The Trump Effect marchs on ...
Despite minor gains on the legislative front, the agenda of the Trump
Administration appears to be having trouble largely due to various
Republican factions within the House and Senate to function as a unified
Nevertheless, the market continues to believe in Trump's campaign
promises to ease regulations, lower taxes, enforce immigration laws and
bring prosperity to many of the middle class who were displaced as
factories moved to new locales.
Unfortunately, the rise of automation will create major roadblocks to
some of those expectations. As we pointed out years ago, demographics
and automation will create a society vastly different from that of the
period after WWII.
Trying to jump-start a $20 billion economy facing a $20 billion
federal debt and another $100 billion or so of unstated liabilities is
going to be a very difficult task if you ony increase the debt burden.
When interest rates rise, the "rubber will begin to hit the road".
April 1, 2017