Wednesday, September 12, 2018

“Just Run the Presses—Print Money,” Trump Said

President Trump and Federal Reserve Chairman Jay Powell
Here is a big problem for the Trump fanboys who think President Trump is going to end the Fed.

According to Bob Woodward's  new book, Fear: Trump in the White House, after Gary Cohn, while in the White House as Trump's top economic adviser, explained to the president that that borrowing more money would, in fact, increase the deficit and add to the debt, something that would be counterproductive  for a president who had pledged to completely eliminate the federal debt., Trump responded:
Just run the presses—print money.
Cohn then told the president that just printing money would be detrimental to the fiscal and economic
health of the U.S., since printing vast amounts of money would to lead to inflation. . . . Cohn also pointed to the federal debt ceiling, a statutory limit to the amount of debt the federal government can have outstanding. Even approaching the debt ceiling can be harmful to the stock market and U.S. economic growth.

“It was clear that Trump did not understand the way the U.S. government debt cycle balance sheet worked,” Woodward wrote.
-RW  

4 comments:

  1. Yes but the MIC gets its money and screw everyone else.

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  2. It sounds like he does 100% as that is all they have been doing. Where was Woodward when Obama was president and doing the same thing?

    Government has a mechanism to steal prosperity and they have been using it. What was the phase Obama used? "You can put lipstick on a pig," he said as the crowd cheered. "It's still a pig."

    We don't even know how many electronic dollars they have printed.

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  3. But, But, it's moar MONEY, right??

    ReplyDelete
  4. "According to Bob Woodward's new book..."

    I don't trust the source, but I'm betting the plan will go forward. They may try a controlled crash to make Trump look bad for November, but then back to plan A: Always Print More.

    ReplyDelete