JohnDe
La dolce vita
- Joined
- 11 March 2020
- Posts
- 4,289
- Reactions
- 6,350
Yes. And like I said, time will tell.
You are putting the cart before the horse, he has not even been sworn in yet.
We have yet to see any official nominations for the multitude of positions becoming available, only a few throw away lines.
When we see some real names, then you can make a guess about what they may or may not do.
Some of his choices last time around were not great.
Trump has shown in the past to be somewhat erratic, a tad arrogant towards just about everyone else, and has no interest or acumen in the world outside of the US.
It is to be hoped that those he does put in charge display the interest and acumen he lacks.
Mick
And here is me thinking that the US of A was the world, the whole world and the only world.You are putting the cart before the horse, he has not even been sworn in yet.
We have yet to see any official nominations for the multitude of positions becoming available, only a few throw away lines.
When we see some real names, then you can make a guess about what they may or may not do.
Some of his choices last time around were not great.
Trump has shown in the past to be somewhat erratic, a tad arrogant towards just about everyone else, and has no interest or acumen in the world outside of the US.
It is to be hoped that those he does put in charge display the interest and acumen he lacks.
Mick
Increasing tariffs would increase the Govt coffers I would expect.If the Trump administration can drastically reduce government expenditure, that will help take some of the load off of inflation and lending.
Figures from the Treasury Department show the federal government spent north of $6.7 trillion over the yearlong period that ended in September, running a deficit of more than $1.8 trillion during the time frame.
Trump is putting business minded people into positions to help reduce costs of duplication and waste, and also to find new innovation for productivity.
Increasing revenue will not be enough, they have to reign in spending.Increasing tariffs would increase the Govt coffers I would expect.
It would just be another indirect tax, as long as it is spent in a productive way creating jobs, it should be acceptable if it is squandered well there will be an outcry.
Being the reserve currency opens a lot more options than are available to second tier currencies, as was proven when the GFC hit and is a major reason for the BRICS forming.Increasing revenue will not be enough, they have to reign in spending.
And trump has already signalled a drop in company tax.
I don't see how he can really do much at all.
The level of debt is just so big and must be serviced.
Borrowing money to pay interest on the money you have already borrowed is only going to end one way.
the only debate is when.
So much of the financial decisions, both good and bad, are determined at a state level.
There are state income taxes, state sales taxes, excise taxes, royalty fees, license fees and property taxes.
As much as I would like to join in with the joy of those celebrating a trump victory, I really don't see a lot changing internally for its beleaguered citizens.
Mick
There is a lot of evidence showing that interest rate moves have a greater impact in Australia i.e. stronger transmission mechanism because we have high household debt coupled with a high percentage of variable rate loans.Aus never raised as much as everyone else.
And question is why can not Australian get a 20y loan on a fixed term if it is available elsewhere? We..aka RBA sell long term debt/bond.There is a lot of evidence showing that interest rate moves have a greater impact in Australia i.e. stronger transmission mechanism because we have high household debt coupled with a high percentage of variable rate loans.
The RBA has talked about this before.
In countries such as the USA and Germany they have a far higher percentage of loans being fixed rate. Therefore a 1% increase in interest rates in Australia has a lot more impact than a 1% increase in rates in USA or Germany or England, etc. Hence why Australian rates did not go as high this cycle as certain other countries.
Personally for what its worth I think all central banks should be abolished and markets should set interest rates.
they would rather quietly flush your super money into ' Green dream unicorn' projects ' whilst claiming the future growth potentialAnd question is why can not Australian get a 20y loan on a fixed term if it is available elsewhere? We..aka RBA sell long term debt/bond.
That would benefit everyone , smooth inflation but i believe it is due to our currency risk and the lack of self funding abilities.
We have billions in super, some supposedly in low risks fixed return.
Would that help inflation, probably a bit but it would also help home owners to sleep better at night
That could become a huge issue.they would rather quietly flush your super money into ' Green dream unicorn' projects ' whilst claiming the future growth potential
indeed , at MIGHT be slowly happening alreadyThat could become a huge issue.
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