Explosion of inflation under way - Are you ready Gary Cohn, Mnuchin and Ross?

1) Repeal of Dodd Frank
2) Import tax 20%
3) Tax cuts
4) Repatriation of overseas profits
5) Increase of infrastructure spending

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Result: Sell Treasury Bonds, buy stocks with huge overseas profits (Appple, Google, Facebook & Co), buy infrastructure sensitive stocks, buy US Dollar against all other currencies.

This will be bombastic!

We have a dream team on board:

Gary Cohn, Steven Mnuchin, Wilbur Ross = They will make America Great Again!

 

Inflation in an environment in which interest rates are rising. Interesting.

 

I'd rather buy commodities in this scenario...they are near lows...stocks near highs.

 

Remember the 70's...inflation and interest rates skyrocketing at the same time.

 

While I am not sure about America, the dream team has sure made Goldman great again...

Do you hear that "ka-ching" sound? That's the sound of the swamp being drained...

 

1) Repeal of Dodd Frank: Do not know what this will do

2) Import tax 20%: May 10% should be just fine on China. They have $3T cash reserves.

3) Tax cuts: not for top 10-20% group. that will not work, middle lower class need it.

4) Repatriation of overseas profits: please do so with momentum and diligence

5) Increase of infrastructure spending: pay for this by import tax and overseas profits. also by cutting government size, defense budget etc. do not print money and make the debt hole deeper.

Right away Trump should fire 10% of government employees. Then turn around and reduce by 10% "across the board" salary and benefits of the remaining. Possible another 5% might leave as a result. Then try to disburse their jobs onto remaining workers and NOT hire any replacements.

Mr. Trump "Half in Half" measures will not work and hurt US more both in the long and short run. Immigration ban is good but should cover more "bastard" nations like Pakistan, Saudi, Afghanistan. Once "advanced vetting of visa applicants" is in place, the procedure will or might help reduce the budgets of agencies like DHS, CIA etc. Even $1B savings a year on each department will be well worth it.

Btw, immigration ban does not violate anyone's right. It is only temporary till the time advanced vetting procedures are in place for some countries.

 

Oh yeah, the stagflation era which eventually lead to damn near 18% interest rates.

 

why would any company repatriate monies to the US
it would be a roach motel. (as in capital controls when the dollar sinks to oblivion.)

 

I was expecting mass inflation in 2008 when the banks failed, but they got rescued, infact since 2003 area but alas it's a tricky game, maybe this time though.

 

Wait... why buy stocks the likes of Apple/Google? Because they have huge overseas profits? Aren't they going to be forced to pay huge taxes on that, and thus bad for the stock? Surely Trump isn't going to let them keep it all un-taxed...?