The Titanic as ‘an iceberg loomed’ is how Guggenheim’s Minerd thinks of today’s stock market


You are still thinking in literal terms. Creating wealth is not a figure of speech. Every human of note has taken part in that process. Whatever system of economy and/or government bent to facilitate that person's (often group of peoples') will.

Here's a good example, using modern methods of capitalism, that magically create wealth: speculation. Remember derivatives? Value was created, from an idea.

Indeed we eventually "paid" for it, but not in the form of overt wealth siphoning, but denial of opportunity. All the capital shrunk up as BOTH the dnc and gop convinced everyone our glorious empire would collapse unless we paid a ransom to central banks (I bet you knew those TARP funds bailed out foreign banks too, didnt you) and our credit-driven, consumer society ground to a crawl while normal people scrounged two mcjobs to pay for real things with real money. We didn't even bother to honor capitalism, by propping up zombie banks instead of letting them fail, and a lot of that wealth persists today, albeit in the hands of a few.

Do you begin to see what I mean? The gamble with Trump is betting that he's familiar enough with the levers of finance and trade to generate a platform for genuine prosperity, real wealth. Our country making things and making a ton of money from it, besides the tech sector. More industry verticals making real things, creating more jobs and consumers, etc etc etc.

Whether you think he's capable of such, remains, of course, a topic of heated debate. Obviously, more time needs to pass to understand the results, if any.

and Trump is throwing it away.
- start a trade/tariff war
- throw away existing trade agreements
- cancel a pan-pacific trade agreement that would have eased access to Asian markets and put real pressure on China long term
- pass a massive tax give away for the wealthy that is already grossly exacerbating US debt
- cancel a national health care program that was just reaching its planned plus years where the pools would start flattening costs.

In simple terms... Trump is spitefully sucking the wind out of the nations economic sails. Larry Kudlow is a dunce about national and global governmental obligations (he knows industrial markets - thats about it).

Amazon couldn't become the world's biggest retailer if there were no money to spend. They get their money from their customers. The can't just start printing money. Facebook's gets its money from it advertisers. They don't just print money either.

The banks can create money out of thin air. You give them an IOU and they change the balance of your account to give you money.

The Fed's checks are automatically good, so they create money when they write a check.

The government could create money if they wanted to, but they leave that to the Fed and the banks and just move money around with taxes and borrowing.