U.S. Federal Reserve leaves rates steady, pledges patience on future hikes, the Trump Economic Crash Draws Near – January 30, 2019,

Most of us in the financial sector found it odd that Donald Trump would claim that because of his changes to the U.S economy the stock market is booming, too many of us in the financial sector this was a bit short-sighted on his part, however in Donald Trump’s defense, from my standpoint I think he anticipated losing the House of Representatives to the Democrats while at the same time gaining seats in the Senate. Personally, I think Trump’s strategy all along was to make a lot of noise, so when he lost the mid-terms he could use Democrat obstruction to help him win the 2020 U.S Presidential Race.

With that said what I don’t think Donald Trump anticipated was Powell raising interest rates as aggressively as he did. Because the reality is now the U.S and therefore the world economy is deterring on the edge of a Stock Market crash. I always have to point out to readers of mine that a stock market crash in 2019 won’t affect main street or financially responsible individuals very much. The coming crash is a wall street crash and the problem, the major problem with the coming Wall Street Crash are retirees or people who have their entire life savings in the stock market. A lot of people don’t even know that their life savings are in the stock market, people with 401K’s and other forms of market-based retirement plans are all screwed if this market crashes mainly because of wage based-price controls in all sectors of the U.S economy.

In a truly free market economy, when the market crashes, you get a price and wage deflation, it’s actually the cash or income-producing assets that rise in value. This has always been hard for most people to understand which is why most people in first world nations prefer Keynesian economics, which oddly enough works best with central banking and fiat money. However, because wages can’t deflate and the government depends most on taxes collected via Labor, which in reality is the only money worth anything of value, there’s little to no hope for the U.S economy to actually crash without changing the way people view money, wealth and social safety. Below is a Reuters article I found on MSN that you may want to consider reading:

U.S. fed leaves rates steady, pledges patience on future hikes – Reuters

Now, what’s happened under Powell is that the U.S Federal reserve is shrinking it’s balance sheet, ignore interest rates for a moment and imagine money that was being printed, no longer being there anymore. The shock hasn’t hit the world yet, but it’s on its way and I personally suspect it will hit around 2021 during Donald Trumps second presidency where he’ll have to renegotiate the U.S national debt. The U.S Federal Reserve can go backward and lower interest rates, but the moment that happens, understand reader that it will be an indication that near zero percent interest rates will be the new normal, it will be a sign to the markets that America has lost control, that it’s now too scared to tell it’s citizens the truth, that Empire America is officially on the decline.

This is why it’s my belief that Trump’s presidency will be defined how he renegotiates U.S national debt, which to me makes him a historic figure in world history. As far as I’m concerned I personally believe that Fed Chair Powell has positioned himself to avoid going negative interest rates. I’m not sure if what I wrote above appeals to him, but my personal investments will be reflective of what I expect to happen, which is a renegotiation of the U.S debt. Because I doubt the world, I doubt the U.S public is prepared to relinquish it’s price controls. Because of America’s lack of knowledge about price controls, there’s really no mechanism in place to truly allow the American market to deflate, which again is why renegotiation of the debt is America’s only way out.

Personally, I don’t see any President in the future having the wherewithal to renegotiate America’s debts with its creditors, so I’m of the view that America and the world better take advantage of Donald Trump while he’s still around. Donald Trump if people remember had to renegotiate a billion dollar debt when his Casino ventures went sour, it’s unlikely that America will be able to find another President with this type of economic savvy. Bernie Sanders is an economic moron, but there’s a chance that he could beat Donald Trump in the upcoming election and a Bernie Sanders presidency will equate to a much tougher road for not only America but for the entire planet as Bernie Sanders has every intention on growing America’s dependency on the government.

Being that Bitcoin revolution has already happened, under a Bernie Sanders presidency it’s very likely that the U.S as a reserve currency might only exist in name alone. Which of course, will lead to more countries defaulting on their U.S denominated debts. Of course, America won’t go without a fight, but you’re starting to see how a changing of the guard would start to brew. Donald Trump provides that opportunity to make some U.S debts simply disappear, which is good for everyone, sure some will suffer, a lot of people who own bad, non-income producing assets will suffer, but unless the word is ready for a free market economy, which I know they’re not, this is the best option going forward. So people of the world, be warned the coming crash in my prediction should happen during Trump’s second term in office. If the Democrats manage to win the 2020 election, the world will be in a more severe economic position, because it’s unlikely that a modern Democrat president will have any idea of how to solve this economy.

Interesting times ahead.