Trump Comes Out Swinging
By: CAPTAINHOOK
GoldSeek.com
Monday, 13 February 2017
No ‘rope-a-dope’ for Donald Trump. He’s come out of the corner swinging. So far he has signed six controversial bills in only the first few days, and you can be sure more are to come. The only problem with fighters like this is they burn out fast however, where all too often they effectively punch themselves out in the early going. In this regard, it could be argued that’s what happened to him with his Atlantic City Casinos. One casino wasn’t enough for The Donald. Then they all got in trouble because of his huge ego – and needed a bailout.
The question then arises, ‘is the US of today going to turn out like his ‘new toy’ at the time – his Atlantic City casinos?’
Looks like a repeat here style wise, with the only question how long it lasts – his first 100 days? Trump is very cognizant of the fact the world is watching, looking for him to fall on his face, so you can bet he keep punching as hard as he can these first 100 days. The big question then, is what will things look like after those 100 days – does the economy appear like it’s on a sustainable path? And you could go further – does this path look self-generating, ‘organic’ if you will, which is the idea behind creating (bringing back) manufacturing jobs in America. In doing so, Trump is attempting to give the appearance he is a ‘true conservative’, and purveyor of Austrian economic principles.
There’s only one problem with all this, that being the debt – the rising debt – the debt that is already to high to ignore. This debt would need to be unwound before the US can return to the 50’s, which is not in the cards with the Fed still in charge of issuing its debt-based currency, and the Treasury Secretary still taking his orders from these people. What does this mean? It means that while Trump may create a few manufacturing jobs with all he is doing, but in order to do so, a great deal more debt-based money (debt) will need to be brought into the formula, which when added to the existing debt, and higher interest rates all this new spending will create, means his success will eventually backfire on him – and America – and the economy – and the stock market.
So I hope he’s enjoying his premature victory lap around the ring right now, because again, all he’s doing in the end is coming out of the corner too strong. And while there’s no telling how long it will take for him to punch himself out (a 100 days?), if the 1928 / 1929 analog is any indication, summer is quite possible. Gordon long put out an excellent article recently (see here) talking about why we are likely in a crack-up boom that has further to go, along with the deflationary collapse that will follow. As you would know if following my work for some time, this is also the page we are on, with the acceleration seen this year as well. So again, believe it or not, stocks can keep rising, where as per our best estimation (from last week), the S&P 500 (SPX) is likely on its way over 2400.
And please, don’t get confused about what is happening here, as it’s a ‘monetary matter’, and nothing more in the end. So good news or bad, whatever that means today, it won’t matter until the benefits of the money printing are outstripped by the resultant vulgarities, which includes speculation trends. So when somebody at JP Morgan comes out and warns on Trump’s policy initiatives, demographics, war threats (or realities), or whatever – remember none of such warnings will matter until central monetary authorities finish reacting to all this by literally blowing up the economy / markets with excessive money printing, which is picking up steam as we speak. This is why we will be looking a great deal more like Venezuela six months to a year from now than Iceland – of this you can be sure.
The Rest…HERE
