Jim Rickards: Trump’s Stimulus Plan Not Happening

Jon Economy, Fiscal Policies, Government, Health Care, Market Commentary, Socialism

Economist Jim Rickards appeared on CNBC’s ‘Squawk Box’ outlining his 2017 predictions for rate hikes, Trump stimulus, and the coming US recession. Rickards believes the markets are unwittingly pricing in a stimulus plan that will never materialize.
‘Trump wants to cut taxes. Steve Bannon is talking to his advisors about a trillion dollars of infrastructure spending, cutting regulations. All of these things are viewed to be highly stimulative. That’s why the market is going up. Pharmaceuticals are going up on the repeal of Obamacare, banks going up on the repeal of Dodd-Frank.’
The markets and the Fed have the perception that tax cuts and spending will continue despite the realities of a fiscally conservative congress, a $20 trillion of debt and a 104% debt-to-GDP ratio.

This post was published at Schiffgold on DECEMBER 27, 2016.