Donald Trump's 'mad economic policies risk world crisis', says ex-Bank of England adviser
Singapore
Posted on :- 30 Nov 2017
It is thus important to watch out for Trump's "Boom and Bust" budget, fiscal policies (or his "Economic Yo-Yo" policies) - that artificially inflate economic growth (causing a spiking "Boom" for immediate gratification to his voters --- but will cause a sharp correction in the near term causing a sharp downturn correction - a "Bust" --- that will cause US recession --- and have the impact of pulling down the World Economy --- triggering a World Recession --- like in the past.
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Ricky Lim · Singapore
Thus Trump enticing US Congress that has just passed his "Boom and Bust or Yo-Yo" budget policies - must be defeated in the Senate --- and look like it is on the verge of being defeated.
US Senate must stop the irresponsible fiscal budget and pass a responsible budget - for the sake of US and the World that has tight integration with US.
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Ricky Lim ·
Singapore
Trump "Boom and Bust” budget that will trigger medium term US recession and World recession defeated.
Democrat leaders refuse talk with Trump and White House but instead negotiate directly with Republican leaders.
Live demo of how social media can shape 1 national event and 1 world event and transform tche world virtually.
人法地。地法天。天法道。道法自然。
宇宙万法唯心造。善果因缘生。恶果因缘灭。
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Ricky Lim · Singapore
Ricky Lim ·
Singapore
Ronald Reagan economic policies - start the accumulation of massive debt for US.
"Reagan has tripled the Gross Federal Debt, from $900 billion to $2.7 trillion."
As of July 31 2017, the federal government’s total debt stands at $19.845 trillion. The nation’s debt is now bigger than its gross domestic product, which was an estimated $19.23 trillion.
Net interest payments on the debt are estimated to total $276.2 billion this fiscal year.
This is known as the "Boom and Bust" fiscal policies and financial policies - to reap immediate gratification to please the voters by "inflating economic growth" - but bring economic bust a few years down the road.
The world has experience cyclic "boom and bust" - because of such policies.
Now Trump want to emulate this irresponsible policies - and you say this is good.
Clinton and Obmama --- are the one that have implemented prudent and pragmatic economic policies - not Trump.
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Ricky Lim ·
Singapore
Ricky Lim ·
Singapore
Is Trump creating conditions for US to experience another Lehman Brothers collapse in the US financial sector?
The World financial system must be careful in investing in funds coming out from US - or else get caught in the Lehman Brothers 2 saga.
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Ricky Lim ·
Singapore
Trump drastic cuts in taxes, and boosting rampant spendings - is creating a ballooning fiscal deficit --- and increasing debts for US - and its future generation will have a hard time servicing the debt.
Together with this banking regulation - Trump is creating a condition for financial crisis or meltdown of the past.
Trump don't seems to care about the future - and bend on immeditate gratification.
World Economy and finacial institutions must be careful and watchful of what will come out from Trump financial and fiscal policies --- and not let it drag down in a domino effect of the past.
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Ricky Lim ·
Singapore
Trump don't seems to learn from the lesson of the past - or rather he is indifferent - because it will not affect him now.
The problem will surface later - where he may not even be around - and he couldn't care less.
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Ricky Lim ·
Singapore
In the past, financial crisis one after another is trigger by such policies - and has recently been ratified and regulation put in place - to prevent such cyclic eruption of financial crisis - after a few years - when it bust after boom.
Now Trump want ot reintroduce this "boom and bust" policies again - and stir the World financial system.
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ricky l
ricky l 2 seconds ago
Wonder how can a Country sustain trillion dollars of debt and need to service hundred and billions dollars of debt interest?
Will the Country even able to repay the debt?
Wonder by deregulating the banking sector, will banks and financial institutions again resort to risky investment and put all the investors and depositors money into big risk of default and run-on bank again.
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Ricky Lim ·
Singapore
Trump obviously have forgotten or try to forget the lessons learn from US past finanical crisis :-
(1) US taxpayers money of hundred and hundred billions of dollars are used to prop up US banks and finanical institutions like BOA, JP Morgan, Citibank, AIA, etc - when financial crisis hit from its sub-prime investments in toxic assets. ----- Now Trump want to dismantle the banking regulation - to protect its financial industries.
(2) US Treasury have to borrow trillions of dollars by selling bonds to China, Japan, Saudi - to fund its massive budget deficit. --- Now Trump want to cut its tax in huge percentage, boost its spendings and balloon its debt and widen its budget deficit.
(3) US Treasury have to pump prime its Economy ---- by printing US dollars to repay its debt. ----- Now Trump think that he can do this again if US Economy go into "cyclic boom and bust" cycle --- with Trump risky policies - for immediate gratification but no regards for the future US generations.
--- Can the World not be careful and watchful on what Trump try to do --- and trigger a domino effect on the World financial system in the near future?
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Ricky Lim ·
Singapore
Analyst have computed that if Trump implement all his economic policies including his wall of America - it will add another $5 trillion debt to the $19.845 trillion in Trump short term in office.
And you say that Trump policies is damn good - or damn goon?
Wait till his children, grandchildren and descendants pay the massive debt accumulated by him for US.
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Ricky Lim · Singapore
Greece have to bite the bullet, go through extreme austerity -- to pay back its huge debt and emerge from near bankruptcy.
US with such unprecedented massive debt --- can do better?
And you now say what Trump is doing is "damn good"?
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Ricky Lim · Singapore
Ricky Lim ·
Singapore
See this to learn a good lesson - about a good fundamental economic principles :-
Greece blows EU-IMF bailout targets away with strong budget performance
Reuters
By Lefteris Papadimas and George Georgiopoulos
ReutersApril 21, 2017
ricky l 10 seconds ago
The prudent fiscal budget - to ensure a balance budget - that have led to correction of the debt problem with belt tightening measures and a few years of pain --- maybe the correct move.
For now on, Greece must be prudent in ensuring sustainable fiscal policy and growth generation policy that are sustainable.
ricky l
Reply 00
ricky l 29 seconds ago
Posted on :-
Feb 1, 2015 9:08 PM
Ricky Lim · Singapore
There are few things need to be put right :-
(1) Economic fundamental must be put right first - and thereafter create employment. If economic fundamental is not on sound footing - all patch work will just be a temporary patch and does not build a strong foundation for economic growth. Right economic fundamental - refer to right fiscal policies, right monetary policies, right investment policies, right balance of payment etc.
(2) Corruption must be eliminated - to have sound financial system
(3) Debt must be honored - and if have problem paying back - should restructured the debt for longer term repayment. Otherwise, no one will provide further loan if debt can be dishonoured.
(4) Can consider pledging something of value to creditors - like carve out a piece of land as collateral to creditor for say 100 year for creditors to invest in - until loan is repaid or to get further loan - until the country has successfully repay all the debt, get the economic fundamental in place and create sufficient employment for its citizen.
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ricky l00
ricky l 9 seconds ago
Critics in the last few years criticise the above suggestions - has caused undue miseries to Greece and kill Greece economic growth and kill job creation.
Now the above suggestions turned out to be the right things to do.
What is right in the micro-level - also means that it is right for the macro-level.
Prudent fiscal policies with the objectives to create growth and job creation is the right way to go.
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ricky l00
ricky l 29 seconds ago
Rampant Spending tommorow's money and leave the burden to future generations and descendants to pick up the bits = are wrong.
Rampant Spending based on big borrowing, heavy debts (especially external debts) = are wrong.
Rampant Spending with no objective of investing into the future = are wrong.
Rampant Spending based on over-generous welfare benefits that are not sustainable and do not encourage working = are wrong.
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ricky l
ricky l 9 seconds ago
Well done Greece !
You have make it !
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Donald Trump's 'mad economic policies risk world crisis', says ex-Bank of England adviser
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A former Bank of England economist has warned Donald Trump’s “mad policies” risk sending the US into recession, bringing the global economy down with it.
Paul Fisher said he feared the US president’s low tax-high spending agenda will see the US economy overheat.
“It is economic madness to think that this is the time to do a fiscal expansion in the US,” he said. “The economy [will] be in a complete mess” in around five years’ time, he predicted.
Fisher said the president’s $1.5 trillion stimulus package is storing up problems for later.
By the time the next presidential election comes along in a two years, the benefits from that huge investment will be being felt.
However, warned Fisher, the fallout will most surely follow.
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“I can see why Trump might do it – by the time the next US election comes around you will have had the benefits but you won’t have had the costs,” he said.
“It is the old stop-go cycle we had in Western economies for years and years.”
He said Trump’s policies would almost inevitably see inflation rise, hitting the poorest in America the hardest. A recession could soon follow, he added.
Fisher spent 26 years at the Bank of England, five years of them sitting on the Monetary Policy Committee – the group of economists and advisers that set the UK interest rate.
A central plank of Trump’s presidency is making “America great again” by putting domestic growth at the top of the agenda.
His confrontational and protectionist style appeals his core voters as he seeks to deliver on campaign promises of “jobs, jobs, jobs”.
That has seen him impose steel and aluminium tariffs on EU and Chinese producers as he declared that “trade wars are good”.
Both the European Union and China have threatened to retaliate in kind, raising the spectre of an all-out global trade war.
Fisher added: “One thing we know from thousands of years of history is that trade makes you rich, and anything that damages trade is probably not a good idea.”
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