The Fed is Screwed for trying to screw us

The Fed Keeps raising rates for no apparent good reason except to screw us.
The globalists have tried everything else. Nothing worked. This too will fail. It will have short term implications, but in the end the economy is roaring like a Ferrari at a stop light. If they keep over reaching (trying to stall the economy) Trump will simply pull the plug on them.

The reasons they have for raising rates this often do not make sense, and even normal people can see it. The problem they will face is that their approach is monolithic (they can ONLY raise or lower rates) Trump’s approach is multifaceted.

First he has improved the job market by lowering corporate and individual taxes and eliminating senseless regulations. That also served to both increase the tax base, disposable income, and business investment.

Disposable income begot Business investment, which then begot more manufacturing, and new manufacturing fields and plants. These plants then need people which begot the need for more people to work in said plants. That served to lower unemployment AND spur competition among employers for more skilled workers from a more shallow pool. That is leading to higher wages, and eventually the need for more educated, trained, and specialized skilled workers. This will lead to people returning to schools both traditional college AND technical trade schools. That will spur the need for more staff, classes, teachers, and programs to meet the needs of the new students. More jobs. Higher paying jobs. That will increase the tax base exponentially. It is like a big circle as the circle gets bigger (the expanding economy) more goods and services are needed, which then means more manufacturing, which then means more jobs available at higher wages. It will feed upon its self.

Think of it like this. A business produces a widget. Widget becomes popular, so they need to make more widgets. They need factories and people. The people who make factories then need more trucks, tools, cranes, etc. So they spend money in investment for those. Then those people spend money to make cranes. Then the crane Co needs steel, so they buy steel. Steel co needs skilled workers and raw iron and coal to make steel. Now you need miners. And so on.

Each step along they way more spending, more hiring, and at higher wages. Now the coal miners need a new truck, and we start the cycle all over again. Once the economy expands, it takes A LOT of screwing up (see Jimmy Carter, (bad tax, foreign, fiscal and domestic policies) Bill Clinton (NAFTA), and Barack Obama (EVERYTHING).

That is but ONE of Trumps approaches. He also has trade and tariff polices that will INCREASE GDP. On on the main drags on GDP is that any trade deficit comes DIRECTLY off the top off GDP. When Trump lowers the trade deficit, GDP will explode factoring the increased manufacturing here. Then, he is also lowering expenditures to NATO, the UN, foreign aid, boondoggles like TPP and Paris Climate accord. No wasted taxpayer $$$ from the treasury needlessly.

Now, we move on to decreased regulations. This along with tax reform will spur domestic AND foreign investment, including repatriation of $$$ stashed overseas during BHOs administration. Again more jobs, more manufacturing, more spending, higher wages, more competition. The circle gets BIGGER.

On foreign policy, by stabilizing NK, Iran (in progress) the mid east (in progress) and by limiting wars (in progress) we will have more $$ available that would have been used on bullets and bombs. Now that $$ can be invested in infrastructure here. More jobs, etc. Circle gets bigger again.

Also, by the new USMCA treaty, jobs and factories scattered across the world will come home. Just 1 example. We will make our own cars, using our own steel, with our own workers. The circle gets bigger.

So as you can see the Fed is screwing us by raising rates. Yes, that raises debt, but it is ALL they can do. Trump has multiple options in progress right now. He also has arrows still in his quiver. Oil, natural Gas, and other energy production like coal and shale. Then we will be an EXPORTER and not an IMPORTER. More $$, jobs, etc. The multiple raising of rates is attempting to stop a bulldozer going down hill with a traffic cone. It simply won’t work. Lastly, that is just what I (a nobody ) can come up with. imagine what else Trump, Ross, Lightzinger, ETAL have at their disposal. Sorry for length.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s