot Act has nothing to do with Patriotism?"
-"What do you mean they don't hate us for our freedom?" 
-​"What do you mean the minimum wage ravages the poor and low-skilled?"

It's not an easy job spreading the message of liberty. Everyone else is trying to enjoy the show.
​
Well, this week President Trump attempted to bamboozle America when he tweeted the following:

Great jobs report today - It is all beginning to work!

— Donald J. Trump (@realDonaldTrump) May 5, 2017

Over 60,000 liked the message and more than 11,000 retweeted it, so there are plenty of people enjoying the show.

But for those who get pleasure from understanding the truth, here it comes.

Take a look at the following chart, courtesy of EconomicPolicyJournal.com. It shows that unemployment has been dropping since the 2008 financial debacle, when the Federal Reserve started counterfeiting money by the trillions:

Look all the way to the right of the chart and you'll see where Trump came into the picture.

The President tweets that his policies are "all beginning to work."

Obviously, that's complete nonsense, but it gets a lot of applause.

Now, there will be others who will look at the above chart and come to the conclusion that President Obama must have been some kind of economic genius.

That too is complete nonsense.

The truth is that presidents have minimal affect on the economic business cycle. The booms and busts in our economy are created solely by The Federal Reserve.

Presidents merely piggy-back.

When the Fed creates an artificial boom, the president that happens to be in office jumps on the opportunity to claim credit for it (like both Obama and Trump have done). 

When The Fed brings on the bust (as they must) the sitting president goes into blame mode. The president won't blame himself of course, and he won't blame The Fed. But everyone else is fair game.

Since 2008, we've been in the artificial boom phase. The Fed counterfeited so much new money and credit that a new boom (albeit a very weak one) is still upon us.

At some point, The Fed will pull the plug, and the bust will be bigger than 2008.

You can bet your last debased paper dollar that if that happens when Trump is president, he won't be attributing it to "his policies."

​Now, let's all get back to the show!

In the meantime, before the next bust arrives, you'd be well served to check out Dr. Paul's wonderful book: