The U.S and Canada Are Not Interested in Austerity Measures: Private Banks Likely Will Not Bail Out The Government, Leaving The Central Banks and Politicians To Fix The Disaster The Created – May 5, 2022,
I still see this desire for easy answers, I still see a demand to paper over stupid regulatory laws like the political “climate change” agenda, I don’t see much of a demand to cut government spending by the people, instead what I notice is for people to want a return to the way things were under the Trump administration. Donald Trump didn’t cut spending, but what he did do was slice regulations.
The mistake Trump made was not allowing interest rates to climb, instead opting to blame Jerome Powell for his shortcomings. Now, for the average Trump supporter, they will argue that the media was at war with Trump and Trump was merely doing whatever he could to survive, fair enough! But what does that have to do with the economy?
Can we call a spade a spade please? let’s stop pretending that Joe Biden isn’t an idiot, can you do me that favor, please? Don’t give that he’s Joe Biden is on the decline nonsense either, because Joe Biden has been plagiarizing other people for decades, meaning that he was likely at best a very good con artist in his younger years. It’s hard for some people to accept, that there are people in this world who can B.S their way to the top of the food chain. I argue Biden did just that.
Europe has been filled with political idiots for a long time, I bring this up because, without the United States, the ENTIRE PLANET is likely going to return to the dark ages. There’s no economic growth in Europe, even during the best of times, and what this equates to is a lot of pressure on the United States to lead the globe ECONOMICALLY.
The current Prime Minister of Canada, who was first elected in at the end of 2015, benefited greatly from Donald Trump, who was elected President of the United States in 2016. Trump slicing regulations on the oil and gas sectors, benefited Canada greatly, Joe Biden, however, is left of Justin Trudeau and what this means for Canada, is rampant consumer price inflation.
The Canadian economy is very interesting because the cost of living in Canada was high long before Justin Trudeau became Prime minister and his policies have made the problem even worse. I don’t see an appetite for austerity measures in the United States or Canada, and what this means, to me from an investing standpoint is that the money debasement is here to stay for the foreseeable future.
Even if gas prices come down, we can’t ignore the other regulations that are forcing prices back up. As an example, you have to consider WAGES and labor costs, if the market gets used to gas prices being this high, the market HAS to pay wage earners more, now let’s imagine Donald Trump becomes President, how does a private-sector employer convince an employee that may have been working there for over 4 years to take a pay cut because gas prices have come down?
2 government price control laws I know are hard to change are minimum wage laws and rent controls. These laws are very important to most businesses, rental purposed housing is being stalled because having your earnings stifled is not appealing to an investor. Wage controls, are why most businesses outsource, to begin with, now with Donald Trump he has an America first agenda, how to square that round peg?
I’d say if Trump beats the Democrats in 2024, he’s going to have some serious challenges with the private sector. Trump when faced with the opportunity to stop financing corporations that struggled to make a profit, took the easier road and began barking at Jerome Powell to lower interest rates? I don’t see Trump altering his stance on interest rates if he’s once again made President and what this means is that Austerity measures might take a backseat, to more big government solutions.
Now, in Canada, Prime Minister hopeful Pierre Poilievre has some interesting campaign problems, but you never know with these people once they’re in power. After Justin Trudeau is regarded as the most corrupt and worst Prime Minister in Canadian history, this doesn’t equate to smooth sailings for the Conservative likely to be the next Prime Minister.
The Left Wingers aren’t going to roll over and die, they’re going to make the life of Pierre Poilievre difficult and if Pierre Poilievre does not get a majority, he’s going to have negotiate which puts him in a position in which he is forced to flip flop or deal with coalitions that challenge his authority. Now, again, I don’t see austerity measures in any of this, and this is one of the reasons why in Canada, it was the 1990s Liberals who began cutting government spending, not the Conservatives.
To date, the only way to shrink big government successfully in North America has been the Former Governor of Puerto Rico Luis Fortuño’s way. What Luis did was he got to cutting government spending as soon as he got into office, he also accepted that he wouldn’t be liked very much and was mentally prepared to lose. I’m sorry but I don’t see that type of character from Donald Trump or Pierre Poilievre, which means that if you’re investing, you should invest imagining that prices in certain industries CAN NOT back down again, for the foreseeable future and most government jobs that add zero value to the economy will be protected.
Interesting times ahead!