Various figures and media outlets on the right are celebrating an anticipated economic boom they believe will result from Trump’s policies.
That is, in fact, what happened after he assumed office eight years ago.
But there is ample reason to believe things might be much different this time. A number of major clouds hang over the national economy and the financial markets. The spiraling, prodigious national debt and its impact on inflation is the first; but there are others also.
For instance, the New York Post has an article about Janet Yellen— Biden’s treasury secretary– and the manner in which she has mismanaged the government’s borrowing. (HT: Lynn). The article suggests this represents a ticking time bomb for Trump’s team.
I think it may be but one of at least several.
Copied this from Matt Walsh, https://www.facebook.com/MattWalshBlog
“Leftists have hatched a brilliant master plan to punish President-Elect Donald Trump for his historic comeback victory—a plan so cunning, it’s practically virtuous. They’re going to… save money. That’s right. In an act of defiance against Trump’s anticipated economic boom, some leftists have declared they’ll avoid spending on anything beyond absolute essentials. One account proudly announced they’d stop eating out, buying furniture, or even going to the movies until 2028. The revolution begins, apparently, with skipping a Starbucks latte.
Another leftist influencer with over a million followers joined the charge, urging people to “tighten their belts” and spend as little as possible over the next four years. This, they claim, will tank Trump’s economy and teach him a lesson about his “dumb policies.” It’s an inspiring rebellion: no new cars, no frivolous purchases, just hunkering down and holding onto every dollar. Essentially, they plan to punish Trump by becoming financially responsible adults.
The irony here is incredible. First, we had leftist women boycotting Trump by refusing to hook up with random men—a net positive for everyone involved. Now, they’re boycotting his economy by saving money and cutting waste. Again, objectively good life choices. Apparently, the only way to get leftists to behave responsibly is to make them mad enough to think it’s a form of protest. They’ll show Trump by finally adopting the values conservatives have been promoting for decades. Truly, a masterstroke.
At this rate, what’s next? Are they going to hit back at Trump by exercising more, eating healthy, and getting married? “Take that, Trump! I’m settling down, living within my means, and taking care of my body!” Honestly, if this is how they want to “resist,” we should encourage it. Who knew that the path to a better society ran through leftist spite?”
Pretty funny, Jaycee. We will see how long that holds. Of course, if the economy implodes, they may have no choice.
Indeed, TC: Years of artificially low interest rates have created all kinds of distortions.
Already manufacturing is in recession. Retail sales, adjusted for inflation, are in a three-year downtrend. A growing portion of commercial real estate debt is distressed. Will the most recent surge in government employment (probably Obiden finagling for BLS PR) be reversed in coming months?
I predict AI is a bubble similar to 5G if not the Dotcom. A lot of money will be spent to “supply picks and shovels” but profitability will be elusive. Nvidia now is like Cisco in 2000.
Yes, Healey, and other factors– rising debt in multiple portions of the economy, banks in trouble, an overvalued stock market, distortions also created by heightened money supply/ quantitative easing with the Fed and the treasury. But the federal debt is worrisome; when it will become a major factor is hard to guess.
“But the federal debt is worrisome; when it will become a major factor is hard to guess.”
The 10 year Treas. interest rate has risen noticeably since the Fed cut the Fed funds rate. Very possibly, an extra trillion of debt every hundred days is the reason, to wit, it may already be a major factor.
Another factoid I might have added to the above re the economy being less well than BLS stats and the S&P500 suggests: The total number of non-government jobs has decreased each of the last 9 months!
Yes, all of that, Healey. Lots of canaries in the coal mine.
To borrow a quote from Calvin Coolidge:
“After all, the chief business of the American people is business. They are profoundly concerned with producing, buying, selling, investing and prospering in the world. I am strongly of the opinion that the great majority of people will always find these the moving impulses of our life.”
Yes, Fred, left to their own devices, this happens in the United States. When government gets in the way, or mistakes are made by key players or institutions, people can get hurt.