EDITED CORRECTION: Much to my horror I noticed this afternoon that I had sent out the prior piece announcing my interview with Alasdair Macleod without it being copy edited. If you have listened to the interview, there is no need to listen again. This is simply a revision to wipe out some very embarrassing misspelled words.
There is a new excitement in America over a new government and one that promises to change things for the better both socially and economically. Alasdair Macleod would like nothing more than to see the American economy restored to its past greatness. But turning this economy back around with its $36 trillion debt load and debt/GDP ratio over 120% is akin to turning the Titanic around after it hit the iceberg.
But Trump has some extraordinarily talented people joining his government. Can Elon Musk and Vivek Ramaswamy actually cut $2 trillion from the U.S. economy?
What about a nation that habitually spends more than it produces? To what heights will interest rates have to rise to fetch sufficient savings to fund massive budget deficits if Elon and Vivek fail to make those gargantuan cuts that they are promising?
What about Trumps tariff policies? Can tariffs help restore prosperity to the U.S. by on-shoring manufacturing and mining in America?
Even if that is possible what would be the immediate impact on GDP when incomes and tax dollars are lost from fired government workers?
While reducing regulation would no doubt have a positive impact, will it be significant enough to produce a significant positive impact?
The BRICS countries led by Russia and China and countless more that seek to joining a non-dollar trading arrangement with them are clearly seeking to oversee a collapse of western economies and there is reason to believe they are succeeding. Can Trumps desire to end wars, make peace and trade with our adversaries is a nice idea. But will the military industrial complex be willing to forego profits from overthrowing governments and bombing non cooperative nations simply to enable millions of citizens around the globe live in peace and restored prosperity?
Unknown to most Americans and people living in Western countries, The Russian economy is doing exceptionally well despite paying a huge price in blood and treasury. How has that nation been able to run budget deficits and enjoy a low debt to GDP number of 20% compared to the U.S. 120% ratio. Is there something we might learn from that country’s economic success?
These and many more topics will be explored with Alistar Macleod on my next podcast scheduled to air at 12:00 noon New York time on Saturday December 14.
Please join me to learn Alasdair’s thoughts on those topics.
Best Wishes,
Jay Taylor
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