Jack Rasmus reviews the key economic events, US and global, in the run-up to the Trump inauguration: China President Xi warning of trade war with US, the European Central Bank’s continuation of its QE policy, the United Kingdom’s Prime Minister, May, signals a ‘hard Brexit’, Trump cabinet nominees tell Congress what they want to hear (and not what they intend to do), Indonesia slaps down Chase Bank and UUS bond rating agencies, US Banks announce accelerating profits and stock prices with much more to come, Janet Yellen, chair of the US Federal Reserve, warns Trump not to spend on infrastructure because US economy is ‘too hot’, the real heat globally rises with hottest climate on record in 2016, and various US elites ‘warn’ Trump about foreign policy shifts without their consent. Jack explains that Trump enters office with elites willing to tolerate him so long as he delivers quickly on massive tax cuts, business deregulation, and eliminating the costs to them in Obamacare and Dodd-Frank, but don’t dismantle NAFTA and China trade or mess with NATO. Rasmus predicts Trump will eventually be ‘brought to heel’ by the US economic elites, and a new Neoliberalism 2.0 will be launched. (next week: Trump’s inaugural address and what it means for US policy)
