bonds economy helicopter money Trump

“7 Days Later”

Tuesday will mark "7 Days Later" for the US. No, we didn't a zombie apocalypse last week, but we did witness the next worst possible turn of events: Donald Trump became President elect in what one can pretty safely call the greatest (or "worst" depending on how you look at things) political coup in American history. Equity markets responded by staging their biggest rally since 2011 and the bond market puked to the tune of $1 trillion in what's being dubbed the great "reflation trade." In short, investors expect a Trump presidency to be accompanied by massive fiscal stimulus or, helicopter money, which is perversely appropriate consider Trump's penchant for arriving in style... It's not clear how receptive Congress will be to Trump's plans, but if the last 12 months have taught us anything it's that one shouldn't underestimate Americans' propensity to be stupid. Throw in the fact that central banks seem keen on stepping back from their role as masters of the post-crisis universe and you've got yourself a rather interesting setup. Here with a Sunday evening breakdown is Bloomberg's Daniel Kruger: Count this among the ways that Donald Trump’s election has rocked the financi
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2 comments on ““7 Days Later”

  1. Anonymous says:

    maybe the fiscal expansion, offset by the monetary tariffs on dumped goods, plus repatriated offshore profits which after all are paid in usd.. as this money could be used in various ways to reduce debt, thereby keeping rates low and allow for the corporate credit to buy the steel cement etc etc.necessary to get on with the job.. would allow for the reopening of steel mills to make the pipe for the pipelines, the pipeline stanchions, the steel in rigs, the drilling pipe, refitting our refineries to process our crude, rebar for the roads and bridges, and suggesting strongly to all co’s, doing the work that they hire 1 veteran and 1 coal miner who’s out of work on a 1 for 1 basis till there are no unemployed miners mines are closed, and no troops over there.. unemployment goes down and revenue goes up.. we don’t need the oil/gas, the chinese do.. let them deal.. few people dig holes better than miners and we have spent billions on training the kids in the service to run big machinery, welding etc.. i think it’s probably better to pay an ex gi $40+ p/h for work here than paying him peanuts to get his ass shot off.. because we have 150 to 250 yrs. of nat gas and oil under us.
    on a real basis we are nowhere near full employment.
    just an opinion..

  2. PierreJ says:

    Nice photo from “28 days later”.
    The monogram with the 3 interlaced croissants is that of Henri II of France (1519-1559). The king’s motto was “donec totum impleat orbem” which can be translated as: “until it fills the whole world”.
    Unfortunately, Trumpism and populism seem to be on the verge of “filling the whole world”.
    Best

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