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Friday, November 02, 2018

The 11/9 economy

The Washington Post on October 5, 2016, reported, "A President Trump could destroy the world economy."

Fortune magazine reported on October 6, 2016, "Donald Trump Could Cost the Stock Market to Lose $2 Trillion."
Politico reported on October 21, 2016, "A Trump win would tank the markets."

I will spare readers Paul Krugman's Election Night meltdown. For now.

And there was the Bizzaro report in Investor's Business Daily on November 1, 2016, "FBI Reveals More Evidence That Stocks Will Fall If Trump Wins."

That raises the question of why the FBI was gathering stock information. Did the Obama administration want to manipulate Wall Street?

But just as the political experts missed President Trump's election, the financial experts missed the impact of Trump's presidency. They call our election of Donald John Trump as president 11/9 -- a reference to the day after the election -- as if it were 9/11.

However, 11/9 is the opposite of 9/11.

Two years after 11/9, the stock market is 25% higher.

We have gained 5 million jobs, dropping Obama's 4.9% unemployment rate to 3.7%.

We added a half-million manufacturing jobs -- jobs Obama said are not coming back.

We added more than 600,000 construction jobs. 

Unemployment for every ethnic group is at or near a historic low. 

There are more job openings (7 million) than there are jobless (6 million). The biggest reason is people went to college and majored in Gender Studies and other navel-gazing adventures instead of welding.

People talk about Trumponomics. There is no such thing. It's called capitalism. The United States has been trying to tinker with the economy so much that we have forgotten what it looks like. 

President Trump shed those regulations that evolve just for the sake of evolving. Too often, they have little to do with protecting the people or the environment.

Remember when "inverted" companies was a problem?

American companies would buy a small company in another country and move their headquarters there. Obama said these companies "effectively renounce their citizenship." 

But I thought liberals didn't believe companies have rights.

You haven't heard much about inverted companies. That's because President Trump and the Republican Party solved the problem by cutting our corporate tax rates rates by 40%, bringing them down to the European Union's average of 21%. 

After electing as president nine former senators or governors in a row (with a former House minority leader serving as an interim president) Americans went with a businessman.

Now we collect the benefits of that very wise decision.

U.S. employers added a stellar 250,000 jobs last month and boosted average pay by the most in nearly a decade in an effort to attract and keep workers.

OK, this is a good time to relive the Krugman Meltown.
It really does now look like President Donald J. Trump, and markets are plunging. When might we expect them to recover?
Frankly, I find it hard to care much, even though this is my specialty. The disaster for America and the world has so many aspects that the economic ramifications are way down my list of things to fear.
Still, I guess people want an answer: If the question is when markets will recover, a first-pass answer is never.
Under any circumstances, putting an irresponsible, ignorant man who takes his advice from all the wrong people in charge of the nation with the world’s most important economy would be very bad news. What makes it especially bad right now, however, is the fundamentally fragile state much of the world is still in, eight years after the great financial crisis.
It’s true that we’ve been adding jobs at a pretty good pace and are quite close to full employment. But we’ve been doing O.K. only thanks to extremely low interest rates.
There’s nothing wrong with that per se. But what if something bad happens and the economy needs a boost? The Fed and its counterparts abroad basically have very little room for further rate cuts, and therefore very little ability to respond to adverse events.
Now comes the mother of all adverse effects — and what it brings with it is a regime that will be ignorant of economic policy and hostile to any effort to make it work. Effective fiscal support for the Fed? Not a chance. In fact, you can bet the Fed will lose its independence, and be bullied by cranks.
So we are very probably looking at a global recession, with no end in sight. I suppose we could get lucky somehow. But on economics, as on everything else, a terrible thing has just happened.
George Soros and others tried to short the market on Election Night and throw the economy into a panic.

The money men refused to panic. They knew a good thing when they saw it. Americans are $10 trillion richer today than they were two years ago. Soros and other market manipulators are billions poorer.

Money talks. Idiots squawk. And we all know what walks.

###

Please enjoy my books in paperback and on Kindle.

Trump the Press covers the nomination.

Trump the Establishment covers the election.

Fake News Follies of 2017 covers his first year as president.

For autographed copies, write me at DonSurber@gmail.com

7 comments:

  1. Krugman said, "Under any circumstances, putting an irresponsible, ignorant man who takes his advice from all the wrong people in charge of the nation with the world’s most important economy would be very bad news."

    What amazes me is that the entire Left still believes every word of that. They haven't learned, and I don't think they can learn, that they were 100% wrong!

    Vox Day wrote a book, "SJWs Always Lie," which says that after telling a lie & being proven wrong, they double down on their lie. Truer words were never spoken! Krugman's still making the same exact claim.

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    1. I think Krugman's actual statement was correct: "Under any circumstances, putting an irresponsible, ignorant man who takes his advice from all the wrong people in charge of the nation with the world’s most important economy would be very bad news." He just referenced the wrong presidential election.

      Because it was indeed very bad news when this country elected the ignorant, ill-prepared, unseasoned, uneducated Barack Obama as president (along with his styrofoam columns). We rectified that error eight years with the election of Donald Trump. Let the good times roll!
      -TK

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    2. The biggest stock market gains and biggest drop in unemployment in history came under Obama. Good try.

      The U.S. just recorded is largest trade deficit ever last month - along with its biggest trade deficit with China; the national debt hit $21 million for the first time ever recently; and the U.S. borrowed a record $83 billion last month. Government spending has grown 7 percent in the last quarter while the economy has grown less than 2 percent. Farmers are shutting down operations in record numbers and just yesterday, it was reported that the five biggest Wall Street sectors are supporting Democratic candidates in this year's election for the first time in 10 years.

      President Yeti has does some radical things for short-term economic gain (like Clinton) but the bubble is getting thinner.

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    3. "it was reported that the five biggest Wall Street sectors are supporting Democratic candidates in this year's election for the first time in 10 years"

      Nothing says "man (or woman) of the people" quite like being the candidate beholden to Wall Street.

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    4. It's always end of days for the trolls. Living in them make a them feel good because they think when it all goes down they will be in heaven with Barack and we will be in hell with Trump. But as Mark Twain said " Heaven for climate, hell for society." Oblamea hated the United States. He happily and purposely left behind a winter of hopeless discontent. Trump has turned it into a sprightly summer of hopeful optimism, to ravage a Shakespeare line. Trump will be revered for that long after his predecessor's library becomes a concrete ruin covered in graffiti, as you can bet it will.

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    5. Someone doesn't know the difference between million and trillion. And for that matter the debt was higher in 2015, so it's basically just another lie.

      You also forget that many of us live in farm country, so all we have to do is think about the last time we saw a farm for sale. Gee, not too many of those. Seems most of the trouble is in dairy, which has a history of ridiculous subsidies and controls, and has been shut out of Canadian markets. Oh. What's that? Trump got the Canadians to lower milk tarriffs? Gee, why didn't Obama do that? And now we have all of these dairy farms going belly up and our resident troll blames Trump.

      Go to Hell, faggot.

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    6. "The biggest stock market gains and biggest drop in unemployment in history came under Obama."

      I see these talking points a lot. What policies did Obama implement that are responsible for those two things?

      Bonus points for explaining how people dropping out of the work force along with one of the lowest labor participation rates in history during Obama didn't impact the lowering of the unemployment rate.

      Double bonus points for explaining how the Fed. keeping interest rates at zero during the Obama reign didn't energize the stock market.

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