Tag Archives: Trumponomics

I can already see some of the cuts ;) The Hill suggests that we should expect a huge decrease in government spending. According to them: Overall, the blueprint being used by Trump’s team would reduce federal spending by $10.5 trillion over 10 years. The proposed cuts hew closely to a blueprint published last year by the conservative Heritage Foundation, a think tank that has helped staff the Trump transition. In all fairness, I am not, or at least was not until now, expecting big...

Tyler Durden at ZeroHedge, and others, are discussing Bill Gross's recent rant on his monthly letter to investors about the yield curve and the possibility of a Trump recession. Bill Gross sees in the decline of the 10-year bond rate since the early 1980s a secular (like Summers and his secular stagnation, it seems everything is secular now) trend, and concludes that the long term rate cannot go above 2.6% or so. In his words: "So for 10-year Treasuries, a multiple of influences obscure a...

Deficit vultures A few days ago, Trump announced South Carolina Rep. Mick Mulvaney to be the director of the Office of Management and Budget. He is a Tea Party nut (he was for Rand Paul, and might have libertarian tendencies), and more importantly a fiscal hawk, and for a balanced budget amendment. Mulvaney is really for cutting spending, including, somewhat surprisingly, military spending, even if he thinks that defense is the first priority of the federal government. So this has...

Not by much. To 0.75%, and yes it wasn't necessary because we're not at full employment yet (Krugman thinks we're; his point is that wages are increasing again, but not that much and participation rates remain low). Two things worth mentioning. One is that Yellen agrees with Krugman, and that signals that the Fed doesn't get what's the current state of the economy. She said: "I believe my predecessor and I called for fiscal stimulus when the unemployment rate was substantially higher than...

See Trump’s call for at least a $500 billion program of government spending on US infrastructure here and here, without raising taxes. See the video here.Yes, it’s massive deficits for the US if Trump wins, and massive Keynesian stimulus, even if his tax cut plan is regressive like that of Reagan.

If Trump is elected president, his economic policies will either (1) crash America or continue its economic stagnation, and accelerate its catastrophic decline under neoliberalism (because Trump will impose an extreme form of neoliberalism, albeit maybe with some trade or labour protectionism) or(2) turn America around and actually impose big Keynesian stimulus, and trade and labour market protectionism. (2) will make Trumponomics nothing more than Reaganomics Mark II.Why? We know why. It’s...