Trump and the Coming Global Financial Squeeze
From the print edition of The New American
Defying the predictions of all the so-called experts, Donald J. Trump sailed to victory in the 2016 race for the White House. The financial and equity markets also defied the “experts,” who had predicted that a Trump win would precipitate a massive decline in the stock market. Instead, the stock market has taken off on a blazing streak, setting the best election year performance since 1945. Instead of falling to 900 points, as anti-Trump analysts had forecast, the Dow Jones Industrial Average has raced up past 24,900 and is headed toward 25,000. The bulls are rejoicing and projecting more record-setting profits and economic growth from here to eternity.
However, memories are woefully short, and seemingly forgotten is the fact that a similar “irrational exuberance” preceded our great financial crisis of 2008-2009. That calamity was the end result of out-of-control federal spending and lending policies combined with the ever-destructive monetary policies of the Federal Reserve. The fake prosperity bubble, pumped up with fiat money and government-promoted malinvestment, finally popped, as bubbles inevitably do. (Here at The New American, we had been warning of the coming bubble explosion for several years, while the “exuberantists” insisted that everything was just fine.) Still haunting us are the consequences of that devastating debacle of less than a decade ago: gargantuan bailouts of the politically privileged Too-Big-To-Fail (TBTF) banks and the vast new powers and functions assumed by the Federal Reserve.
JBS Member or ShopJBS.org Customer?
Sign in with your ShopJBS.org account username and password or use that login to subscribe.
Subscribe Now
- 24 Issues Per Year
- Digital Edition Access
- Exclusive Subscriber Content
- Audio provided for all articles
- Unlimited access to past issues
- Cancel anytime.
- Renews automatically
Subscribe Now
- 24 Issues Per Year
- Print edition delivery (USA)
*Available Outside USA - Digital Edition Access
- Exclusive Subscriber Content
- Audio provided for all articles
- Unlimited access to past issues
- Cancel anytime.
- Renews automatically