Trump: Cut Rates 100 Basis Points, Restart QE

[r3volution 3.0]

His latest tweet on the subject:


The Fed Rate, over a fairly short period of time, should be reduced by at least 100 basis points, with perhaps some quantitative easing as well. If that happened, our Economy would be even better, and the World Economy would be greatly and quickly enhanced-good for everyone!

https://twitter.com/realDonaldTrump/status/1163472273388576768

Here's another one:


Our problem is a Federal Reserve that is too proud to admit their mistake of acting too fast and tightening too much (and that I was right!). They must Cut Rates bigger and faster, and stop their ridiculous quantitative tightening NOW. Yield curve is at too wide a margin, and no inflation!

https://twitter.com/realDonaldTrump/status/1159083361803149312

And another...


With substantial Fed Cuts (there is no inflation) and no quantitative tightening, the dollar will make it possible for our companies to win against any competition. We have the greatest companies...

https://twitter.com/realDonaldTrump/status/1159473911748317189

And another......


China is adding great stimulus to its economy while at the same time keeping interest rates low. Our Federal Reserve has incessantly lifted interest rates, even though inflation is very low, and instituted a very big dose of quantitative tightening. We have the potential to go up like a rocket if we did some lowering of rates, like one point, and some quantitative easing.

https://twitter.com/realDonaldTrump/status/1123285120864092162

So, the question is, does Trump understand that the economy is a giant debt-and-inflation fueled bubble, and he just wants to keep it going so that he can keep bragging about it? Or does Trump actually believe that endless money printing is the path to prosperity? Dishonest or stupid? I leave resolution of this mystery to our resident Trump enthusiasts.

[afwjam]

Pretty sure they all believe in endless money, don’t think Trump is particularly remarkable in this regard.

[r3volution 3.0]

Pretty sure they all believe in endless money, don’t think Trump is particularly remarkable in this regard.

Exactly

[Zippyjuan]

When Obama was president he complained that rates were too low. That Yellen was keeping them low to make Obama look good and so he could go out and play golf. The economy was a "fake economy". Now he wants low rates to make the president look good and he can go out and play more golf. More flip flopping. Trump sees the stock market somehow reflecting his own success as President.

[UWDude]

Everybody here said QE would make the dollar worthless, and silver and gold to skyrocket.
It sounded right in theory.
That was 10 years ago.

I bought lots of silver.
But stopped believing after 4 years of QE and no real movement.
I then sold my silver.

[r3volution 3.0]

Everybody here said QE would make the dollar worthless, and silver and gold to skyrocket.
It sounded right in theory.
That was 10 years ago.

I bought lots of silver.
But stopped believing after 4 years of QE and no real movement.
I then sold my silver.

These economic policies, if not reversed, will eventually result in the destruction of the capital stock and quite literally the end of civilization.

How the market might move in the interim is anyone's guess (what will the Fed buy?), but also rather beside the point.

[brushfire]

When Obama was president he complained that rates were too low. That Yellen was keeping them low to make Obama look good and so he could go out and play golf. The economy was a "fake economy". Now he wants low rates to make the president look good and he can go out and play more golf. More flip flopping. Trump sees the stock market somehow reflecting his own success as President.


Hmmm... Its as though this trump character is some sort of flip-flopper...

[Zippyjuan]

Everybody here said QE would make the dollar worthless, and silver and gold to skyrocket.
It sounded right in theory.
That was 10 years ago.

I bought lots of silver.
But stopped believing after 4 years of QE and no real movement.
I then sold my silver.

Metals tend to move opposite of the economy. Economy declining- metals rising.

[Swordsmyth]

The more he pushes the less likely the Fed is to cooperate.

He knows that.

[r3volution 3.0]

No Trumpsplanation?

https://media1.giphy.com/media/11R5KYi6ZdP8Z2/source.gif


O, wait, I spoke too soon:


The more he pushes the less likely the Fed is to cooperate.

He knows that.

[invisible]

How many people here are surprised to see trump continuing even more of obomba's policies?

[Origanalist]

The more he pushes the less likely the Fed is to cooperate.

He knows that.

Trust the plan.

[devil21]

At this rate, we'll be buying empty boxes at the grocery store for $3.99 and Trump will still be claiming "no inflation".

Donald is scripted to pick a fight with the Fed and it's going swimmingly. It'll continue to intensify.

http://www.ronpaulforums.com/showthread.php?470248-Interesting-appeals-court-ruling-in-Canada-debt-based-money-is-done

[brushfire]

No Trumpsplanation?



HAHA, so funny. "Trumpsplaining"

[TheCount]

The more he pushes the less likely the Fed is to cooperate.

He knows that.

Isn't that what you said before they lowered rates? That he was preventing them from lowering the rates by asking them to lower the rates?

:confused:

[Krugminator2]

Don’t look now, but monetary policy is tightening dramatically (https://www.themoneyillusion.com/dont-look-now-but-monetary-policy-is-tightening-dramatically/)


"While most of the economics profession seems to assume that a Fed cut in interest rates means money is getting easier, policy has dramatically tightened in recent weeks.
Perhaps the most startling data point is the expected level of interest rates in the fed funds futures market (https://www.cmegroup.com/trading/interest-rates/stir/30-day-federal-fund.html), which has plunged to barely over 1% in 2021. Consider that figure to be a prediction that NGDP growth in 2021 will be weak enough to justify such a low policy rate. Sorry, no more “one and done”."

Sometimes Trump gets it right (at least the policy part, though for the wrong reasons)

[Swordsmyth]

Isn't that what you said before they lowered rates? That he was preventing them from lowering the rates by asking them to lower the rates?

:confused:
They only lowered them a little and said they weren't going to lower them any more.
They might have lowered them a lot.

[invisible]

This must be how trump is going to end the federal reserve.

[Snowball]

he's crying because the stock market is staying still.

and everyone knows it.

but it's going to get a lot worse because he has made too many enemies.

Even Wall Street will abandon him.

[TheCount]

They only lowered them a little and said they weren't going to lower them any more.
They might have lowered them a lot.

You can justify literally anything with this logic.

[r3volution 3.0]

Now Trump's admiring Germany's negative yield bonds:


So Germany is paying Zero interest and is actually being paid to borrow money, while the U.S., a far stronger and more important credit, is paying interest and just stopped (I hope!) Quantitative Tightening. Strongest Dollar in History, very tough on exports. No Inflation!.........WHERE IS THE FEDERAL RESERVE?

https://twitter.com/realDonaldTrump/status/1164174364213952512

[CCTelander]

You can justify literally anything with this logic.


And he does.

[Zippyjuan]

When Trump was running for office, he was critical of low interest rates by Janet Yellen and the Fed- complaining that the Fed was doing it to make the president look good. Now he wants low interest rates to make the president look good. He is disappointed that his own Fed appointees are not doing what he wants.

https://mises.org/power-market/it-turns-out-trump-loves-low-interest-rates-and-fed-stimulus-after-all


So far, I’m not even a little bit happy with my selection of [Fed Chairman] Jay [Powell]. Not even a little bit. And I’m not blaming anybody, but I’m just telling you I think that the Fed is way off-base with what they’re doing.

[Swordsmyth]

This must be how trump is going to end the federal reserve.
Yes.

He is setting them up for the blame if the economy falls apart.

[Zippyjuan]

Yes.

He is setting them up for the blame if the economy falls apart.

The public is smarter than that. But Trump does need to blame somebody. Nothing is ever his fault.

[Swordsmyth]

The public is smarter than that. But Trump does need to blame somebody. Nothing is ever his fault.
The public is stupid but that doesn't matter because the Fed IS responsible.

[Zippyjuan]

The public is stupid but that doesn't matter because the Fed IS responsible.

Trump is already saying the trade war (the real cause of global economic slowing) isn't his. But he is the "chosen one" to fight it.

[Swordsmyth]

Trump is already saying the trade war (the real cause of global economic slowing) isn't his. But he is the "chosen one" to fight it.
He's right, China started it and Americans chose him to fight back.

[Zippyjuan]

Some analysts now say Trump doesn't want a trade deal with China- that he deliberately is setting requirements for one he knows they cannot possibly agree to. Why? He wants to completely decouple the US from China. He doesn't want any trade at all with them. He won't say so until at least after the election- should it cost him votes. Then he won't be worried about any re-election. Shouldn't it be up to businesses and not the government deciding that?

[Danke]

Some analysts now say Trump doesn't want a trade deal with China- that he deliberately is setting requirements for one he knows they cannot possibly agree to. Why? He wants to completely decouple the US from China. He doesn't want any trade at all with them. He won't say so until at least after the election- should it cost him votes. Then he won't be worried about any re-election. Shouldn't it be up to businesses and not the government deciding that?

6990

[Swordsmyth]

Some analysts now say Trump doesn't want a trade deal with China- that he deliberately is setting requirements for one he knows they cannot possibly agree to. Why? He wants to completely decouple the US from China. He doesn't want any trade at all with them. He won't say so until at least after the election- should it cost him votes. Then he won't be worried about any re-election. Shouldn't it be up to businesses and not the government deciding that?
The government should protect us from our enemies and that means stopping China from waging trade warfare against us one way or another.
China isn't just our enemy on trade either.

[Zippyjuan]

The government should protect us from our enemies and that means stopping China from waging trade warfare against us one way or another.
China isn't just our enemy on trade either.

Is there anybody NOT an enemy of yours? Countries we trade with are enemies. People who may like to come to the US are enemies. Liberals are enemies.

[Swordsmyth]

Is there anybody NOT an enemy of yours? Countries we trade with are enemies. People who may like to come to the US are enemies. Liberals are enemies.
Lots of people aren't enemies.
People who don't try to take my liberty aren't enemies.
China is an enemy.

[CaptainAmerica]

His latest tweet on the subject:



https://twitter.com/realDonaldTrump/status/1163472273388576768

Here's another one:



https://twitter.com/realDonaldTrump/status/1159083361803149312

And another...



https://twitter.com/realDonaldTrump/status/1159473911748317189

And another......



https://twitter.com/realDonaldTrump/status/1123285120864092162

So, the question is, does Trump understand that the economy is a giant debt-and-inflation fueled bubble, and he just wants to keep it going so that he can keep bragging about it? Or does Trump actually believe that endless money printing is the path to prosperity? Dishonest or stupid? I leave resolution of this mystery to our resident Trump enthusiasts.

He has classified information, that the public does not have, but if I was to make a guess, he is playing a Cold War game with China pre-emptively using the economic ups and downs of the world currency, and trade agreements for leverage . I don't think he is that naive, although he is prideful, if you do think about it....regardless of whether the USA collapses with a currency, China is growing in power....would you rather eliminate or reduce their threat before dealing with your currency issues?

[TheCount]

Lots of people aren't enemies.
People who don't try to take my liberty aren't enemies.
China is an enemy.

You wish that the US was a fascist dictatorship.

There's no one else in the world more intent on taking your rights away than you yourself.

[Swordsmyth]

You wish that the US was a fascist dictatorship.

There's no one else in the world more intent on taking your rights away than you yourself.
LOL

Projection.

[invisible]

Funny how the shylls support trump continuing obomba's monetary policies by attempting to distract from the issue

[devil21]

Some analysts now say Trump doesn't want a trade deal with China- that he deliberately is setting requirements for one he knows they cannot possibly agree to. Why? He wants to completely decouple the US from China. He doesn't want any trade at all with them. He won't say so until at least after the election- should it cost him votes. Then he won't be worried about any re-election. Shouldn't it be up to businesses and not the government deciding that?

No, not decouple, just provide a cover story for why Chinese imports become more rare and more expensive, along with imports from the rest of the world, as the rest of the world stops accepting the Fed's printed up debt notes. When the "jobs" that do come back are actually positions in Foxconn-type manufacturing facilities in Chinese-style "economic zones" under Chinese ownership and Chinese social control, we'll then see just how NOT decoupled with China we are.

[Swordsmyth]

No, not decouple, just provide a cover story for why Chinese imports become more rare and more expensive, along with imports from the rest of the world, as the rest of the world stops accepting the Fed's printed up debt notes. When the "jobs" that do come back are actually positions in Foxconn-type manufacturing facilities in Chinese-style "economic zones" under Chinese ownership and Chinese social control, we'll then see just how NOT decoupled with China we are.
China is DESPERATE for dollars:


The dirty little secret is that China is running a massive US dollar shortage both on a corporate and a national level.
All told, Chinese companies have roughly $2 trillion US dollar-denominated in debt owed to international investors.
Because this debt is denominated in US dollars, this means the companies need to pay both the principal AND the interest payments to their lenders in US dollars.
However, China cannot print US dollars. Which means these firms either need to sell assets for US dollars or go bust.


That process has already begun on a corporate level.
Unbeknownst to most investors, China had its first major bank failure in 20 years earlier this year. On top of this, as of mid-July, Chinese firms have defaulted on nearly $5 billion in debt this year, which exceeds the previous FULL YEAR record set in 2016.
At some point this situation will come to a head. When it does, China will forced to sell its FX reserves (some $3 trillion) to get access to US dollars to help prop up systemically important firms.
This is what the stock market has been seeing for the last 12 months. It's why stocks are struggling to hit new highs, despite the Fed cutting rates for the first time since 2008.
https://zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com/s3fs-public/inline-images/GPC82219.png
THAT is the ultimate End Game here. The second largest economy, China, in the world is on the verge of massive devaluation.

More at: https://www.zerohedge.com/news/2019-08-23/are-stocks-discounting-massive-china-devaluation