nobody knows and for the braindead who still support him, it doesn't matter anyway if anything he says makes sense they are *in love* with a phantasy that will never materialize, because it cannot (and if stinky was a true martyr - he would be dead by now ...)
Markets rotating into staples, healthcare, utilities, real estate, and energy. Largest NASDAQ drop in years. Ohhhhhhh.....This Trump inflation.
And tariffs of course reduce competition when the tariffs are placed on imported goods that are also produced in the United states. That's why tariffs are pro-capitalist but anti-capitalism.
Such a sweeping statement is of course not true, but not surprising either when one considers how ignorant the general population is regarding the source and control of our money... All deficits are covered first by money printing, and then the new money created and spent into the private sector economy returns to the government when it is converted, to the penny, to Treasury bonds. Later the Fed will use open market operations, via the secondary bond market, to Buy, or Sell, Bonds as it deems necessary to implement its monetary policy. When the Fed Buys interest paying money in the form of bonds (which are not a part of the money supply) the private sector sees this as an increase in bank reserves; hence as an increase in the money supply. On the other hand, when the Fed Sells bonds, bank reserves (which are part of the money supply) are converted to bonds. The net of these events, beginning with printing of new money and ending with the new money's removal from the money supply when it is converted to bonds, does not cause inflation. Bonds do however represent potential for future inflation to the extent that the aggregate deficit grows faster than aggregate economic growth. Most inflation nowadays is caused by externalities having to do with supply and demand of goods and services as we experienced in the wake of the recent Covid Pandemic.. Since the largest component, by far, of the money supply is credit, the Fed has only weak secondary control of the money supply via interest rates which only significantly affect the demand for credit at the margins. Congress has by far the most powerful tools affecting the money supply, but seldom exercises them, because were they to, the result would be unpopular. Is it surprising therefore that the necessary is often put off until there is a crisis? Incidentally, it is Congress, via its setting of the level of taxation and spending, that determines the size of the deficit. Hence it is Congress that prints new money; not the Fed, which only prints new money in a trivial sense! Contrary to popular belief, the Fed has no say in the amount to be printed. The Fed is Congress's agent just as your home computer's printer is your agent. The Fed does, however, determine what form a minor part of our private sector money shall take, i.e., shall it be in the form of interest-paying* bank reserves or in the form of interest-paying bonds. The Fed adjusts the ratio of reserves to bonds via open market operations according to its monetary policy. __________________ *Previously the Fed did not pay interest on reserves. The Powell Fed joined other Central Banks (Canada, Australia, etc.) in the simpler way they controlled the Central Bank funds rate. This occurred in recognition that it was not necessary to dictate a specific reserve requirement.
The Fed isn't the only Central Bank to buy and sell US Treasury Bonds. There will be demand for dollars and US Bonds for both storing wealth and transacting in if it's backed by the worlds strongest, most technologically advanced, and respected military in the world.
In Trump's first 3 years as Pres., he added a trillion a year to the national debt, 20% less than Obama, whose average per year was 1.25 trillion a year during his 8 years. Had it not been for covid, there's no obvious reason or need for Trump to spend more than he did his first 3 years, the economy was stable both domestically and globally. In 13 months, from June 9, 2023, to July 12, 2024, Biden has added 3.1 Trillion to the national debt. The headline statement does not hold water or credibility. Democratic presidents historically enjoy a better stock market, but it not for the right reasons. It's because of the massive government spending they engage in.
I am looking forward to the economy and markets during the next Trump cycle. Its time to change it up from the same few megacap stocks.
Soooooooooo .... T(ch)rump gets a pass for Covid but Biden, who managed it way better wear a mask don't gargle with bleach etc, doesn't? Biden gave out $1400 in stimmie. Trump $1800 but he wanted to (Mitch McConnell didn't let him, which might of cost him the election) add the $1400 Biden got thru Congress once he got into office. Always remember Trump luuuuuuuuuuuuuuvs debt. Always has, always will. He is completely about what he can gain. He has repeatedly said in interviews throughout his life - in negotiates there can only be one winner, both sides can't win. He wants himself to be "great" again, not the country.