Trump and the federal reserve

[lamboguy]

http://www.zerohedge.com/news/2017-0...ederal-reserve

Trump is ultra sharp and loves to shake things up, i believe this article

[TexasDolly]

Originally Posted by lamboguy

http://www.zerohedge.com/news/2017-0...ederal-reserve

Trump is ultra sharp and loves to shake things up, i believe this article

Lambo, I read it and I don't understand it. Give us a little help here and describe what all that means.
Thank you,
TD

[lamboguy]

the way i read it is that Trump doesn't care if the US dollar is the reserve currency for the world. it looks like his master plan is depreciate the dollar so that he can pay the world back all that the United States owes and create less of a burden paying off all the interest payments that flow out of here every year. its interesting to say the least.

Trump has accused China of playing around with their currency, but the Chineese have been trying to bolster it. however money has constantly been leaving China for other things like company's, real estate and commodities throughout the world.

on the other hand it looks like the Euro is going to be toast soon and will not exist 5 years from now. people have to figure out how to maintain their assets so that they don't erode into thin air.

to be honest with you, i am not sure of anything i just said because unlike Bush and Obama, this guy is hard to figure. what i can tell you is that Trump has come up with some type of a master plan to run this place that not many have been able to figure out. i said this before, Trump is presiding over the worlds largest bankruptcy right in front of our eyes, and he has plenty of experience taking company's bankrupt in his life. he wound up smelling like a rose owning beautiful buildings and having his own boeing 757 to fly around in. there is no better man for this.

[Clocker]

Originally Posted by lamboguy

the way i read it is that Trump doesn't care if the US dollar is the reserve currency for the world. it looks like his master plan is depreciate the dollar so that he can pay the world back all that the United States owes and create less of a burden paying off all the interest payments that flow out of here every year. its interesting to say the least.

Trump is presiding over the worlds largest bankruptcy right in front of our eyes, and he has plenty of experience taking company's bankrupt in his life. he wound up smelling like a rose owning beautiful buildings and having his own boeing 757 to fly around in. there is no better man for this.

Early in the primaries, Trump talked about "renegotiating" the national debt. When it was pointed out that the US doesn't have the same bargaining power as a Trump property that can threaten bankruptcy if debtors refuse to renegotiate, Trump said that you can never default as long as you get to print the money.

As you say, he changes directions with the wind, but devaluation is one way of dealing with the debt that he has discussed in the past. And it would do great harm to the average American.

Trump has accused China of playing around with their currency, but the Chineese have been trying to bolster it. however money has constantly been leaving China for other things like company's, real estate and commodities throughout the world.

China has been trying to prop up its currency because investors have been pulling out. They have not been able to get good returns on their money as value of the currency was kept artificially low. Devaluing the dollar would have a similar impact on the US.

on the other hand it looks like the Euro is going to be toast soon and will not exist 5 years from now. people have to figure out how to maintain their assets so that they don't erode into thin air.

Americans will be faced with the same problem if Trump allows the dollar to be devalued. Savings will be wiped out and pensions hard to live on.

[TexasDolly]

Thanks Lambo. The Fed's actual motives have always troubled me and their continued effort to keep interest rates down is bad,in the long term, I would think. The low interest rates allowed the Gov. to finance all the social programs at a lower than realistic cost.
Entitlements have grown at a 9%/year clip while savings have declined at about the same rate for the last 50 years(both relative to GDP). Pure and simple, lower savings means less capital for investment.
I am still not clear about the IMF/SDR mumbo jumbo in the link.

[VigorsTheGrey]

"This is one of the main reasons why the media is in fact pushing this isolationist script. It prevents Americans from accurately deciphering the shift towards the multilateral. The opposition to the Federal Reserve and the establishment was built up through alternative media to the point where the masses are now clamoring for the changes which in fact were always required in order to make the multilateral transition."

Interesting side-note also on how Napoleon "conveniently escaped" from exile on the isle of Elba to wage war on Europe once again...

[chadk66]

I'd love for him to audit the fed.

[lamboguy]

Originally Posted by chadk66

I'd love for him to audit the fed.

either that or Ft. Knox and i have a touchdown

[barahona44]

[QUOTE=Clocker] Trump said that you can never default as long as you get to print the money.

While technically true, you end up debasing the currency.Is anybody lining up to lend Zimbabwe money?

[Clocker]

[QUOTE=barahona44]

Originally Posted by Clocker

Trump said that you can never default as long as you get to print the money.

While technically true, you end up debasing the currency.Is anybody lining up to lend Zimbabwe money?

That is the ultimate issue in the whole discussion, including the OP here. While it is not at all clear if Trump would really want to devalue the dollar, it is clear from his past statements that he has thought about it as one method of easing the debt problem and of making the US more competitive in international trade.

Oops, I said "Trump" there, I meant to say Bannon.

[pondman]

[QUOTE=Clocker]

Originally Posted by barahona44

That is the ultimate issue in the whole discussion, including the OP here. While it is not at all clear if Trump would really want to devalue the dollar, it is clear from his past statements that he has thought about it as one method of easing the debt problem and of making the US more competitive in international trade.

Oops, I said "Trump" there, I meant to say Bannon.

That's what Reagan did-- ran the printing presses-- and devalued the dollar. Had a boom for about 8 year. It was a different economic time however.

Can anyone really predict anything?

[reckless]

[QUOTE=pondman]

Originally Posted by Clocker

That's what Reagan did-- ran the printing presses-- and devalued the dollar. Had a boom for about 8 year. It was a different economic time however.

Can anyone really predict anything?

Reagan did nothing of the kind, especially about running the printing presses and devaluing the dollar.

Fed Chairman Paul Volcker tightened the money supply, causing interest rates to rise to over 20%. Why did he do that? To kill the rampant inflation and stagflation during the Carter years. Reagan/Volker made the dollar stronger, in fact.

During this early period in Reagan's first term, the death of inflation, tax cuts, and deregulation eventually led to the greatest economic boom of the 20th century, one that lasted through Bill Clinton's term.

Yes people could predict things -- but often incorrectly when those people are aligned with the mainstream press, 'establishment' enterprises in popular culture, business and finance... and most especially by national governments.

[lamboguy]

[QUOTE=reckless]

Originally Posted by pondman

Reagan did nothing of the kind, especially about running the printing presses and devaluing the dollar.

Fed Chairman Paul Volcker tightened the money supply, causing interest rates to rise to over 20%. Why did he do that? To kill the rampant inflation and stagflation during the Carter years. Reagan/Volker made the dollar stronger, in fact.

During this early period in Reagan's first term, the death of inflation, tax cuts, and deregulation eventually led to the greatest economic boom of the 20th century, one that lasted through Bill Clinton's term.

Yes people could predict things -- but often incorrectly when those people are aligned with the mainstream press, 'establishment' enterprises in popular culture, business and finance... and most especially by national governments.

he also had the very largest tax increase in the history of this country by eliminating personal deductions such as horse racing, credit cards and second homes while giving big tax cuts in the form of tax credits to banks and large corporation's throughout the land that invested in equipment and other manufactured goods. he was responsible for keeping Lee Iacocca in business with Chrysler K-cars with his tax credits. he also lowered tax rates. it was an amazing period of time for sure.

[lamboguy]

you could deduct horse racing bills against horse race earnings, but you couldn't deduct it against your paycheck or interest earning from the bank. before Reagan you could do those things.

[reckless]

[QUOTE=lamboguy]

Originally Posted by reckless

he also had the very largest tax increase in the history of this country by eliminating personal deductions such as horse racing, credit cards and second homes while giving big tax cuts in the form of tax credits to banks and large corporation's throughout the land that invested in equipment and other manufactured goods. he was responsible for keeping Lee Iacocca in business with Chrysler K-cars with his tax credits. he also lowered tax rates. it was an amazing period of time for sure.

True lambo... you are correct.

What I really, really, truly, truly, sincerely, sincerely, and most absolutely hate about most politicians, especially those phony RINO GOP politicians, is that they all feel that tax cuts need to be paid for, for chrissakes!

Village idiot Paul Ryan is allegedly holding up tax reform legislation under the guise of finding a way to 'pay' for the cuts Trump is calling for.