Move over David Ricardo there’s a new Economic Wiz on the block.
No room for you J M Keynes or for you Adam Smith?
Donald Trump is the new economic saviour to the US.
Like him? Love him? Oh sorry, you’re not so impressed with him? – well mark my words, Donald Trump and his unique Trumponomics will be remembered by history as the President with the Midas Touch!
Now please do not misunderstand me, Trump will be remembered for his unique style of Trumponomics, the President who “saved” the US economy and made America Great Again. I’m not making any value or political judgement about any of his social stances or impact of his legislation to citizens at a grassroots level or to community projects. That debate, I will leave for others to make……
We understand the cycle and the importance of its timing. Trump’s economic timing is impeccable! Just like former Victorian Premier Jeff Kennett’s 1992 cycle low election, Donald has been elected right in the sweet spot to create a hugely positive economic impact.
Ah yes, remember those days? Kennett, the Premier we loved to hate. The social mischief he created while redefining Victoria as an economic power house.
At the bottom of the cycle, think circa 1992 or 2009, it is often hard to imagine just how the drivers of the cycle will be able to kick into action again. With such doom and gloom and the economy in neutral, unable to move forward.
But we know that while the drivers remain unchanged, they will find new life and emerge from the economic winter. They will look and impact differently from the last cycle, as no two cycles can ever be identical due to investor memory, legislative changes and the financial products being offered.
President Trump, has clearly set a pro-business agenda – let’s face it you have one of the largest real-estate developers in the US now in charge of directing the US economy – so it should come as no surprise to anyone that he has signed a presidential order directing Treasury and other regulatory agencies to report on what can be done to eliminate the “overarching” aspects of the Dodd-Frank Wall Street Reform Act which will be prohibiting banks from making speculative investments, (God forbid that were to happen?!) and the Consumer Protection Act which contains requirements for financial advisors to act in the “best interests” of their clients? Who would have ever thought……
“During the campaign President Trump said he would be tough on Wall Street,” said Sen. Bob Casey, D-Pa. “Then he filled his administration with billionaires and bankers and now he’s trying to roll back the rules put in place to prevent another economic crash like the one that occurred in 2008.”
Now whether anything is done about these pieces of legislation is not nearly as important as the attitude being shown by Donald to not only guarantee that the cycle is perpetuated, but ensuring a massive boom via unfettered credit creation and immense speculation.
Remember, two terms for President Trump (if he lasts that long) will ensure he will hand over a toxic economy, riddled with debt, to some patsy to take the economic fall.