Economics,  Politics

Trump and the Fed

This is what David Rothschild, of the infamous Rothschild banking family that funded British Colonization into Africa (Rhodesia) and helped start the first central bank, said to Donald Trump criticizing the Fed.  For context here’s the Tweet that he is responding to.

I don’t agree with the all the reasons why Trump is attacking the Fed (ie. a strong dollar is not always good), but he’s right in that they don’t have a feel for the market. My biggest critique of the fed would be that they centralize the price of interest into what ends up to be essentially random guesses instead of market signals. But this is largely aside from the point.

And I don’t care if criticizing the fed makes the market plummet. While I want a strong economy with stocks going up because of businesses doing good, if the market can plummet because the Fed is criticized, does that mean that the economy is really strong?

Hopefully we can have meaningful reform to weaken or maybe even end the Fed. While I don’t think it will be for the right reasons, it will still be a positive step. And there is hope for optimism.

Back on the campaign in 2016, Trump said that the Fed needed to be audited.

Maybe I’m being too optimistic since Trump expedited the resignation of Secretary of Defense Mattis, pulled the last of the US troops out of Syria, ordered to about half the troops out of Afghanistan, and said the government is going to be shut down until border funding is secured. And these things have been done in the past 2 or so weeks.

All of these are campaign promises that Trump has only just recently done, so maybe with this built up momentum and the recent attack on the Fed, Trump will do something about the Fed? Which was another campaign promise. One can only hope.

In fact, I think that his approval rating, among Republicans will be higher by the first of January then it was at the first of December because he has made more of his campaign promises. While it will be lower by January for Democrats than compared to December. But we’ll see.

 

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