Obstacles to Trump’s ‘Growth’ Plans
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Theodor Horydczak “Dome of US Capitol through trees at night” 1943 For the second time in a few weeks (see ‘End of Growth’ Sparks Wide Disconte
[See the full post at: Obstacles to Trump’s ‘Growth’ Plans]Trump has no plans for huge infrastructure spending. The plan such as it is are public/private ‘partnerships’ which will amount to give aways of government land and assets combined with massive tax give aways.
There is no there there on the fiscal expansion. It is going to be all tax breaks, on top of other tax breaks. More deficit. That’s it. It is all rather hilarious how everyone in the alt econ world is all hot and bothered over this grand economic stimulus plan which doesn’t exist.
Every time that I zoom into a location on google earth I discover the existence of human occupation that have nothing to do with “our growth”, “our success”, “our failures”‘, and “our concerns/worries”
Sorry to be difficult, but here’s another article that doesn’t mention private debt. No one ever seems to address the question of whether total debt can perpetually rise faster than total income. There are many that fervently believe all good things will come once total debt is reduced, but I think there’s ample evidence that such a nirvana will not happen.
For me, how are governments going to satisfy the desire for more cars and bigger houses without more total debt? I say they won’t. The choice is between a continuation of the trend of gains in debt exceeding gains in income or a much simpler society. It’s nothing more than that.
The debt is never going to be repaid because it can’t. It was never meant to be. The plan since 1970 was to abuse it as much as possible, then default and swap to a new system. So, no, debt can’t rise faster than income, but no one cares. It was always meant to fail. Trump is no exception to this rule, and we can all agrue about whether he can get better negotiating terms in the upcoming bankruptcy. But time is up.
Don’t be hasty: they handed him the economy wired to explode. We’ve got the largest bond dislocations in 30 years already and emerging markets hammered. Since bonds are 10x larger than stocks, money fleeing bonds could drive stocks to dizzying heights. Add that they won’t rush into EM, China, or the EU, and you have a recipe for dizzying heights for US Stocks — but only the core DOW, S&P, as the economy here is dead.
But wait! That’s not all! With the US$ rising as the core currency, and China, India, being unsafe, with the EU about to Italeave, money should rush into any US assets, US$, driving it higher still. Sound great? It’s not! It’s called massive Deflation. The US$ rises and rises until the US cracks under the strain and defaults, or the world cracks under the strain and rejects the US$ as core currency.
So translation: you ain’t seen crazy yet.
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