Make America Stupid Again!!

[ZahZoo]

I don't give anything in Washington DC much credit for the state of the US economy beyond the Federal Reserve...

The only significant thing the White House can directly do is drive sentiment and fuel the emotional perception that drives investment choice. While that can appear to have a strong impact on the markets... it has to have certain stable financial foundations operating in a healthy state to fuel growth. That's what we have right now.

At face value, many of the regulatory changes and tax breaks that Trump takes credit for don't have enough direct financial impact to have fueled the market growth at the rates we're seeing on their own. Companies have been sitting on tons of Free Cash Flow generated in the last 10 years and are now making capital expenditures which is putting more money into the system. Building more and more importantly selling more. The White House only enabled the market to feel better about spending money and accepting risk...

[Nitro Express]

I don't give anything in Washington DC much credit for the state of the US economy beyond the Federal Reserve...

The only significant thing the White House can directly do is drive sentiment and fuel the emotional perception that drives investment choice. While that can appear to have a strong impact on the markets... it has to have certain stable financial foundations operating in a healthy state to fuel growth. That's what we have right now.

At face value, many of the regulatory changes and tax breaks that Trump takes credit for don't have enough direct financial impact to have fueled the market growth at the rates we're seeing on their own. Companies have been sitting on tons of Free Cash Flow generated in the last 10 years and are now making capital expenditures which is putting more money into the system. Building more and more importantly selling more. The White House only enabled the market to feel better about spending money and accepting risk...

The Federal Reserve isn't part of the US Federal Government. It's a private bank. We really don't have a free market economy. Today debt is money and the amount people can spend is determined by interest rates. Rates decided by people inside the Federal Reserve Bank. No market forces at work just people deciding what the interest rate is going to be. If they raised rates it would bring the economy to a screeching halt because it would make borrowing money more expensive and everyone is owned by the bank these days. The banks own the homes, cars, the inventory in the stores. They own most everything. Much more powerful than a US president short of launching nukes.

[Nitro Express]

Washington does play a part though. They have to keep a kabuki theater going that there is command and control. The most visible part of this illusion is the White House. There has to be a command and control illusion there or people lose confidence in the US Dollar. That being said what else are you going to want? Chinese RMB? The Euro? Everyone is looking cuckoo now so people are just staying with the US Dollar. It's been the reserve currency longer.