Bitcoin Forum

Economy => Economics => Topic started by: InSilva on September 06, 2016, 01:47:16 PM



Title: Trump says US has "false economy" and "artificial stock market"
Post by: InSilva on September 06, 2016, 01:47:16 PM
From RT.com:

Republican presidential nominee Donald Trump has described the US economy as “false,” saying that the central banking system is intentionally keeping interest rates low to prevent a new economic collapse.
“We have a very false economy,” Reuters reported Trump as saying in answering to a journalist’s question while campaigning in Ohio on Monday.

“They’re keeping the rates down so that everything else doesn't go down,” Trump added in response to the question, which was about a possible rise in interest rates by the Federal Reserve this month.

“At some point the rates are going to have to change,” Trump said. “The only thing that is strong is the artificial stock market.”

The ideas on rebuilding the US economy offered by the billionaire in an interview to Fortune magazine in April have been dubbed as questionable by some, while others argue that his approach may work out just fine.

“We have to rebuild the infrastructure of our country. We have to rebuild our military, which is being decimated by bad decisions. We have to do a lot of things. We have to reduce our debt, and the best thing we have going now is that interest rates are so low that lots of good things can be done – that aren’t being done, amazingly,” Trump said back in April.

Meanwhile, Democratic presidential frontrunner Hillary Clinton has not been so radical in her future plans concerning the US economy. However, she promised to support a shakeup in the top ranks of the Federal Reserve in an effort to increase diversity and minority representation within the Fed, Clinton’s campaign said in a statement back in May.

“The Federal Reserve is a vital institution for our economy and the wellbeing of our middle class, and the American people should have no doubt that the Fed is serving the public interest,” the statement said.

“That's why Secretary Clinton believes that the Fed needs to be more representative of America as a whole and that common sense reforms – like getting bankers off the boards of regional Federal Reserve banks – are long overdue.”

The Fed is currently headed by a board of governors based in Washington along with a dozen regional bank presidents spread across the US. The board is nominated by the White House and then approved by the Senate. Regional bank presidents, on the other hand, are chosen by their boards of directors, which are chosen by the banking industry and by Washington Fed governors.


Whatever you think about Trump, I think most people on this board would agree w/ Trumps views here. The Fed has funded an estimated 1,200 trillion dollars in derivative contracts while the actual amount of cash circulating in the US is closer to $1.5 trillion. What happens when there's not enough cash in the system to cover those liabilities? Plus, corporate debt is exploding and all they're doing with that capital is buying back their own stock instead of funding capital investment.


Title: Re: Trump says US has "false economy" and "artificial stock market"
Post by: panju1 on September 06, 2016, 04:13:30 PM
Yes, the stock market is one of the most inflated asset classes.
Home prices have risen, but are nowhere close to the 2008 peaks.
The stock markets are at All Time Highs.
When the music stops, everything is going to come crashing down.


Title: Re: Trump says US has "false economy" and "artificial stock market"
Post by: yayayo on September 06, 2016, 06:25:14 PM
I think Trump has a far better understanding of economical matters than any of the other candidates. He is not as intermingled with the financial establishment as the Clinton clan, that's why he talks more factually. His assessment of the US economy is correct - the cheap money from central banks coupled with low interest rates is not helping the real economy, its just creating another asset bubble.

What remains to be seen is if Trump is able to offer a real solution to the problem in case he is elected. I think that's questionable. On the other hand what Hillary does is more of the same, cementing the status quo from which she and her clan can drain more wealth and power. So voting for Trump leaves at least a tiny chance of positive change, while voting for Hillary guarantees a continuation of the downturn.

In the end I think it's up to the people. We all should vote with our feet and buy Bitcoin. So the central bank and debt problem is at least solved on an individual level... :)

ya.ya.yo!


Title: Re: Trump says US has "false economy" and "artificial stock market"
Post by: eddie13 on September 06, 2016, 06:35:37 PM

Meanwhile, Democratic presidential frontrunner Hillary Clinton has not been so radical in her future plans concerning the US economy. However, she promised to support a shakeup in the top ranks of the Federal Reserve in an effort to increase diversity and minority representation within the Fed, Clinton’s campaign said in a statement back in May.

How is a complete nonsense idea, like somehow minorities have something to do with the fed, less radical?

Is the fed racist? WTF sort of utter BS is that?

Is she going to boost the buying power of the peso or something?


Title: Re: Trump says US has "false economy" and "artificial stock market"
Post by: HabBear on October 01, 2016, 05:01:27 AM
Yes, the stock market is one of the most inflated asset classes.
Home prices have risen, but are nowhere close to the 2008 peaks.
The stock markets are at All Time Highs.
When the music stops, everything is going to come crashing down.

Opinions, maybe you're right. Trump's referring to the low interest rates. Some day they have to go up and the stock market will go down because money will flow from the stock market into savings accounts and increased cost of doing business. It's not artificial. It's not like the rates that everyone is using are fake. But raising rates raises the costs for everyone. In a weak or fragile economy, raised costs have negative impacts.

Maybe the low rates have been low for a long time, but none of us should be bitching. The cost of borrowing or holding debt is low, which saves us all money.


Title: Re: Trump says US has "false economy" and "artificial stock market"
Post by: Washika on October 01, 2016, 05:03:26 AM
I think Trump has a far better understanding of economical matters than any of the other candidates. He is not as intermingled with the financial establishment as the Clinton clan, that's why he talks more factually. His assessment of the US economy is correct - the cheap money from central banks coupled with low interest rates is not helping the real economy, its just creating another asset bubble.

What remains to be seen is if Trump is able to offer a real solution to the problem in case he is elected. I think that's questionable. On the other hand what Hillary does is more of the same, cementing the status quo from which she and her clan can drain more wealth and power. So voting for Trump leaves at least a tiny chance of positive change, while voting for Hillary guarantees a continuation of the downturn.

In the end I think it's up to the people. We all should vote with our feet and buy Bitcoin. So the central bank and debt problem is at least solved on an individual level... :)

ya.ya.yo!

hES A TOOL. iTS THE PEOPLE AROUND HIM WHO KNOW EVERYTHING NOT HE HIMSELF.