Reckless and undisciplined, Trump, they fear, may send the country into financial chaos…and unleash the populist mobs against the Washington and Wall Street insiders.
Good jobs numbers are supposed to encourage the Fed to ‘tighten’ — that is, raise interest rates. This would further strengthen the dollar…and push Treasury yields higher.
As the one-year chart of banking sector barometer Commonwealth Bank [ASX:CBA] shows, the sector doesn’t look too exciting.
One represents the international Deep State elite, desperate to hold on to its power, wealth and privileges. The other promises an American ‘Brexit’…
Donald Trump let it be known last week that if the US federal debt begins to weigh too heavily on his shoulders, he will do what he does best — renegotiate.
The common folk know something is wrong. So, they turn to Trump, who promises to ‘kick ass’…or to Bernie Sanders, who promises to tax and spend on their behalf.
Trump was using the Fed’s cheap credit to finance real estate in the heart of the financial world.
What does Donald Trump think about the stock market? Investors, are ‘being forced into an inflated stock market and at some point they’re going to get wiped out… We’re in a bubble right now.’
Is Trump a Neanderthal? Yes, we all are. The story of our species is 300,000 years old. But what does this have to do with money?
Then, no sooner had we all relaxed when, on Sunday, a new war flared up — the war between Donald J. Trump and the Deep State itself. Many people think this war is real. Donald J. Trump, they believe, is fighting for ‘the people’…and the Deep State is trying to stop him.
In one corner, we have The American Dreamer: the Blond Bombshell himself, Donald J. Trump. In the other, there is Xi Jinping of the Great Red Hope, determined not to be the Last Emperor of the Middle Kingdom. Pretending to do battle, both are really on the same team…working together towards the same goal — separating the fans from their money.
Yesterday, stock markets bounced back in the afternoon, after investors began to think that maybe Donald Trump wasn’t really serious about a trade war. One day, perhaps soon, they won’t be in such a good mood. And the market won’t bounce back. Not that the end is necessarily nigh…but, in theory, it must be out there somewhere.
The Turnbull government is pushing for tax cuts totalling $65 billion — lowering our rate gradually to 25% by 2026. The coalition argues that this would allow us to stay on par with other major nations. More controversially, however, the cuts are being peddled as a necessary step to stimulate wage growth. Can tax cuts solve low wage growth?
Malcolm Turnbull is taking a leaf out of Donald Trump’s playbook: Betting the house — and his re-election hopes — on businesses to save our economy. And it seems as though this is where the battlelines will be drawn for the next election.
In short, Donald J. Trump is a big spender. Typically, big spenders — trying to impress — spend money they don’t have on things they don’t need. And, in government, unless the Fed is loosening credit at the same time, this causes bond yields to increase.