History will say that the conjoining of monetary and fiscal policy via a monetary financed deficit, generated a massive asset bubble that exploded at all time highs...
"We have a 5% deficit with the lowest real rates in U.S. history and an economy at full employment. This is an explosive combination"
"We have a 5% deficit with the lowest real rates in U.S. history and an economy at full employment. This is an explosive combination"
"Trump used his pulpit before the Economic Club of New York to bash the Fed, a diversion from what many hoped would be a positive speech on trade progress."
Recall that in a very rare move, Trump passed over Janet Yellen for re-appointment, instead nominating someone more to his liking:
Some say it was because she is a Democrat. Others say it's because she is a woman - and not the type of bimbo he prefers.
But it turns out, she was just too short:
"A Washington Post report that quoted current and former officials said Trump on multiple occasions discussed giving Yellen another term at the central bank but was concerned over her height. He feared that at 5 feet and 3 inches she just wasn’t tall enough to get the job done"
Make no mistake, the biggest risk we face is the fact that the current president of the United States is a FULL retard. Not half. FULL.
His addiction to free money stems from his proclivity for bankruptcy by borrowing as much money as possible in order to pretend to be wealthy. Something he excels at.
Many wealthy people have warned repeatedly about the risks of "socialist" MMT (Modern Monetary Theory) - the monetization of deficits. What they warned about was hyperinflation by giving the middle class too much printed money. They never warned what would happen if THEY were given too much free money.
Now, this conjoining of fiscal and monetary policy to inflate ludicrous asset bubbles, is a runaway train. Literally. It's out of control.
And when, not if, it crashes spectacularly, the "system" will be at certain risk. All because "someone" had a love affair with cheap money, and believed there was no downside to unlimited borrowing.
Sadly, there is no such thing as "free" money.
But some people don't learn too good.
"Jones gained notoriety in the late 1980s after calling the 1987 market crash."
"Jones gained notoriety in the late 1980s after calling the 1987 market crash."
