In 1987 the Reagan administration began managing the securities markets. Since that time, to varying degrees politicians on both sides of the isle have supported programs to enhance asset prices. Both monetary and fiscal policy have been used since that time for that very purpose. There have been no exceptions. Easy money has had only one purpose and that is to further enrich politically powerful constituents and investors.
Beginning in 2006 efforts changed from simply enhancing stock prices to completely preventing any loss of value. In 2008 asset prices declined in the face of unprecedented preventative efforts.
From 2008 through the present, all government efforts have centered around saving the stock market and elevating asset prices and goosing profit margins. Although they have no idea how or why it has happened, the poor and middle class have been devastated financially by the process.
All increases in corporate profits and GDP are rooted in spending by the super wealthy who are the only group to benefit from the rigging process.
When the stock market declines, the economy will drop into a very serious depression which will make the Great Depression of the 30s look pale. Will Trump rig the stock market?
The stock market is already being rigged. A better question is, will Trump interrupt the process? I would guess not. Trump will do everything possible to continue goosing asset process at least until the second year of his presidency. The Trump tax cut and spending plans are very much a way of passing the rigging baton to congress and taking pressure off the very tired Federal Reserve.
It may not be possible. Reality can impose itself on the world at any time, without warning and without anyone’s permission. Trump’s personal case will be better served by accommodating Wall Street. That is what he will do.
The public is still clueless as to how these things work. In this case, Trump has nothing to do lose by continuing to funnel wealth and income to the upper 1%. People know they have been burned, but are still clueless as to the source of their suffering. Suffering does activate the thinking process but it can take a long time.
The truth is a hard sell. Fantasy Free Economics gains readers one at a time. Major search engines simply do not list blogs which disagree with their political agenda. As long as folks share the link to this blog and others speaking out against the grain, the truth will at least trickle into the public consciousness.
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