Debt Rattle November 17 2016
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NATO Prepares for Trump Presidency (Spiegel)
NATO has a $1B building? They should join up with the EU, I hear they have one of those.
“…member states agreed to a goal of spending 2% of their national GDP on defense. …Germany, the second-strongest economy in the alliance, next to the United States, spends only 1.19% of its GDP…”Greece is the only member paying the full 2%. Maybe they should be in charge of NATO and the EU? I’m sure they’d have quite a new perspective on the EU project.
The full text of that StarSlateCodex may be the best thing I’ve read all year. All the charts and quotes. On and on. I may have it published and distributed worldwide.
And keep in mind he is an ultratriggersupersafespacelifetime leftist. IKYN.
I have no real clue as to what Trump’s beef with Yellen is but I do know what it is going to be. It is going to be that the Fed is going to ‘raise interest rates’, probably in December. Never mind that the 10 year Treasury note closed today at 2.34% today, 30% higher than it was just before election day.
Actually I do have a clue what Trump’s beef with Yellen is. It is that she didn’t ‘raise rates’ in order to help Obama. Now however he is going to go nuclear when the Fed ‘raises rates’ when he is about to become president. I used the ironic quote marks around raising interest rates because the Fed does not set rates the market does. In any case if rates continue to rise then Trump is going to be the biggest fan of QE since Bernanke.
Everything Trump wants or thinks he wants is absolutely dependent upon abundant liquidity and ultra low interest rates and soon enough Trump is going to demand QE. Actually everything that everyone wants is contingent upon more QE. I expect $4TN during the next 4 years. Which will have to include the purchase of corporate debt.
My scenario, and my scenarios never pan out, is a significant selloff in the stock market soon, possibly after a December ‘rate increase’ by the Fed, which will ‘force’ the Feds hand in announcing more QE and then a stupendous rally.
As to those wanting change, what were you thinking when you thought Trump would deliver it? Of course the exact same thing would have happend under Clinton except for the brief period when some people actually thought the president elect wanted higher rates. Trump pretended to or sort of maybe thought he did, but won’t now. Inrmy minds eye I see massive rallies outside the Eccles building by Trump supporters demanding QE.
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