The Real Movement

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Trump has declared war on the Federal Reserve…

Taken from CNBC:

The knives are out. Trump will campaign against the Democrats by using the Fed as a foil. Just to be clear, the Fed is a proxy for Wall Street. When the Democrats rush to its defense, they will destroy their own credibility.

If anyone but Trump were president right now, this country would be losing its mind…

What you are looking at in the chart below is likely the most frightening chart available to economists today: 10 year benchmark long-term government bond yields for Germany, France, Switzerland and Japan. The chart shows that yields for each of these countries has reached or broken through the dreaded zero-lower-bound.

I think, the implications of this chart are that most advanced economies of the world market are now firmly trapped in a deflationary death spiral.

10 year benchmark long-term government bond yields for Germany, France, Switzerland and Japan (Source: St. Louis Federal Reserve)

If Donald Trump were not president, economists would be losing their minds about right now. The reason they would be losing their minds is simple: the above chart shows that monetary policy is dead and U.S. allies have no real tools at their disposal to fight the onrushing catastrophe. Without a massive fiscal stimulus on order of World War II, the United States will quickly follow its allies into the abyss.

But a massive fiscal stimulus package at this time would guarantee the reelection of Donald Trump and no one wants that. So they have their fingers crossed.