MARKETS INSTABILITY DEMONSTRATES TRUMPS REMARKABLE DAVOS STUPIDITY

Meanwhile, Republicans push borrowing and spending way past Obama. Become the biggest borrow and spenders in US History. We called it before… it is a Bush Third term on steroids. Spend Borrow Spend. RINOs kill the GOP by turning it into the Democratic party. Liberal Ivonka is delighted. Kid Zombie wants to know if we landed on Mars yet? Trophy is out at the spa sulking.

 

Why in the hell must Trump always run his big stupid mouth? The rhetorical question of the decade.

Davos is not any place a normal President would travel, Trump insisted on going in order to demonstrate his microphone blowhard skills. His insistence that he is the reason for the US stock market’s rise based on his policies is insane. What policies are those? Borrow and Spend like Obama on steroids?  If he is referring to his constant meddling in free markets with his Twitter account or his endless revelations about his mental illness and porn star payouts, he may be right. The markets are starting to look as unstable as Trump.

 

The markets started cracking when he opened his yuge stupid mouth at DAVOS.

First, he insisted on presenting that moronic AMERICA FIRST PROTECTIONIST nonsense and then he attacked the CHINESE who buy US Debt. What happened? Bonds sold off. Transports sold off. Anything to do with trade got injured because the dollar is the reserve currency. This has set off a chain reaction and the bond market is in serious danger of collapse at this point. That will also raise the debt service on the future funding of debt.

Then Trump insisted that he wanted a high dollar policy when his own Treasury secretary said the Treasury would follow a low dollar policy. Steve Mnucnin the jelly-spine wrist-licker then followed Trump into the abyss recanting his low dollar policy. The Bond market then blew apart. There is no confidence in Trump or his stupid appointees.

The instability has grown by leaps and bounds following Janet Yellen saying she thought that asset valuations were high. That was code for FED tightening and that interest rates would rise. This broke the back of the markets by suddenly jolting the high leverage funds chasing volatility. The markets broke and may still be in for a massive fallout.

 

Nobody is talking about the extent of the damages but that just means it is worse than expected and likely the same banks that caused the subprime are behind this.

The new Fed Chairman doesn’t know his head from his ass. He’s not even an economist. He’s a lawyer. He’s been silent as the lambs. More simply nothing is working. Trump has added nearly three trillion of new debt to the debt ball. This is a faster rise in the debt than Bush II and Obama COMBINED!

And while you are not watching, Congress and the Senate are raising the debt ceiling and budget by another 400 billion which will grow to over 1 trillion shortly. Mortgage rates spiked to a four year high. That ought to shut down the housing markets and cause home prices to fall. The entire US Asset collection is falling. This is an elevator ride to hell thanks to the blowhard in the White House.

With Trump, there is no such thing as leadership. He is mired down with his FBI issues. Trump has the attention span of a goldfish.

He is pushing awfully close to the offense of strong-arming the FBI which is a form of obstruction. He is trying to leverage some kind of popular support over his FBI problems when the nation is more worried about the instability in the market.

There are enormous losses in the bond markets and equities continue to suffer seismic tremors. It hardly looks to be over. If anything, it is looking more unstable than ever.

If Russia, China, and Arabia start pulling out of the US Treasuries, its over. The United States economy could actually be completely destroyed. You have a one-party system of incumbents, the big borrow and spend party. The debt is coming home to roost.

During DAVOS, it was revealed that the three richest persons in America: Bezos, Gates, and Buffett owned the assets of 50% of the bottom half of the entire US Population. That is 168 million people. That is massive instability. Trump just borrowed $1.5 Trillion and essentially gave it to the rich and gave the bill to the Taxpayers. This is not capitalism; this is cronyism.

We advised some time ago to move more to cash and out of the markets. When markets are high you sell them. When they are low you buy them. Are they now low? No. Further, nobody is really talking about the damages yet. So there is no way to gauge how bad the problem has become.

 

Can this harm the economy? Yes, it already has.

Credit has tightened like a drum skin. Liquidity is falling. Everything is freezing. Another week and the GDP will drop a full point then it is anybody’s guess from there. The credit markets are completely unhinged.

 

Trump is seriously mentally ill.

Because of his wealth, many of his ardent followers think that means Trump is smart. But the problem is that Trump’s father was one of the richest men in American. Trump has always been a product of his daddy’s money.  His tiny vocabulary clearly shows that Trump is a simpleton. Trump is a con-artist and grifter so he’s out for himself when he is not paying hush money to porn stars. What a loser. He was cheating on Trophy who had just given birth to Kid Zombie.

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