Wednesday, November 13, 2019

When Will The Trump Bubble Burst?

With impeachment now a foregone conclusion, the trade war still ongoing and damaging the economy, and Trump generally making a mess of things, people are wondering, when will the stock market bubble finally burst?  Like a dog on a leash, it eventually has to snap back to reality sometime.  All the corporate stock buybacks in the world or FERAL Reserve machinations will not be able to postpone it forever.  As history has shown, what goes up, must come down.  And the bigger they are, the harder they fall.

The massive federal "deficit" spending (which to be honest, is really a non-problem for a Monetarily Sovereign government like ours) from 2018 onwards is of course fueling the economy right now in spite of Trump's general wrecking-ball economic and non-economic policies.  More federal "deficit" spending = more money supply = more growth dollars = more economic growth, as a general rule.  But eventually even that will not be enough to stop the damage being done by Trump's recklessness, especially since so much of that new money creation is going to the where in least needs to go (into the hands of the rich and mega-corporations, Wall Street instead of Main Street.  Especially if the Republicans decide to actually start cutting Social Security, Medicare, Medicaid, and other vital programs while cynically using the "deficit" hysteria as a cudgel.  Yes, they will actually have the chutzpah to try that at some point.

You can really only do so much damage before papering over it no longer works anymore.

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