A long run with debt as the foundation of the economy may be coming to a jolting end. From el gato malo at boriquagato.substack.com:
buckle up, the news does not look great
as many longtime readers know (and some certainly disagree) i have never had much faith in the economic instincts of donald trump, especially when times get tough.
he had a decent thing going in his first administration but blew it on lockdowns and the “cash cannon economics” of PPP and stimmy. this seems to be his go-to play and it looks to me like he’s currently looking at going back to it.
this new raft of ideas is cause for meaningful concern
in essence, his economics have always been a weird mix of center-left populism and mercantilist luddite doctrine, but when he panics, he really seems to go off the deep end and my worry is that the deepening struggles and tensions of the parts of the US economy not in on the AI caper are surfacing all of donnie’s worst instincts.
i’m honestly not sure what to make of this new set of talking points. they seem disconnected from reality to the point of incomprehensibility.
it feels like panic to me.
