If we have to find a character from Greek Mythology to compare Donald Trump to, it has to be Narcissus. He is simply 'A Man who is in Love with Himself'. Nothing else. As per Trump, any thing which happens in the World is a Cosmic reaction to every Trump's action. This self admiration is greatly described by his love for Twitter and the eagerness to respond to even mundane debates. So some idiotic reporter questions his weight, he simply cannot ignore thy remark; he has to respond; and those responses make him look more stupid in reality. In World Politics you will not find any other leader who admires himself so much; may be Kim Jong-un come a close second!
The fool doth think he is wise, but the wise man knows himself to be a fool. William Shakespeare
Throughout the Trump Presidency so far, we have been very much entertained. I don't think there has been a dull day from the time Trump took office. At times his penchant to react and overreact have made him appear like a complete fool in front of the World audience. The way he described the attack on Syrian air base cannot be even called childish by Children's standards. His way of reacting have already started to hurt American authority across the World. Middle-East is practically lost for America after Trump's stupid two actions - supporting Qatar embargo immediately and then retracting and the biggest of all - the Jerusalem Embassy decision.
On the political front his actions have already started to produce huge consequence - he is on the verge of starting a Russia-Ukraine war and it's just a matter of time Eastern Ukraine start to burn again (this time Russia cannot stand on the sidelines). At the same time he has managed to create a huge rift between USA and Turkey and only God knows where the latest adventure of Erdogan will end up! But technically a Russia-Ukraine war or Turkey-Syria war will not hurt Trump's image in front of his supporters; but what he did in Davos may hurt him in not so distant future.
Trump takes Full Ownership of Stock Market's 'Trump Rally'
In the World Economic Forum discussion of last week, he described himself as the reason for the 'Trump Rally' and also derided Hillary Clinton saying "Had she have won, the stock markets would have gone 25-50% on the downside rather than the present 50%+ upside'.
That came as a surprise to many including myself as everyone expected the market to tank after Trump was elected instead of Hillary. And they did tank for a good 4-5 hours; after that it was all the same. Jim Rickaards's have mentioned this phenomenon and gave an explanation in 140 characters or less.
Trump is a nationalist. He wins, markets rally. Macron is a globalist. He wins, markets rally. The name for this logic is "bubble." pic.twitter.com/xX6eAou4Li
— Jim Rickards (@JamesGRickards) 24 April 2017
It's not surprise that Trump made such a statement claiming him to be the real reason why the market rally occurred. To an extent he believes the same. He always points out the rally as an example of how things are changing. But the reality is far from it; the stock market rally is happening due to only one entity - 'The FED'. They have printed so much money and purchased all the bad securities bank was holding, it was natural that financial assets will go into a hyper-inflatory period. It would have happened the same way had Hillary was elected; may be the spike would have been much bigger.
By claiming the credit for the rally Donald Trump has now totally owned the subsequent 'Economic Crash' that is going to come. He cannot hide from the responsibility of that when it comes; and it's just a matter of time before the crash starts. The Global Bond market sell-off is already unnerving the Central Banks and every eyes are on to see when Stock markets joins the flow. The rising yield of bonds are already making borrowing costly and that is hurting Government coffers across the world. Additionally many financial experts are worried about the spread between the US 2 Year Treasury notes and 10 year treasury notes.
Donald Trump's Supporters still bets on the Miracle Recovery
Every thing indicates a market recession round the corner; one which may at least in the initial phase make the 2008 crisis looks like a small event. And with such a situation around the sane thing to do was not to go around and boast about "Look How big is my Rally!". It's not only that Trump is delusional, he has got his supporters also delusional. The kind of Euphoria generated by some Financial advisers on hearing about 'Trump Tax Reform' make for an interesting case study. An year ago, these guys were rightly pointing out at the structural imbalances of the the economic system and called for major overhaul of the system. Now one seems to wonder whether they have a different take on the imbalances after Trump managed to make their net worth increase by the tax cuts.
The usual argument for the 'Trump Tax Reform' is how the Corporations will bring in money held overseas and invest in USA and result in more Jobs and more Growth. Isn't this the same argument they put forward when they were selling you the 'Outsourcing Mantra'? Outsourcing was supposed to increase the revenue of Corporation, which they will invest back in USA and generate more Jobs! Not a single one of that turned true and Trump's election was a testimony of the same. Corporations will invest more if they see a chance ofr making profits, not because they are holding onto 'Ton Loads of Cash'. It's pretty simple - more Corporate Profit doesn't mean more Investments. People still falls for this kind of stuff!
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