The shift in Central banks holdings and United States treasury bonds would spell out a number of possible problems. Obviously, the first problem would be who would buy our debt new debt as well as refinancing of old debt. I could foresee a scenario that happened in Japan, where the federal reserve would become the final market maker and that they would be buying everything to support the market. Problem with that is it will cause more inflation. The federal reserve literally will be printing money to buy our own debt which will not only cause inflation, it will also cause a valuation of our currency of whatever’s left of it.
The other problem could possibly be the default on the debt we have ourselves in with $36 trillion of debt and counting our interest expense on the debt now is over $1 trillion a year that’s not sustainable. Eurasia, moving away from the dollar will exacerbate our own fiscal problems here. I don’t believe the policies outlined by Trump are going to help this situation.
The sad fact is that we are so far in debt the only possible way to avoid default is the tried and true kick-the-can-down-the-road "solution" to print more money and devalue the currency thus lessening the value of the debt but causing more inflation. Or, there is the other tried and true method: war.
What! A financial revolution that western power/banking elites must endure? Surely not! Revolution is for the below-stairs people - the wokism, multiculturalism, the transgender social scatology - let them eat that, and whatever else we deem for them. Cake and circuses? If they’re lucky - make it crickets and Jerry Springer.
There are lots of “former Trump advisors” who were recommended by beltway insiders whom Trump will never listen to again. Unless Navarro or Lighthizers names are mentioned I’m not paying much attention to anything the MSM claim regarding economic advisors.
Yes, the finance sector is very worried. Trump economics favor Main Street over Wall Street. Wall Street has been running the show for well over 30 years to the severe detriment of the US middle class. Manufacturing is gone along with the great jobs it brought. And you know what is needed to keep the show going? Wars, lots of them. Can't have people getting along. And the US middle class pays with their lives along with their money. The hate I have for the pols and the financial people running them would be bigger than 100 Krakatoa's if it could be channeled on them.
The shift in Central banks holdings and United States treasury bonds would spell out a number of possible problems. Obviously, the first problem would be who would buy our debt new debt as well as refinancing of old debt. I could foresee a scenario that happened in Japan, where the federal reserve would become the final market maker and that they would be buying everything to support the market. Problem with that is it will cause more inflation. The federal reserve literally will be printing money to buy our own debt which will not only cause inflation, it will also cause a valuation of our currency of whatever’s left of it.
The other problem could possibly be the default on the debt we have ourselves in with $36 trillion of debt and counting our interest expense on the debt now is over $1 trillion a year that’s not sustainable. Eurasia, moving away from the dollar will exacerbate our own fiscal problems here. I don’t believe the policies outlined by Trump are going to help this situation.
Stockman thinks it would help... but not nearly enough:
https://www.zerohedge.com/economics/trumps-19th-century-solution-fiscal-disaster
The sad fact is that we are so far in debt the only possible way to avoid default is the tried and true kick-the-can-down-the-road "solution" to print more money and devalue the currency thus lessening the value of the debt but causing more inflation. Or, there is the other tried and true method: war.
What! A financial revolution that western power/banking elites must endure? Surely not! Revolution is for the below-stairs people - the wokism, multiculturalism, the transgender social scatology - let them eat that, and whatever else we deem for them. Cake and circuses? If they’re lucky - make it crickets and Jerry Springer.
There are lots of “former Trump advisors” who were recommended by beltway insiders whom Trump will never listen to again. Unless Navarro or Lighthizers names are mentioned I’m not paying much attention to anything the MSM claim regarding economic advisors.
Right. I'm not suggesting anything about what policies will actually be adopted, only that the finance sector is worried.
Yes, the finance sector is very worried. Trump economics favor Main Street over Wall Street. Wall Street has been running the show for well over 30 years to the severe detriment of the US middle class. Manufacturing is gone along with the great jobs it brought. And you know what is needed to keep the show going? Wars, lots of them. Can't have people getting along. And the US middle class pays with their lives along with their money. The hate I have for the pols and the financial people running them would be bigger than 100 Krakatoa's if it could be channeled on them.