Saturday, April 28, 2018

Here Is What The Next President Will Face

The American president [Trump] is trying to stimulate the economy with a fiscal Keynesian plan. In the coming ten years US federal spending will grow by a stunning 60%, which is a result of increasing social security liabilities and further implementation of the Paul Wolfowitz doctrine of keeping the US as the sole world superpower. This growth of spending has to be financed by taxpayers. Since the US mainstream media are in cahoots with the Trump administration, they are talking about massive tax cuts, all this despite the fact that the US federal government expects tax income to increase by 5% annually, which appears to be wishful thinking.

Even if the US federal government income increases by a staggering 60% over the next ten years, the national spending plan will lead to an unprecedented shortage.

The US deficit will have reached 1 trillion by 2020 while during the same time the FED will be reducing its balance sheet by selling its treasuries. In the coming years, there will be a tsunami of treasuries flooding the market, as both the FED and the US treasury sell US government bonds, without there being a buyer of the last resort, that is the FED.

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Add to that our huge trade deficit and four years of diplomatic blundering, and you have a bubbling cauldron of trouble for our next president.

If Trump runs for reelection, he will be defeated in a landslide. And the next president will have to enact draconian policies to keep the whole house of cards from collapsing.

The post-2020 years will not be a pretty sight.

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