Replacement Theorem Solution: “Liberate” The Capitulators
“Soon — they will all stand at the feet of the master and will wag their tails a little.” (Vladimir Vladimirovich Putin)
Summary:
· “Liberation Day” has liberated the Fed from its Congressional dual mandate and re-aligned the central bank with the “Onshore Mar-a-Lago Accord” imperative.
· “Liberation Day” has liberated a phase of Beggar-Thy-Trade-Partner deflationary trade competition into the global economy.
· “Liberation Day” has also liberated a phase of Beggar-Thy-Trade-Partner deflationary competition to accumulate US Dollars.
· Ontario has applied to become the 51st State of the USA, ahead of “Made-in-China” Mexico.
· Where Ontario capitulates today, the rest of Canada, which it financially supports, will follow tomorrow.
· The default Brexit status quo “Liberation Tariff” industrial response is to hollow out the UK economy and transfer it onshore to the US.
· Each nation that agrees to “negotiate” on Trump’s terms has already strategically lost the negotiation.
· The ECB “Hawks” are ready, in principle, to “liberate” new reserves into the Eurozone banking system.
· The ECB “Mice” are ready, in principle, to “liberate” new reserves into the Eurozone banking system, with Financial Stability QE (FSQE).
· New Eurozone banking system reserves will “liberate” economic and political union, in principle.
· OPEC+ complies with the energy security directive of “Mar-a-Lago Accord” by “liberating” 411,000 barrels per diem.
· The “Liberation Tariff” formula is a Replacement Theorem Solution, from first principles.
· The “Liberation Tariff” formula can be solved for global regime change by substituting migration for trade flows.
· “Liberation Tariffs” are a tax on poor nations that cannot afford US exports and have already been penalised by DOGE cuts to US foreign aid agencies.
· “Liberation Tariffs” are targeted at Chinese white-label, re-export hubs in the poor nations that cannot afford US exports.
· Tariffed poor nations will “liberate” migrants and export them to Europe/UK in vast numbers.
· European/UK “liberated-migrant” importers will regime change into Populist alignment with the “Mar-a-Lago Accord”.
· The Populist-aligned West will then repatriate imported migrants and regime change, at source, along old colonial lines, in poor nations.
· The “liberation” of President Macron’s prescient anticipation, of “Liberation Day”, signals pre-cognitive intelligence of the grand strategy behind it.
· The EU will be split between those who collaborate with Trump and those who resist.
· On “Liberation Day”, Fed Governor Cook opined the disinflationary outcome of Tariff Headwinds.
· “Liberation Day” +1 marked the fact that Chairman Powell missed the disinflationary key signal that, in a crisis, Mr. Market still has liquidity preference to hold US Dollar Cash rather than any other asset class or commodity.
· Mr. Market’s liquidity preference is a begrudging global acceptance of the US$ Exorbitant Privilege that signifies continued reserve currency status, and a multilateral vote for “Mar-a-Lago Accord”.
Extracts
· “Mar-a-Lago Consensus” has transitioned, “Onshore”, via “Mar-a-Lago Accord”.
· The halo effect, of the recent US Minsky Moment, highlights that the Fed is now two FOMC meetings out of re-alignment with the “Onshore Mar-a-Lago Accord” policy curve.
· The Fed’s misalignment raises the requirement for a less gradual re-alignment than Chair Powell’s “Transitory” rhetoric signals.
· President Trump has “Executively Nudged” the Fed off its employment mandate dataset onto his DOGE “Onshore” dataset.
(Source: the Author, March 22nd 2025)
· Biden’s “Friend Shoring” Washington Consensus has been hardened into Trump’s “Mar-a-Lago Consensus”.
· “Mar-a-Lago Consensus” is Unipolar.
· “Mar-a-Lago Consensus” is the fundamental global macro theme of the “Trump Trade” thesis.
· “Mar-a-Lago Consensus” prescribes sanctions first, followed by regime change second, to all those evil-doers who challenge the US Dollar’s Unipolar Global Reserve Currency status.
· “Mar-a-Lago Consensus” will transfer the global supply chain security cost from the US taxpayer to the global taxpayer/customer.
· “Mar-a-Lago Consensus” will boost the US economy and mitigate the cost of global supply chain security for nations that trade with the USA.
· The unipolar “Mar-a-Lago Consensus” reinforces the global energy security imperative, and aligns, with US Swing Producer status, to deliver a disinflationary global economic stimulus, exclusively, to America’s trade partners.
· “Mar-a-Lago Consensus” and US Swing Producer status combine to reinforce the unipolar “US Exorbitant Privilege”.
· “Trump’s Technocracy” is proselytizing “Mar-a-Lago Consensus” into disinflationary, fiscal deficit shrinking, productivity gains.
(Source: the Author, December 7th 2024)
· Through the process of Modern Monetary Monopsony Theory (MMMT), the insolvent ECB will replace toxic COVID balance sheet assets, with new European military fiscal deficit assets, in order to expand Eurozone banking sector reserves.
· The process of European military fiscal deficit asset creation is contingent upon an expansion of Global Reserves.
· It is ironic that an alleged ECB Hawk is calling for hyperinflationary new reserve creation under the guise of financial stability policy tightening.
(Source: the Author, March 22nd 2025)
· OPEC+ compliance with the global energy security parameters of the “Mar-a-Lago Accord” may be driven by market-share preservation rather than altruism.
· POTUS’ 2025 State Visit itinerary affirms the primacy of the global energy security imperative.
(Source: the Author, March 8th 2025)
· Mr. Market is price discovering that “DOGE is the equivalent of Paul Volcker for the incoming secular economic expansion and bull market”.
· An anonymous ECB cadre subscribes to the Key Signals thesis that the Fed is being re-aligned with DOGE to weaponize monetary policy.
(Source: the Author, March 29th 2025)
