A historic Latina economist was pushed out under pressure. Now Trump’s economic advisor is heading in with power, secrecy, and a direct line to the Oval Office.
For the life of me, I do not understand the complacenc and apathy about what Trump is really up to with our financial system. He will:
1) Try to lower interest rates to zero which will benefit borrowers at the expense of savers. This will also create hyperinflation wiping out retirees and others on a fixed income. It will also allow all dollar denominated debt, both public and private, to be paid back in near worthless dollars.
2) Cause an overheating economy to crash the public stock markets which will cause a severe recession or worse. Of course, Trump and his cronies will then step in to pick up the pieces at a huge discount.
3) Encourage the movement of savings and investments by the public into cryptocurrency and unregulated private equity as the dollar is devalued and debased.
The difference in this eventuality and prior economic disasters is that the federal government will have no desire to step in to help anyone except the morbidly wealthy - end of story.
You really answered your own question. Trump’s intent has never been to manage the economy or the Fed for the benefit of the public at large or the average private investor; it is and always about using the power of the federal administrative agencies for his personal benefit and his mega wealthy friends. The proof comes out of his own mouth.
What will cure it is if Trump will keep his little hands out of the Fed's business. Lowering interest rates will not support the dollar, but do the opposite. He thinks it would be a great idea as it would help our big exporters. However, this assumes that we're going to do a 180 and become a big producer in the world rather than consumer. So, in essence, he wants to send us backward a hundred and fifty years into the gilded age.
For the life of me, I do not understand the complacenc and apathy about what Trump is really up to with our financial system. He will:
1) Try to lower interest rates to zero which will benefit borrowers at the expense of savers. This will also create hyperinflation wiping out retirees and others on a fixed income. It will also allow all dollar denominated debt, both public and private, to be paid back in near worthless dollars.
2) Cause an overheating economy to crash the public stock markets which will cause a severe recession or worse. Of course, Trump and his cronies will then step in to pick up the pieces at a huge discount.
3) Encourage the movement of savings and investments by the public into cryptocurrency and unregulated private equity as the dollar is devalued and debased.
The difference in this eventuality and prior economic disasters is that the federal government will have no desire to step in to help anyone except the morbidly wealthy - end of story.
You really answered your own question. Trump’s intent has never been to manage the economy or the Fed for the benefit of the public at large or the average private investor; it is and always about using the power of the federal administrative agencies for his personal benefit and his mega wealthy friends. The proof comes out of his own mouth.
What will cure it is if Trump will keep his little hands out of the Fed's business. Lowering interest rates will not support the dollar, but do the opposite. He thinks it would be a great idea as it would help our big exporters. However, this assumes that we're going to do a 180 and become a big producer in the world rather than consumer. So, in essence, he wants to send us backward a hundred and fifty years into the gilded age.
I know. But the markets are so far out over their skis right now, and nobody seems to care. And a large dollar devaluation would be catastrophic!!
Will this cure that?