In fact, it’s bananas all around! Bananas for you. Bananas for me…
Trump wants the US dollar lower. Period. The currency is one measure of the US relative standing in the world. Why should we be special? Let’s get down in the trenches and fight this currency war the American way; all in baby!
It is and has been a game of global Currency Whack-a-Mole, after all…
…as evidenced by how gold has been doing this against the whole sorry lot of them.
You win a game, you get a banana. You guide your currency to the bottom of the barrel, you win a bushel of bananas! Or is it a bunch? Whatever, it’s bananas!
So the savers and paycheck to paycheckers AKA a sizable portion of Trumpies, are back in the Fed’s cross hairs at the goading of a man they revere and trust to do right by them. Look, maybe there is nothing the guy (Trump) can do. He didn’t create this mess. Greenspan did, and then Bernanke put it on Steroids. But the hypocrisy of this “great America” crap vs. the reality of a simple macro parlor trick (competitive devaluation) is driving me bananas I tell you!
Here he is with the Fed’s action barely in the books, cheer leading the Fed to put another nail in the coffin of many of his own voters as bailing out and then enriching asset owners while expanding the gaping maw of debt is actually the American way (and one might argue, the modern global Keynesian way). Again, one day when price discovery goes ‘RUH ROH!!’ and costs shoot up again the piper will be paid by many. Same playbook as Bernanke/Obama with a very different face on the cover.
Here’s what he tweeted before the cut.
A problem for stock bulls may simply be this. Equity price levels from which this desperate action is being taken are a little bit different than the levels of ZIRP 1. Eh?
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