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Happy Vassals

Like 6

By Bill Bonner, Wednesday, 28 January 2026

The war against ‘terror’ was always destined to blow back on the US. Now, we have ‘domestic terrorists’ on our streets. Or, so they say.

It seems so obvious. At least to those of us who still struggle with old fashioned two-dimensional chess and “first order effects.” Everything the Trump administration does has a coherent purpose.

In the headline news are the first-order effects…the American bishop blunders over to where it can be taken by China’s rook. Oops. ScandAsia:

Finnish prime minister arrives in Beijing for four-day visit to China

Asianikkei.com:

UK leader Starmer set to visit China to boost trade ties

Starmer’s visit — which will include a stop in Tokyo on the way back — is taking place a week after his government approved a controversial plan by China to build its largest diplomatic mission in Europe in London’s financial district, despite espionage concerns raised by local residents and the White House.

The Guardian:

‘Repatriate the gold’: German economists advise withdrawal from US vaults

Shift in relations and unpredictability of Donald Trump make it ‘risky to store so much gold in the US’, say experts

Bart de Wever, Prime minister of Belgium:

So many red lines have been crossed [by Trump]. Being a happy vassal is one thing. Being a miserable slave is another. If you back down now you are going to lose your dignity, probably the most important thing you can have in a democracy.

It used to be that foreigners were ‘happy vassals’ of the US empire, proud and content to do business with the USA, in dollars. Now, they have to be threatened. How? More tariffs, of course. Los Angeles Times:

Trump threatens Canada with 100% tariffs over its new trade deal with China

The first order effects are unmistakable; the American empire grows more isolated…and weaker. But the Trump Team is said to be looking beyond the obvious consequences…it is supposed to be playing ‘three-dimensional chess’ or looking at ‘third order effects.’.

That might be true. But our view — admittedly a small minority view — is that Team Trump is aiming for an outcome of which it is unaware…the destruction of the US empire. That is its true historical mission.

How else would you explain its foreign policy? And what about what is happening back in the homeland?

If you wanted to undermine the empire, what would you do? At home and abroad, you’d count on your deficits, inflation and tariff taxes to weaken the dollar and enfeeble the economy. But you’d also try to create fear, antipathy, and chaos so that neither allies nor citizens would trust your centurions.

Abroad, it would have been a piece of cake to negotiate quietly for more bases — or whatever — in Greenland. And at home, it would have been very easy, and un-provocative, to send out polite agents, properly dressed and properly trained to arrest real, illegal immigrant criminals. (By some counts, the Obama administration deported more illegal immigrants, with none of the hoopla.)

Both efforts would have cost peanuts and had the support of almost everyone. n. Nobody is against deporting violent criminals or setting up forward bases near the north pole, if necessary. Instead, Trump sent out threats and thugs, turned Europe and Canada against us…and much of the US population too. Now the foreigners are lining up to salute the Chinese premier…and back at home, Trump has become wary and restive.

But in his three-dimensional chess world…maybe that was the point?

Gold rose to almost $5,100 yesterday.

Stay tuned.

Regards,

Bill Bonner,
For Fat Tail Daily

All advice is general advice and has not taken into account your personal circumstances.

Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

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