Wednesday, April 20, 2016

Trump Would Replace Yellen But Seems to Like Manipulated Low Interest Rates

“I think she’s done a serviceable job,” Trump tells Fortune when speaking about Federal reserve Chair Janet Yellen. “I don’t want to comment on reappointment, but I would be more inclined to put other people in.”

He also that he would “absolutely” support proposals that would take power away from the Fed, and allow Congress to audit the U.S. central bank’s decision making.

But he said, "The best thing we have going for us is that interest rates are so low. There are lots of good things that could be done that aren’t being done, amazingly.”

“People think the Fed should be raising interest rates,” says Trump. “If rates are 3% or 4% or whatever, you start adding that kind of number to an already reasonably crippled economy in terms of what we produce, that number is a very scary number.”

Trump says he would like to take advantage of lower interest rates in order to refinance the debt and spend more money to rebuild the military and the country’s infrastructure, according to Fortune.

Trump no longer wants to pay down all the debt. He told Fortune:
You could pay off a percentage of it, depending on how aggressive you want to be. I’d rather not be all that aggressive. I’d rather not have debt but we’re stuck with it. If I had a choice of taking over debt free or having $19 trillion – which by the way is going up to $21 trillion very soon because of the omnibus budget, which is a disaster. If I had my choice I’ll take no debt every time.
Trump showed more of his true colors in this intervies. He is economically clueless, far beyond his protectionist views. And continues to see himself as the man in charge during a Trump presidency who will centrally plan all problems, rather than moving in the direction of free markets and limited government.

A very scary guy. He's really a socialist.



  1. Block should start the following organizations:

    Libertarians for a Sort-of-less Dovish Federal Reserve
    Libertarians for a $12, Rather Than $15 Minimum Wage

    1. Yeah pretty much. I been seeing that "Trump will regin in the Fed" argument from Trumpatarians, it was a weak one when I first heard it a few months ago now its outright bad.

  2. Yeah, like most Americans, he's a socialist but the indoctrinated collectivism runs so deep he doesn't even recognize it. He seems to understand, in some mystical way, the power of gold as money but also seems to see the Fed as a fact of nature and looks to game it's centrally planned interest rates to his (or, in this case, the country's) advantage. Again, very American of him to hold contradictory political/economic positions. Maybe he'll do the real American thing and have the country do a "cash-out" refi on the national debt. Or just keep printing...

  3. Trump knows nothing and has no curiosity to learn what he does not yet know. He clearly believes that the "solution" is simply getting the right man in charge instead of leaving average people alone to find their own solutions.

    The sad reality is that this is the organic and spontaneous attitude of 95% of the US population. US political battles involve vicious fighting over their differing visions of the proper know-it-all elected dictator. The idea that there should not be a BIG BOSS or that the BIG BOSS is the problem just will not compute.

    This also explains US foreign policy. The populace clearly believes in the magical domestic AND foreign policy magic of FDR. Last week, Scott Horton interviewed Bronwyn Bruton, “a democracy and governance specialist with extensive experience in Africa”, who was a 2008-2009 international affairs fellow in residence at the Council on Foreign Relations (CFR). She explains that the USA just could not stand the idea of Somalia having no state even if it had the most advance cell phone system in Africa. It was much better to encourage the “Christian” Ethiopians to invade and slaughter. Exposure to these grisly facts causes 95% of the US populace to flatline and search for the next episode of the Kardashians.

  4. I know that RW has been pounding the “pretense of knowledge/BIG BOSS who can fix things” angle. When I posted above, I hadn’t yet seen Dan Sanchez making a similar point regarding foreign policy.

    BTW, the MMTers (who suffer from an extreme case of the pretense of knowledge) seem to have conquered the left with the mantra that IF ONLY THEY WERE IN CHARGE, THEY (via the treasury) COULD CREATE FIAT MONEY OUT OF NOTHING and pay for EVERYTHING. No more debt. No more scarcity.

    Thus, the national debt is illusory as is the $200 trillion in unfunded obligations. It can all be easily paid for since the government can never run out of fiat money. I am serious. This is what they think and this is what they say.

    1. Your comment IF ONLY THEY WERE IN CHARGE reminded me of Wags.

  5. Someone should slip Trump some ayahuasca and leave him in the woods to search for his spirit animal. And film it. New reality show.

  6. Perhaps his new handlers have suggested that he tone down his rhetoric on the debt.