Where to from here? Will Trump and his new wrecking crew enable some reforms, or will it be business as usual? Is there any ray of light? The above article is prefaced by this quote:
I think we should wait of to see his actions before classifying them as wrecking ball. Give the guy a chance - even if you oppose everything he says and does. He has 4 years to prove himself and his team.
Agree. But the crux of the matter is this At the minimum I expect Trump's call for a rise in interest rates to be first order of business, with the resultant inflation which I think will start a bout of stagflation and that is a whole new set of problems to deal with. Also on the horizon is Trump's plan for massive infrastructure works, no doubt funded by the printing presses, which Trump has acknowledged as a convenient tool, along with bankruptcy. I'm mindful of a quote (I think it may be Bernanke), that if all else fails they'll 'destroy the dollar'. Circumstances seem ripe for such a scenario. Interesting days.
Yes, Julie, fiscal stimulus will be 'paid for' by Central Bank money printing. That destroys the US dollar. Also, the US dollar club currencies will follow - weakening currencies worldwide. The US would remain a major player in trade - so currency rate relativities would roughly continue for many countries.
Rickards is claiming SDR after a crisis in 2018. Presumably a trade level event with the "US Dollar" becoming some sort of local currency, allowing for quite a domestic devaluation, if that's the plan.
Do they teach the economics of how the US got out of the great depression in your schools? If not it is well documented. They had a labor army (work for welfare) and invested in nation building like the Hoover dam. Again, judge him and his team for what they achieve (or don't achieve). Pre judgment is literally prejudice.
On the contrary, it's argued that the "economics" employed by the Federal government at the time actually contributed to the severity of the Great Depression. Raising the minimum wage, increasing tariffs on imported goods, forcing thousands into labour programs using inefficient technologies and providing government subsidies to struggling industries all lead to economic, allocative and technological inefficiencies. In other words, industries produced stuff that consumers didn't want, wasting resources in the process employing equipment that was outdated, a few benefitted but there were thousands of losers.. Now while such policies may "employ" people, they hinder productivity gains and retard the spread of wealth in society - as evidenced by the length of the Great Depression. Trump's economic policies regarding trade and industry mirror those of Hoover and FDR, in a vain and mistaken attempt to force consumers to buy locally produced goods in preference to foreign goods. Trump fails to grasp the concept that trade is a two-way street, shutting off imports shuts off exports. The talk issuing from the populist media and our protectionist politicians across all nations reads like the narrative from the looters in Atlas Shrugged. [imgz=http://forums.silverstackers.com/uploads/753_screen_shot_2016-11-18_at_80043_am.png][/imgz] [imgz=http://forums.silverstackers.com/uploads/753_screen_shot_2016-11-18_at_80106_am.png][/imgz] [imgz=http://forums.silverstackers.com/uploads/753_screen_shot_2016-11-18_at_80144_am.png][/imgz]
PRESIDENT Donald Trump, the new "Great Satan". Why, because he defeated a socialist! The more they fear, the more they HATE! HATE! HATE! OC
Coupled with Trump's wish to actually encourage energy exploration rather than shackle the industry in green tape, the timing of this news could prove to be a huge boost for the US economy - and give Russia and the Middle Eastern oil producers the sh*ts: "USGS Announces Largest Oil And Gas Deposit Ever Assessed In U.S." Peak oil, anybody? What's that noise? It's millions of Greenies' heads exploding like in the movie, 'Mars Attacks'. Well, those that hadn't already gone Pop! when Trump was elected...... http://www.npr.org/sections/thetwo-...ounces-its-largest-oil-and-gas-discovery-ever
I'd class Trump's trade policies as socialist. He's intent upon externalising the costs of supporting inefficient US industries onto taxpayers and consumers.
I think the congress will give him 6 mths to prove himself as well as acting as part of the team - Republicans that is... not Trump. I also heard that if he's a loose cannon then Mike Pence will take his reign....
He has been so far. I'm crossing my fingers that was all popular politics and dog whistle politics for the election. Interesting times.
Agree, let's wait until the man is actually sworn in and doing the job. He will be 'on probation' until the so called 'honeymoon' is over and the voters get a good look at him. From what i have read and been told the 'white male' elected him, and they will throw him out, or shoot him, if needs be. OC
Donald is not Satan mate, he's the greatest salesman ever... He sold it to the US people and they bought it!
