Could Trump’s Big Beautiful Bill accidentally trigger a Liz Truss market meltdown?
Let’s be very clear. Trump’s BBB is an insane and brutal redistribution of money to the richest while fuelling a debt that could destabilise the global economy..
John Oliver on Trump’s ‘big beautiful bill’: ‘Death by a thousand cuts’
John Oliver has expressed deep concerns about Donald Trump’s “big beautiful bill” calling it dangerous and potentially deadly for many Americans.
On Last Week Tonight, the host joked that it sounded like a “lumberjack with an OnlyFans page” as it moves through Congress with only the “narrowest of margins”.
It passed by just a single vote and is now being rushed through the next round by Republicans eager to see it pass even though many have admitted that they haven’t even read all of it.
He said while it was lengthy and its contents unknown by many, the “broad contours are clear”, saying it demanded a “massive redistribution of wealth” which requires “cutting critical programs for the most vulnerable”.
The bill will lead to 60% of tax cuts going to the top 20% of households and will add trillions to the national debt.
One major area affected is healthcare, with estimates suggesting 4.2 million people will become uninsured by the changes.
It’s brutal, it’s evil, and it could sink the global economy.
The debt is so huge, Trump is risking a ‘Liz Truss’ moment where the market itself rebels against the debt.
Most trading done now is run by algorithms, once the system sees a looming crisis, they all pile in against the trade, that’s what made the Liz Truss meltdown so significant, the computer trading could see her neoliberal right wing extremist budget was going to destroy itself, and the market automatically responded.
The same danger looms for Trump.
The BBB is so spastically cruel and counter productive, the computer trading could turn savagely against Trump once the BBB is passed and the ramifications of adding 5 Trillion in debt is calculated by the computers.
Liz Truss hoped to pass extreme right wing neoliberal policy but the markets and the amplification of computer algorithms killed that.
Trump could trigger the exact same dynamics once this passes.
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US economy is going to contract.
I predict economic contraction in the US – almost identical to NZ over the last year – cut government spending and cut taxes and watch your economy slow down and stall. They aren’t even really getting a tax cut these are an extension of existing tax cuts so very little stimulatory impact offered.
Increasing consumption taxes – US consumers are going to pay more for consuming imported goods – the tariffs are equivalent to GST going up by 10 or 20%.
All combined there is going be less new money circulating in the US economy over the next few years and it is going to hurt ordinary Americans with higher unemployment and a weak economy.
Ahh but what a big, beautiful contraction!
What about invading America with a willing coalition to free these poor souls?
‘What about invading America with a willing coalition to free these poor souls?’
We can ally with Mexico, Canada and indigenous Americans to reclaim areas of the USA that once belonged to other nations.
‘What about invading America with a willing coalition to free these poor souls?’
Here is another idea.
Tell Russia to lay off Ukraine. Give Alaska back to them.
Well! This full on Buety, is going to fire off a M.A.G.A. WET DREAM, and those in the streets getting blodied will be M.A.G.A!s WET DREAM.
I can tell you what is going to cause a near unprecedented (maybe the Industrial Revolution was larger?) paradigm shift in the global workforce: AI. 50% of jobs will become irrelevant. I have never been happier to be a Primary Producer, which will be one of the last remaining “safe jobs”.
https://www.thestreet.com/automotive/ford-ceo-makes-shocking-ai-unemployment-claim
While Trump has declared bankruptcy 4 times it seems that only his creditors have suffered and it’s self evident that he’s stupid enough to think that he can run the country in the same manner. It looks like a very hard landing ahead for team Trump although it’s terrible to think of the damage to the rest of society that will also happen.
Just like ours has.
I don’t know if there will be a marketplace meltdown, but it will devalue the American dollar. A more pertinent question would be, “How will the libertarian and MAGA wings of the Republican party react to higher living costs?”.