Friday, March 2, 2018

On Mr. Trump's Decision to Hitch His Presidency to the Economy

It's a massive mistake in that while things seem pretty decent now (especially the stock market), the fact of the matter is that the economy is largely being propped up by easy money, artificially low interest rates, and multiple bubbles (real estate, the stock market, student loan debt, the national debt, etc.) that simply cannot go on forever (though I did hear Dan Mitchell from Cato today proclaim that it could conceivably go on for decades in that the U.S. will probably be the final "domino" to fall; the fact that we're still the world's number one economy, possess the currency of choice, etc.). I mean, I understand that it is in the DNA of virtually every politician (even the nouveau ones like Trump) to try and take credit for the good things that take place during their tenure and all but damn, this whole thing could get ugly very fast and when it does guess who'll get blamed for it. Yeah, huh?

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