Trump’s Ineptitude Causes Huge Drop In Investment, Future Of Our Nation Is In Peril
by Stephen D Foster Jr –
America’s creditors are now thinking twice about investing in our nation because Donald Trump’s policies have turned us into a bigger credit risk.
On Election night, as the returns came in favoring Trump for president the stock market took a hit and the dollar dipped in value. It soon bounced back but markets around the world and in the United States are nervous about what will happen as long as Trump continues to push an economic policy that significantly lowers taxes on the rich, slashes regulations, boosts spending like never before, and antagonizes American and foreign businesses.
Trump’s escalation of confrontations with Iran and China, along with European fear of an invasion by Russia have also left the future of the world economy in doubt.
Trump has been erratic, paranoid, and quick to whine on Twitter and has shown a willingness to attack businesses that make decisions he disagrees with.
And Donald Trump’s unpredictability is forcing foreign investors to stop investing in United States Treasuries.
According to Bloomberg,
Across the world, foreigners are pulling back from U.S. debt like never before. From Tokyo to Beijing and London, the consensus is clear: few overseas investors want to step into the $13.9 trillion U.S. Treasury market right now. Whether it’s the prospect of bigger deficits and more inflation under President Donald Trump or higher interest rates from the Federal Reserve, the world’s safest debt market seems less of a sure thing — particularly after the upswing in yields since November. And then there is Trump’s penchant for saber rattling, which has made staying home that much easier.
Bloomberg goes on to point out that “any consistent drop-off in foreign demand could have lasting consequences on America’s ability to finance itself cheaply,” which means the cost of running the federal government could skyrocket and fall upon the shoulders of struggling working class Americans who will see their taxes rise as the wealthy escape their own responsibility for providing revenues to the government.
And as Trump continues to initiate trade wars against China, Japan, and other nations, it could further justify foreign investors from investing in the United States.
We could be looking at an impending economic catastrophe as long as Trump continues to make America a credit risk. He wants to double down on the failed trickle-down economic policies Republicans are obsessed with and if he repeals the Affordable Care Act, that will create further chaos as the wealthy pay less in taxes and the deficit increases. Our economy is primed to implode and foreign investors see it coming. Investing in America is too risky right now, and it is only going to get worse. And Trump is to blame.
Reprinted with permission from Addicting Info