This article was originally published by Tyler Durden at ZeroHedge.
For months, President Trump has been pushing The Fed to cut interest rates, lambasting them for raising rates last year “slowing us down.”
Then, at the end of April (in the middle of the latest FOMC meeting), Trump took it one step further, demanding The Fed cut interest rates by 1 percentage point and to implement more money-printing quantitative easing. In a two-part tweet, the president unfavorably compared the Fed to its China counterpart and said if monetary policy in the U.S. was looser, the economy would “go up like a rocket.”
Democrats denounced Mr. Trump’s comments, saying they showed his disregard for the traditional independence of the Fed and his desire to use its powers to help him win re-election.
“There’s no question that President Trump is seeking to undermine the long-term stability of the economy and independence of the Federal Reserve to boost his own re-election prospects,” said Senator Ron Wyden of Oregon, the top Democrat on the Finance Committee.
And many elites piled on, slamming the President’s ‘shocking interference’.
BUT… things have changed very quickly among the establishment types.
Now we have Fed heads talking about “insurance” rate-cuts, lamenting the inverted yield curve, focusing on slow-flation; and former Treasury Secretary Larry Summers agrees with Trump, demanding a 50bps cut now and more in September.
Amid this massive flip-flop by the establishment, Gluskin Sheff’s David Rosenberg has deciphered a cunning plan emerging among all this global trade war tension and economic collapse:
“Maybe Trump is a genius, after all.
What if he finally gets the steep Fed rate cuts he has been demanding?
After that, he ends the trade wars, tariffs go to zero, and the stock market surges to new highs — just in time for the 2020 election!“
Maybe Trump is a genius, after all. What if he finally gets the steep Fed rate cuts he has been demanding? After that, he ends the trade wars, tariffs go to zero, and the stock market surges to new highs — just in time for the 2020 election!
— David Rosenberg (@EconguyRosie) June 5, 2019
Rosie’s right – the market is now demanding over 3 rate-cuts by the end of 2020 (and just less than two by the end of 2019), keeping the equity market dream alive…
Or will any rate-cut be the ‘sell the news’ event confirming The Fed must be worried about something? Trump’s 2020 run depends on it.
Probably, the president is right to call for rate cuts and more QE. It is the only way to keep this system going since the debt must grow or it all crashes. He knows this since at least his private screening of the Zapruder tapes. Before that, when Obama was top dog he was crying about the low rates. No more. Hope the Fed keeps the plates spinning until I die. Not looking forward to any Mad Max collapse. Unfortunately, probably not gonna happen.
Timeline of the mid-term future:
First: MMT rollout
Next: Widespread bankruptcies
Next: Energy shortages
Next: Mad Max ensues
Next: Global die-off
Last: Rise of the roaches
They say roaches are all protein.
Why should our government have to honor the “traditional independence ” of the Federal Reserve?
This “interference” in the private banking of a secretive shadow ruling elite could be the genius of Trump; and, explain why he brought them into the Whitehouse in the first place.
Wow! Trump coming through for the American people!
What do you think of those apples?
And the Democrats are not happy. Which can only be a good indicator.
Since it seems that practically everything that the Democrats are in favor of, is anti-American, and, in the direction of the Sovietization of the USA.
The USA is a corporation under recievership of the fed reserve. Bankrupted in 1933. ” The federal reserve, spreading death and debt since 1913″.
“Give a man a gun and he can rob a bank. Give a man a bank and he can rob the world”!
I don’t believe in the version of reality, in which big govt respects private enterprise, and free enterprise respects big govt, so the ppp (public private partnership) is unquestionable, from either perspective. That’s not a hybrid system; it’s two things that can’t logically exist in the same place and time.
Noone can put their finger on whether the fed res is formally a branch of the govt, or why we are so beholden to it, without nameable jurisdiction or leverage. That should automatically come across as a speech control, when you are not able to name something, or how it works, or what is your part in the bargain.
Trump hasn’t done nothing except extend the NWO term of Bush/Clinton/Bush/Soretora the Kenyan.
Swamp has gotten so big and deep, Trump is all talk – no action.
A melting orange farcicle.
Is there a single true conservative in the USA that will ever run for President? There hasn’t been one in over 100 years.
Elect me, and the first law will be no victim, no crime, no fine, no time. Close the odious debt loop hole, drain the swamp.
Better change your name first, we already have a clown as prez.
Most everyday Americans wouldn’t literally elect someone, who talks this way, as a matter of Stockholm Syndrome, and imagining that they are the ones with their finger on the button. You see just another pleb with his head on the chopping block, and imagine that you are on the same exact side as the executioner.