If Trump is able to get back in the first thing he’s going to do is tell his Tsy/Fed to reduce interest rates substantially… just like Brandon told his Tsy/Fed to rapidly increase rates in unprecedented fashion…
"In the Biden economy, one third of Gen Z and millennials have no savings accounts and no savings whatsoever," Trump said during the Turning Point USA Action Conference in West Palm Beach, Florida. "They have nothing. Homeownership has been pushed out of reach for millions with the rate of 30-year mortgages up 177%."
It’s all political… it’s a waste of time to try to analyze Monetarism’s errors or whether or not price increases were “transitory”or blah blah blah… these politicians are just going to do what they think is most politically advantageous to them…
Trump will eventually add a specific interest rate reduction policy to his platform but at a later date closer to the election when he thinks it will be too late for Brandon to get in front of him on it..
Till then he and GOP will keep pounding Brandon on the Art degree figure of speech “inflation!” comparing current prices on items to those seen when Brandon took over in 2021… of which many are substantially higher… they will just talk about the prices that are remaining higher and say that is the figure of speech “inflation!”…
We’ll see how it goes…
Donald Trump addresses young voters' concerns about home ownership at TPUSA conference | Just The News https://t.co/rrqgyi7qey
— John Solomon (@jsolomonReports) July 16, 2023
5 comments:
Inflate back better - great slogan.
He may find it hard to do considering the fiefdom nature of American institution politics. Separation of powers and all that. It's not China after all.
If he does manage to rapidly decrease rates then USA may enter recession no? According to mosler the high interest rate is one of the reasons for the high deficit levels, ergo if you cut the rates you cut the deficit, assuming no increase in spending or change in balance of trade. (I know a lot of ifs).
“ According to mosler the high interest rate is one of the reasons for the high deficit levels,”
He also sez “if somebody saves then we can’t buy all of our output” so high deficits are accounting record of USD savings and high savings is bearish…
He was bearish for years under Trump market went up… MMT academics are all calling for recession right now due to higher rates market continues to rally GDP >2%.…
Mmt people are all EXTREMELY politically biased… EXTREMELY…
We are having high interest payments now and high deficits so that means non-govt are mostly saving the interest and not spending it.. interest income probably mostly going into ERISA accounts and being saved leaving the high deficits.. it will eventually be spent as the balances are withdrawn from the now fully funded ERISA accounts.,,
Trump represents credit user class … he is in leveraged CRE mostly… lower rates will help his constituent class… young people trying to buy a house to form new household now getting screwed,,, buy a car to drive to work.. etc,,
He will get his SECTREAS to do it directly or verbally abuse the Fed to slash rates to help finance a full Covid recovery…
“ According to mosler the high interest rate is one of the reasons for the high deficit levels,”
high deficits are not bullish… it means people are saving..,
Best economy outcome would be closer to a balanced budget… ie we would be buying all of our output..
Like in late 90s … again in 2007…
It's not rates. It's income.
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