E Trumponomics: Increase Exports, Slow Imports, Bludgeon The New Normal

Trumponomics doesn't look at it that way. Increasing the supply of oil could make prices decline according to the report. But if Trump wants to please Vlad Putin, prices would have to go up, not down.

Trumponomics seeks American production of low cost products, and expects the world, which will no longer be able to dent American markets, to have the prosperity to buy an even more exports from America than they do now. I think it is madness.

About this inflation/reflation push by the Trumpians, Edward Lambert told me by email:

 

Truly I see strong headwinds to inflation. But if the new government insists upon pushing for strong fiscal stimulus, then the model in my post describes what will happen. High inflation potential and high interest rate potential.  It is wiser to go slowly with the fiscal stimulus when this close to the end of the business cycle. I assume Alan Greenspan sees something similar.

Dr Lambert was referring to Alan Greenspan's worry about stagflation. Here is the post he made for reference. It is worth reading and the Fed should be ready for what may happen with Donald Trump as president, as Professor Lambert projects a Fed rate path.

 

Business Cycle Ending Based on Effective Demand (Green Line)

 

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Disclosure: I am not an investment counselor nor am I an attorney so my views are not to be considered investment advice.

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