Martin Wolf gets his blame in early

In response to an FT article by Martin Wolf on 10th November 2016, entitled ‘The economic consequences of Mr Trump’

https://www.ft.com/content/73262cb8-a72e-11e6-8898-79a99e2a4de6?desktop=true&amp%3BsegmentId=d8d3e364-5197-20eb-17cf-2437841d178a

“His administration might even reverse globalisation, destabilise the financial system, weaken US public finances and threaten trust in the dollar…

Mr Trump has supported repeal of the 2010 Dodd Frank Act, the regulatory response to the financial crisis. Many financial businesses hate it. Yet the question is whether it would be replaced by a more effective alternative or by a return to the pre-crisis free-for-all…

Mr Trump also wants a big surge of spending on infrastructure and tax cuts. The former would be desirable, particularly if the projects were sensible. Indeed, it would be deeply ironic if Mr Trump carried out, with Republican support in Congress, precisely the sort of Keynesian fiscal stimulus congressional Republicans adamantly opposed when reasonably suggested by the administration of Barack Obama in 2009. Unfortunately, the timing would be far worse since the US economy of today is vastly closer to full employment than it was back then…

Make no mistake: Mr. Trump’s triumph might destabilize the US and world economies” – Martin Wolf

Destabilize the US and world economies? The US and the world economies are already unstable Mr. Wolf.  When the next phase of the monetary crisis emerges in the bond markets, which it will, Mr. Trump will get the blame for it…conveniently so…at least for the economically illiterate fools that have occupied the Eccles Building, the Treasury and the White House for the past three decades.

Whether he can do anything to manage the fire better than his arsonist predecessors remains to be seen, but let’s be clear about one thing: whilst people like Robert Rubin and Larry Summers were trashing Glass Steagall and the restrictions on derivatives, whilst Bill Clinton was encouraging Fannie and Freddie to lend to anyone with a pulse, whilst Alan Greenspan was indulging the markets with his famous ‘put’; whilst Ben Bernanke was denying the existence of the housing bubble…Donald Trump was selling real estate and telling people ‘you’re fired’…you can’t have it both ways Mr. Wolf.

The avalanche, when it comes, will not be the fault of the last snowflake.