sebastian_dangerfield |
07-25-2018 02:36 PM |
Re: We are all Slave now.
Quote:
Originally Posted by Tyrone Slothrop
(Post 516370)
So you do think he might piss off his base?
Tyler Cowen says he's setting up to blame the Fed. That seems right. He's going to need someone to blame.
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Higher rates tend to benefit older people whose investments are heavily weighted to fixed income. I think he could actually alienate older voters, a large part of his base, by pushing the Fed to cease raising.
OTOH, higher rates tamp down home prices, which will annoy a lot of boomers looking to cash out and downsize in retirement.
But, then, higher rates haven't seemed to affect home prices much so far...
I think he's dumb enough to try to blame the fed. But even if energy price increases are not his fault,* that's going to get hung around his neck.
The next recession will be awful for his base, and whoever's in office gets blamed by Joe Sixpack. I previously stated his base would forgive lost Chinese infrastructure investment because they wouldn't understand it's a bad thing (they'd largely think it good... "Keep out them Chinese!"). But a recession that results in even further job losses to lower skilled workers? Trump could lose a chunk of his base following that.
Inevitably, however, as the 2020 race takes shape, Trumpkins will be faced with a choice between him and a Democrat who will be presented as liberal and pro-free trade. They'll be forced to pick, and there, any base lost due to an intervening recession is likely to come home to Trumpistan once more.
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* Friends who follow oil have called me illiterate for suggesting the oil increase is in any way attributable to Trump's scuttling of the Iran deal, advising that oil is rising exactly as expected at this point in the expansion/recession cycle.
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