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The plan is crystal clear: 1. When equities crash, market liquidity floods the bond market causing yields to drop 2. Refinance debt at these lower rates massi
by thethimble 2y ago
The plan is crystal clear:
1. When equities crash, market liquidity floods the bond market causing yields to drop
2. Refinance debt at these lower rates massively reducing interest burden
3. Cut government spending to cause rates to drop further
4. Reduced rates with a balanced budget results in non-inflationary borrowing and an economic upswing
Along the way, eliminate taxes for those earning below $150k.
If all of the above happens at the expense of equity holders so be it.
This plan has been made clear by multiple people from within the administration (namely Bessent who is one of the greatest macro investors of all time).
Now there’s many things to criticize in this plan (and lots of risk and unknown possible second order effects), but to describe it as “genuine chaos” or ineptitude is strange.
- piva00 2y agoIt's not that crystal clear when the ideas from Stephan Miran to reshape the world order by turning allies into vassals is also part of the plan. There's a plan, it's to reshape the global trade à la Bretton-Woods, and the Plaza Accords. The rest is just noise and plausible deniability for people to gobble up and accept to have been shoved into a New World Order.
- nitwit005 2y agoLet us know what the new plan is when Trump does something that doesn't fit with this.
- tasuki 2y ago> This plan has been made clear by multiple people from within the administration Do you have sources? (I also subscribe to the "genuine chaos" theory, but your comment makes sense)
- ttyprintk 2y agoThe first three points: https://www.foxnews.com/person/r/tanvi-ratna https://www.foxnews.com/person/r/tanvi-ratna It’s weird that Congress, the body constitutionally responsible for tariffs and their results, acts like they don’t know about it.
- gdilla 2y agoor they could've... taxed wealth. But the broligarchs who control trump wouldn't be ok with that.
- AlecSchueler 2y agoBut could they? Don't they all have unavoidable loopholes to avoid paying?
- gdilla 2y agowe're talking about law makers who can, you know, close loopholes.
- AlecSchueler 2y agoMy understanding is that the loopholes exist because international trade exists and therefore capital can be juggled through various different states to avoid the tax payments. That is, it's outside the legislative scope of any single set of law makers.
- thepear5 1y ago> When equities crash, market liquidity floods the bond market causing yields to drop I don't know much about markets so genuinely curious as to why the opposite happened in practice (yields went up)?