No one was shocked by the FEDs recent decision to raise interest rates to .5-.75%. The FED has raised interest rates a total sum of .5% in 10 years! That’s not much of a move but the markets think the FED is being very hawkish right now with the dollar hitting a 14 year high! During the campaign, Trump stressed to people how he will make America great again but really it’s an impossibility. The only way for things to turn around is if the government shrinks and the free market is allowed to prevail! Trumps natural instincts is to fix things with government. The markets wishful thinking in regards to a Trump presidency are vastly overblown and will crash back to reality rather soon.
Donald Trump agreeing to a deal with Carrier to keep jobs in the U.S. is the crony capitalist system we have today. This is how business in America is done today and why we are very far away from any kind of free market system! Granting special deals and privilege to government favored businesses is the government picking winners and losers! The government protecting businesses from competition makes them actually less competitive and less responsible to the consumer. So we, as taxpayers, are soaked in more than one way! Many people out there are optimistic of a Trump Presidency but this Carrier deal shows it’s more of the same.
Just after Thanksgiving, Fidel Castro died at 90 years old. Fidel first came to power in Cuba in 1959 and ruled there for over 50 years! People on the left love to praise Cuba and they loved the heck out of Fidel! But what is really the truth? Did Fidel really improve the lives of the Cuban people or did he make life much worse? What is life like today for the Cuban people? Cuba really is a good example that communism doesn’t work and socialism/communism is anything but compassionate! Capitalism and the Free Market are the best ways to help the poor and with examples like Cuba, Venezuela and North Korea, it’s amazing people like Bernie Sanders still get the support they do get.
Many people are fearing deflation but is this really something to be feared? Not at all! If we had an unhampered, free market deflation would naturally occur in the economy! We would have slowly falling prices because we are more productive and at the same time, real wages are rising! Today, real wages are falling and the Federal Reserve is slowly eating away our purchasing power via inflation! The deflationary death spiral is a myth and can never happen. Only when government gets involved can a great depression like scenario occur.
Prior to Donald Trump being elected, it was said the markets would crash! The stock market is at record highs and the dollar is at a 14 year high! So does this mean our economy has recovered? No, what we are seeing now is short-lived and once Trump is sworn in as the 45th president of the United States, this optimism will have disappeared. The only way out of our excessive debt problem is inflation. They will paper over these debts. QE4 is coming my friends so prepare yourself!