Wednesday, November 9, 2016

What Does the US Election Say?

Just a short followup post now that we have the results of the 2016 US election. These results are quite consistent with what I have seen over the past couple of years doing research for blog articles here. The only question was whether the discontent that was obvious in the general public was widespread enough to elect a candidate like Donald Trump running on a "Drain the Swamp" platform. 

This result also adds on to the Brexit vote in the UK earlier this year and to the clear movement globally to express discontent with what is perceived by many as a ruling class that has little concern for the average person. 

The question now is where do things go from here? Does this mean that a new major financial crisis is more or less likely? What would the US position be now on things like US Fed policies, the status of the US dollar, and what role should be played by institution like the IMF?

Jim Rickards (who accurately predicted this election result when almost no one else did) believes that the election of Donald Trump will actually speed up the process he has predicted. For the first time in quite a while we will have the potential to unlock gridlock politically in the US. Donald Trump is promising a huge infrastructure program which many feel is designed to try and get the US moving away from the deflationary trend it has been in. There is nothing in these results that suggests the US debt will be going down any time soon. Donald Trump himself has predicted we will endure a major financial crisis (even if he were elected). So, we will continue to stand watch here and see what actually does happen.

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