The West has backed itself into a debt corner from which it cannot escape.
The only way out is default or a massive tax in the form of heavy inflation.
I’m not sure what Trump’s long game is here. I suspect there is not one and this is just him wanting to keep the economy cooking into the election.
I agree. But, considering the alternatives, I understand his stance. But, of course, I’d like to also think past 2024.
Trump’s long game is to grow the economy and reduce the influence of the corrupt Federal government and a Federal Reserve that’s wrong about economic growth causing inflation.
You may want to reconsider your claim that the West is doomed.
Bingo. We are sacrificing the value of our savings to keep the interest low. Inflation just got a steriod shot in the rear end.
Is it worth it to ensure a Trump 2nd Term? Actually, I think so and I'm a really hard over on the subject of inflation and The Fed creating money from nothing, flooding the market with it and collecting interest to boot.
I think Trump understands this. He is a real estate guy. He knows about inflation.
A tactical decision by Trump. I believe he knows better.
1) The US is part of “the West” but we are in a vastly different situation. Yes, our debt is growing (damn it) but so is our economy, and we remain at 100% debt to GDP ratio. Better by far than the rest of the developed world...and China.
2) This rate cut was unnecessary for the US economy, but useful to defend, at least a little, from the monetary devaluation of other nations. A strong dollar hurts our economy more than it helps it.
3) THE most important economic calculation right now is whether or not Trump gets re-elected. He’s done a tremendous job, almost on his own. A second term will be a game changer for the next 50 years.
The founding fathers would know what to do in a financial mess like this. They'd put up a 25% import tariff and raise it 2% per year until both the trade deficit and budget deficit were zeroed out.
“The only way out is default or a massive tax in the form of heavy inflation.“
Yep. We ain’t voting our way out of this.
“I’m not sure what Trump’s long game is here.”
The man can read a balance sheet. He knows just how screwed we are.
L
Everytime the Fed tightens they take dollars out of circulation. Trump needs rate cuts to put more dollars into circulation to fuel the expansion of our economy.
The Fed has been a major cause of every recession since it was created...then it “saves the world” by semi-correcting the screw ups...and when they start to work, it immediately begins the process of slowing things down again...Trump wants them to not have such freedom to screw with things.