Trump's Very Bad Week, Part II
Simon Rosenberg
Happy Saturday all. Last night the Democrats swooped in and helped a struggling GOP pass bills in the House and Senate to keep the government open through March. President Biden has just signed the measure and we will all be able to head off for the Holidays without worrying about what chaos Trump and Elon and MAGA may bring. For now, at least.
The bloom has come off the post-election Trumpian rose. The essential ugliness of his project that is often discounted or obscured in our daily discourse became the story this week. The warning signs about the chaos he will bring and the damage he will do to the country are now there for all to see and are impossible to ignore. Let’s review:
Trump is already unraveling the strong economy he is inheriting. Markets and our allies are not happy - As has been well covered by economists and journalists, Trump’s economic agenda of tariffs and mass deportations will raise prices, re-ignite inflation, slow economic growth and increase the deficit. This week the Fed and financial markets started coming to terms that the US government may, in a month, start implementing an agenda that unravels the current strong and stable US economy and undermines the broader global economy that has made the US and the world so prosperous in recent decades. Due to concerns about Trump’s inflationary agenda the Fed announced a more “hawkish” position and is scaling back its interest rate cut ambitions in 2025. Mortgage rates are already rising. The stock market indices lost ground in the past two weeks. All of a sudden the strong and stable US economy is looking a bit wobbly - due to fears of what Trump may do.
It is likely now that Trump’s agenda is already damaging the US economy even before he takes office will spur calls from other Republicans and US business leaders for Trump to scale back or curtail his inflationary plans. Trump’s economic honeymoon ended this week, as his dangerous plans started being taken seriously by the US government and the markets. It is my hope that President Biden writes the next President a letter in the coming days urging him to back off his reckless economic agenda and preserve and protect the remarkable economy he is inheriting. The warning signs are there for all of us to see.
https://www.hopiumchronicles.com/p/trumps-very-bad-week-part-ii
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