Reflation Cannot Save Trump From A Painful Recession
Donald Trump is a real estate guy. He knows American real estate skates on thin ice. His contract with Wall Street is to try to supply more bonds through deficit spending to Wall Street. But the Senate will likely not be behind this deficit spending as it relates to infrastructure. Trump has indicated that he wants to cut corporate taxes from 35 to 15 percent, and spend more on military and infrastructure.
Although almost every government tries in some form or another to avoid the collapse of an economy after a recent boom, none have ever succeeded in being able to avoid the contraction phase of the business cycle.
The question then is, are we in the middle of a boom or at the end of it? If we are at the end of this boom, reflation will only make things worse, and the recession deeper. Who will take it the hardest?
Likely those who will incur the most pain will be the working class supporters of Trump, along with the rest of...