Could Trump’s crypto corruption and insane tax cuts sink global economy?

If you think Trump’s first 100 days was chaotic and damaging to the global economy, you ain’t seen nothing yet…

Trump is about to drop a multi-trillion bomb on the stock market

Donald Trump has branded it the “big beautiful bill” that will save millions of jobs and boost Americans’ take-home pay by up to US$5000 (NZ$8500) a year.

However, while recent focus has been on the market ructions caused by the trade war, the US president’s package of sweeping tax cuts will arguably be a bigger test of investors’ faith in the world’s biggest economy.

Congress remains deeply divided over not only the scale of tax cuts, but also how they will be funded. And bond investors are watching every twist and turn closely.

A cornerstone of the bill is a proposal to make permanent the Tax Cuts and Jobs Act (TCJA) that came into effect under the last Trump administration, which cut corporation tax from 35% to 21% and reduced the top rate of income tax from just under 40% to 37%. The cuts are due to expire at the end of the year.

But such a move will not come cheap. The independent Congressional Budget Office (CBO) estimates that a permanent extension of the TCJA could cost US$4.6 trillion over the next 10 years.

Even so, Trump has already unveiled plans to go further by proposing to eliminate taxes on tips, a popular policy that would benefit restaurant workers but at an additional cost of US$1.5 trillion, according to the Institute of International Finance (IIF).

This will no doubt pile further strain on America’s debt, which Scott Bessent, the US treasury secretary, admitted last week was on an “unsustainable” path.

We are approaching a Liz Truss moment with Trump when the Bond Markets could turn against his “big beautiful bill”.

Equally, his crypto corruption is almost beyond comprehension…

How Trump’s crypto empire is reshaping presidential norms

• Zachary Folkman, representing World Liberty Financial, proposed deals to crypto startups involving secret multimillion-dollar payments.
• World Liberty, largely owned by a Trump family entity, benefited from Trump’s actions, raising conflict concerns.
• Trump’s involvement in crypto has blurred lines between private enterprise and government policy, raising ethical issues.

…my fear is Trump will damage the global economy so much that he will get tricked into moving the US dollar to crypto and set the planet up for a black hole of collapse, a reality that the Democrats seem to be waking up to…

DEMOCRATS WOKE UP TO TRUMP’S CRYPTO GRIFT. WILL THEY STOP OTHER SCAMMERS?

“Many of the potential issues we see with the Trump family’s crypto practices are a feature — not a bug — of the crypto industry.”

…the reality is that we have had but a taste of then chaos Trump excels in and hopes that somehow the global economy will continue to grow under such a dangerously unstable Presidency is vacant optimism rather than clear eyed assessment.

Trump’s crypto corruption and insane tax cuts could easily sink global economy, something we are still not factoring in.

 

 

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