Over the week end, former Fed Chairman in the David Rubinstein show lashed out at D. Trump’s policies calling his tariffs policies “insane”, mostly working as an excise tax. He said that the next recession will be driven by “dramatically” rising debt. He said that adding USD1trn to the stock of debt meant, when combined with the current demographics, means that the US Debt/GDP is going to accelerate “in the immediate future”. Growth is not going to pay for it, he said, flagging the 3% growth forecast of the administration as unrealistic. He noted that capital expenditure is what determines productivity gains and that he sees very little of it. Referring to tight labor markets, he warned this should increase inflation and that we could be heading for a stagflationary period, similar to the 80’s. When asked what he would say to President Trump asking him how to solve the entitlements problem, his answer was … “Go somewhere else”. Crude oil accelerated its losses on Friday, dropping another 6% as a supply overhang (mostly due to higher US production and last minute exemptions exceptions brought to Iran’s sanctions after most producers readied to increase supply), rising concerns about the global economy and D. Trump thanking Saudi Arabia for lower oil prices and asking for more… Over the week end, D. Trump tweeted: “So great that lower oil prices are falling…It is like a big Tax cut, to our other good economic news. Inflation down (are you listening Fed)?”.
————- This is a brief exerpt of our premium subscription-based report. To join our free trial, simply click the link below. You won’t regret it! https://www.bentinpartners.ch/subscribe ————- Important Disclaimer: © Copyright by BentinPartner llc. This blog is not intended as a recommendation, an offer or solicitation for the purchase or sale of any security or underlying asset referenced herein or investment advice. Investors should seek financial advice regarding the suitability of any investment strategy based on their objectives, financial situation, investment horizon and particular needs. This blog does not include information tailored to any particular investor. It has been prepared without any regard to the specific investment objectives, financial situation or particular needs of any person who receives this report. Accordingly, the opinions discussed in this blog may not be suitable for all investors. You should not consider any of the content in this report as legal, tax or financial advice. The data and analysis contained herein are provided "as is" and without warranty of any kind. BentinPartner llc, its employees, or any third party shall not have any liability for any loss sustained by anyone who has relied on the information contained in any publication published by BentinPartner llc. The content and views expressed in this report represents the opinions of Marc Bentin and should not be construed as guarantee of performance with respect to any referenced sector. We remind you that past performance is not necessarily indicative of future results. Although BentinPartner llc believes the information and content included in this report have been obtained from sources considered reliable, no representation or warranty, express or implied, is provided in relation to the accuracy, completeness or reliability of such information. This blog is also not intended to be a complete statement or summary of the industries, markets or developments referred to in the blog. #DollarIndex @federalreserve #ForexMarket #ForexNews #USD #USTreasuries #TradeWars #Markets