Currency Devaluation. Tariffs. Disproportionate Representation of Large Landowners in the Senate. 2 12 2026
In an attempt to pay off the debt, at 100% GDP, the dollar is being devalued. It has fallen more than 10% since Trump took power, which makes the value of the debt smaller as it is in dollars, and if the dollar is worth less nominally the value of the debt falls.
It is simple; a hundred dollars this year is worth $90 instead of 100$ when Trump took power. Thus if you owed 100$, but the currency was devalued, you would only have to pay 90$ worth of debt in last year’s money.
We see the devaluation clearly when we look at gold prices on the market, up 70% in the past year.
Which points to a greater devaluation, and an attempt to stem losses by investing in a more stable form of currency. Silver too was up 130%, a remarkable example of the devaluation of the currency.
When the dollar is worth 10% less, the value of everything goes up 10% in price. This would be part of the real inflation rate, about 10% in Trump’s first year in office. A devalued currency also makes the value of wages go down, as more wages have to be paid for the same product as before the devaluation.
So wages have to rise, or workers undergo privations. Wages must rise, the tariffs also cause this. The tariffs make American exports able to be sold for more money, as competitors’ products are raised in value, allowing American export products to rise in value.
It’s like the Corn laws in the 19th century, it made it so British exports of food were able to be sold for higher prices. It made competition easier for British exports, by raising the cost of grain imported.
It was repealed in 1846, somewhat due to the Irish famine. It was viewed as a free trade measure.
The combination of tariffs and a devalued dollar mean the working class are being more heavily exploited, as wages real value fall 10%. Combined with the rise in price of imported goods, which are now being tariffed, wages must rise. But what if they don’t? It means more hours must be worked to achieve the same wage. The burden is clearly riding on the proletariat.
The bourgeoisie says that the tariffs costs will not be paid for by the consumer. They suggest the cost will be paid for by the producer of the commodity. In case they haven’t noticed, the price of everything is rising, while the currency keeps falling in value. Clearly tariffs have risen the prices of commodities, the costs are being passed on to consumers.
The bond market in the form of the national debt may be a safe haven for investors. As debt increases there may be surplus value to be gained by speculation on the state’s debt. The assumption is it is going to be paid off, which is probably likely, but first the country’s debt rating may fall, leading to a crisis. It is a risky venture.
Trump wants to lower the interest rate, making it easier for banks to raise capital. This will effectively subsidise even greater segments of the economy, like the farm subsidies.
“The legislation Trump has called the One Big Beautiful Bill locked in more than $65 billion over 10 years in agricultural support programs.”
The Washington Post 12 28 2025
Large scale land ownership would be in question without the massive state expenditures of big farms. It seems to just be part of American agriculture, and political representation of the large landowners is large. They know Trump has deep pockets, like the banks who benefit from low interest rates.
It is the big banks who benefit from the lower interest rates, it allows them to raise capital easier. Combine this with “too big to fail” legislation, you get a sure fire way to massively increase the power of the big banks. Given the smaller banks are not “too big too fail”, you see monopoly capitalism brewing. As the smaller banks fail, the big banks buy their assets for ridiculously low prices, consolidation of ownership on a massive scale.
The penny being phased out is an obvious effect of devaluation of currency. Stores were already not paying pennies as of 2026. The penny is on its way out, the 50$ bill on the way in.
The combination of devaluation of the currency and tariffs makes workers have to work more hours to be able to have the same standard of living they would have had without devaluation and tariffs. The large landowners benefit as they can export at higher prices due to the rise in the cost of food due to tariffs. But even with this, they still require massive money from the state to stay afloat.
The corn laws were lifted, as the city had enough of supporting the large scale landowners. A similar moment could be coming, the Senate will be where you will see it. It is two senators a state, the large landowners disproportionately weigh in on the city this way. Structural change of the senate could be coming, as the cities suffer under the large landowners, represented by two senators a state.
Nicholas Jay Boyes
Milwaukee Wisconsin
American Democratic Republic
2 12 2026
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