President Donald Trump’s one shining moment during his time in office was the economy. With that crashing and burning, his reelection chances are also going up in flames.
Trump has a last-ditch effort, however. He and the Federal Reserve chairman may even agree on something: tax cuts. But to make any effect on his reelection, he’d have to do this swiftly and noticeably: not like last time. And the tax cuts would be paid for with “helicopter money.”
Veteran Wall Street strategist Ed Yardeni of Yardeni Research has also proposed this a very controversial option. “Former Fed chair Ben Bernanke many years ago suggested that if things really get bad, there’s always helicopter money,” Yardeni said on Thursday on Yahoo Finance’s The Final Round on Thursday. “Helicopter money would be actually something that both [president] Trump and [Fed chairman] Powell… could agree on. Because the president wants tax cuts. And if the tax cuts are paid for with ultra-easy monetary policy, guess what? That’s helicopter money.”
Trump needs major tax cuts, however. These should be so deep that almost everyone immediately feels relief from their tax burden. Anything less will be as well-received as his last round of tax cuts that were said to only help the rich by his opponents. Deep middle-class tax cuts could have a bigger effect on the economy than any amount of promises and money-printing schemes could ever hope. People will notice there’s more money in their wallets.
If Impeachment Fails, Will The Elite Crash The Economy In Order To Prevent Four More Years Of Trump?
“Helicopter money” was first coined by economist Milton Friedman in 1969 as a thought experiment where a helicopter drops cash over a community. In theory, people may assume it’s just a one-off event, and they may find themselves just spending it. Economic activity would spike suddenly. –Yahoo
Former Fed chair Bernanke later referenced this concept in a 2002 speech. Then a Fed governor, Bernanke (a Keynesian economist) discussed using an ultra-loose monetary policy (via money printing) to finance stimulative fiscal policy, which could come in the forms of tax cuts or government spending. From his speech:
A broad-based tax cut, for example, accommodated by a program of open-market purchases to alleviate any tendency for interest rates to increase, would almost certainly be an effective stimulant to consumption and hence to prices. Even if households decided not to increase consumption but instead re-balanced their portfolios by using their extra cash to acquire real and financial assets, the resulting increase in asset values would lower the cost of capital and improve the balance sheet positions of potential borrowers. A money-financed tax cut is essentially equivalent to Milton Friedman’s famous “helicopter drop” of money. –Ben Bernanke, 2002
But too little of a tax cut could be a huge problem. If Trump doesn’t make this tax cut one for history, people won’t notice and all they will focus on is the falling stock market. Yardeni says this is such a crisis because the central banks cannot do anything about a global health crisis, such as an outbreak or pandemic.
“I’ve been keeping a diary of the selloffs in this bull market, and there’ve been seven corrections, including this one,” Yardeni said to Yahoo Finance. “Altogether, I’ve counted what I called 66 panic attacks. This one really is the worst of them, because in the past, we can always count on monetary policy to save the day.”
“This one, it’s very obvious that there’s nothing central bankers can do about the global health care crisis,” he added.
Trump has often taken credit for the economy, tying it to himself. Because of this, he’ll also take the blame when/if it crashes (which it’s been doing.) A suggestion for Trump: stop pushing for lower interest rates. They are low enough. Cut taxes. Cut them deeply and cut them swiftly. Make sure as many people as possible feel that financial relief and then there’s a chance a reelection still and the economy may recover.
Milton Freidman’s book Capitalism and Freedom: Fortieth Anniversary Edition, explains how economic freedom (lower taxation, fewer regulations, etc.) translates into general freedom. How can we benefit from the promise of government while avoiding the threat it poses to individual freedom? In this classic book, Milton Friedman provides the definitive statement of his immensely influential economic philosophy—one in which competitive capitalism serves as both a device for achieving economic freedom and a necessary condition for political freedom. The result is an accessible text that has sold well over half a million copies in English, has been translated into eighteen languages, and shows every sign of becoming more and more influential as time goes on.
Trump won’t be blamed for an economic crash as this is a Black Swan worldwide event. As a second note the majority of the US public for right or wrong sees Trump as tough and decisive and his curtailment of illegal immigration is vindicated. All of this actually enhances Trumps reelection. Biden can’t form too many coherent sentences and ones that he does form are touting the wrong issues or the wrong side of an issue. Trump is a shoe in unless he gets us involved in a war.
The problem is solved simply. Flooding a tanker in the strait by appointing the guilty Iran. Oil transit will stop and US shale oil will be in demand.
I totally agree Kevin. The Wuhan Virus is a bio-weapon that escaped the P-4 lab, wreaking havoc on the world. It may have not been completely weaponized because it is most virulent against East Asian DNA and not White European DNA. It is the unfinished product of a published CCCP plan to depopulate the USA and assimilate US. It backfired.
China should be held financially liable for its negligence that has culminated in the death of thousands of people globally and its assets seized.
Economically speaking it was a good thing dropping the markets and suppressing economic activity. By the time November rolls around the economy will be rebounding and Trump will be reelected. 🙂
Does anyone really think that Sleepy Joe or Crazy Bernie could do a better job with the Corvid-Economy?
It’s WW-V boy n girls
So watch out fur dem hogs !!!!
Not here or on other conservative sites, but the liberals have been very good at selling the corona virus and economic panic is all Trump’s fault to the left and even many in the middle, those independents that actually elect the President. The real danger is not MSNBC, CNN or the HuffPo. The real danger is those CBS, NBC, and ABC, because they pretend to be neutral, but are not.
I watch 60 minutes this Sunday and Leslie Stahl interviewed a woman who is supposed to be the world’s foremost authority on Trump. The woman defended Trump, and said Trump understood Putin better than any other politician. Stahl spent the entire interview asking leading questions to try to get the woman to say something bad about Trump, which she never did. It was disgusting and pathetic.
I am sorry, the woman is the world’s foremost authority on PUTIN, not Trump.
The quick fixes propsed by Trump do not address the underlyng problems of this economy which are numerous! These half assed proposals only kick the can farther down the road and cannot qualify for being solutions by anyone with even the slightest understanding of the economy, the business sector, and the government sector. I have to drink my tea now. I could write thousands of words on this and only just begin to address the real problems that are plaguing the economy, the business sector, the government sector, and the private citizens-many of whom have fallen victim to the previously mentioned three.
Actually, it would only roll the snowball farther down the mountain, because the problem just gets bigger without addressing the underlying issues.
Ronald Reagan once famously quipped that “Latinos are Republicans. They just don’t know it yet.”
I think that savages will gladly comply with all the entry / exit VISA requirements, under the conservative banner, so replace white refuseniks, disgusted with voting. H1b’s were coddled in the SOTU, so voiced their support, over Twitter, in-kind. (Young blood.)
Boomers under whichever party are *mainly laundering imf subsidies, if not national resources, while faking fiscal and cultural conservatism.
Your actual children —
Bolshevist, state actors, and think that they’re folksy.
— Where does (it) come from. (Anything. Fill in the blank.)
— Where is it going.
If I have to compete with you, for attention, in the overcrowded lifeboat… sorry… it’s an adversarial situation.
I voted for this Orange Tweeter in 2016 and I can flatly state that, based on what he promised to do in 2016 – he has been a major disappointment.
But, Mac Slavo expects the visitors to this website to actually believe that a decrepit old geezer who clearly suffers from obvious signs of Alzheimer’s Disease and who can’t open his mouth without putting his foot into it – is going to bust the Orange Tweeter’s fanny out of the White House in November?
Every single prominent politician in the Democrat Party is on the record as being for totally open borders. Most of them have promised to abolish ICE and to tear down what little fencing now exists along the Southern border. Biden has declared that he wants to give amnesty to every illegal criminal alien and also give them “free” health care at the expense of the US taxpayers, most of whom are struggling to afford their own health insurance premiums. Add to this open borders insanity – the coronavirus pandemic and you have a recipe for both economic collapse even worse than is currently being predicted – and also the potential deaths of hundreds of thousands inside the USA. Oh, and as we have seen already from the past – every amnesty that is granted results in a stampede of millions more third world parasites across our border.
Does the Orange Tweeter deserve to be reelected? Based on his refusal to keep most of his 2016 promises, I’d say heck no. But, when the only other alternative is Mr. Dementia – I can not believe that the majority of the American electorate will not hold their nose and give the Orange Man another 4 years.
No matter how bad the economy might be by November.
Umfortunately, the evidence is mounting that the president and congress are nothing but robotic versions of stuffed suits that just sign anything into law on command. The evidence is clear that none of these individuals are even in control of themselves, let alone anyone else. The deep-state, corporations, and Israel are controlling America, in a silent and invisable colorless coup. It is not a revolution. It is a counter-revolution!
That’s Dr. Dementia. Creepy Joe now claims he has been a Professor. LMAO !!! 🙂
Crazy uncle Joe was picked to run against the orange man. These new polling machines must be much easier to rig than the old ones…unless you really believe he actually won these primaries?
He will have all the questions and answers if he debates Trump. He has been ordered to stick to reading the teleprompter when speaking. The orange man will make a fool of him should he agree to debate him.
You Must. Vote. Harder. Next. Time. HaHaHaHaHa
Trump’s long list of war crimes are also hurting his re-election chances. The ICC is proceeding with war crimes against Afghanistan… for starters.
The ICC does not sue nations. It sues individuals responsible for war crimes.
I will save them some work, just indict every politician, State Department, Pentagon official, and deep state employee in America. They are all guilty. That is the bleak reality of a nation gone rogue that has lost all sense of accountability and decency.
All of them means all of them!
Take massive doses of vitamin C, and large doses of ginger, D3, turmeric, and garlic. Heavy on the garlic My Peeps !!! 🙂
It remains to be seen, Trump won in 2016 because Hillary was a weak candidate, Joe Biden, should he win the nomination, is even more pathetic.