Doug Casey on Trump’s Presidency So Far

President Trump pisses off all the right people, but Doug Casey doesn’t like the deficits. From Doug Casey at caseyresearch.com:

Justin: Doug, what do you think of Trump’s presidency so far? What’s he done well? Where’s he fallen short?

Doug: Let me start by saying that I’m very pleased that Trump was elected because, first and foremost, he’s not Hillary. In addition, he’s never been in political office. So he lacks some of the vices common to professional politicians. Even better, all members of the Deep State reflexively hate him.

That’s a good thing, because there’s some truth to the meme “the enemy of my enemy just might be my friend.”

I also like some of the things Trump’s done since he’s been in office—besides driving liberals and Deep Staters insane. He’s done some deregulating—not nearly enough, but he’s moved in the right direction. Of course, he did this not because he understands Austrian economics, but simply because he’s a businessman. He has some personal experience with the destructiveness of regulations.

Of course, he hasn’t done nearly enough yet. He’s just mowing the grass and trimming the hedges. He should be pulling these things out by their roots and sowing Agent Orange where they grew.

The same goes for taxes. His tax cut was helpful, but not drastic. And there hasn’t been a cut in spending. In fact he’s significantly increasing spending. So the tax cut is mainly cosmetic. The government will extract those resources from the economy, mainly by selling more debt.

Justin: And where has he fallen short or failed?

Doug: A number of ways, starting with running a trillion-dollar deficit. Where does he think that money’s going to come from? The Russians and the Chinese aren’t buying US debt anymore. Foreigners are looking to offload US paper.

Americans aren’t buying much, either. The only real alternative is to sell it to the Federal Reserve. Which is a real problem when the Federal Reserve is not only trying to deleverage, but has to refinance hundreds of billions of short-term paper coming due. Recall that almost all the $20 trillion of Treasury debt is very short term. Interest rates are going to rise, a lot. And so will the interest portion of the government deficit. Interest payments alone will be a trillion a year by the end of Trump’s second term—assuming he gets one.

To continue reading: Doug Casey on Trump’s Presidency So Far

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