How Trump could impact the NZ election within 5 weeks

ByMartyn Bradbury

The PREFU reminded us all just how thin the ice our so called rock star economy is performing on and the reality that any collapse externally is going to send us all tumbling over into a severe recession deserves consideration.

The American stock market is at the frothy peaks they are because the market believes Trump is going to be able to get  his tax reforms through. However, the reality of the failure of Obamacare reforms, his bizarre support of Nazi’s and daily Twitter meltdowns are starting to suggest this is a President unable to get anything done and once that truth outweighs the illusion of tax cuts, the market is going to correct sharply.

A shock wave from America would trigger a jump in risk, forcing up interest rates, destabilise an already unstable China and domestically expose just how shallow our wealth creation is.

Such an outcome would have been highly unlikely with any other previous President, but Trump’s haphazard lunacy could trigger a market correction which would damage our economy before the election.

 

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13 Comments

  1. Well I believe some or most of the metaphorical collapse can be contained with in (for example the big for banks, less on external loans) for one reason – banker bonuses are payed in shares.

    Oh and NZ energy share price edgier than an MJ Pepsi ad. So eat it shit heads.

  3. In America people voted for change, Trump was the only candidate offering change, that’s why he is President. The system does not want change and will do anything to discredit or defeat Trump ao they can have America back how it was. Run for and by the Multi Nationals

    1. Trump is promising change, but he’ll never deliver it.

      He’s just not interested in anything but his own glorification. No plan, no ideas, no follow through.

      Trump supporters must be the most gullible people on the planet.

    3. Margaret, Trump needs no “discrediting” to undo his Presidency. Everything he does he has done to himself.

      If he cannot take responsibility for his own utterances, then who will?

      The inability of the Right to take responsibility – when they demand it from the rest of us – is mindblowing hypocrisy.

  4. Yep,

    The banks are stretched as borrowers are becoming over-leveraged to a violin pitch with junk bonds and overpriced properties that the whole system will implode sooner than later coupled with the negative rate system they now have become addicted to again as we reach the second EMRON type explosion and this time no Quantitative Easing will save us all next time.

  5. It won’t matter if it all falls apart, Labour and National will see the banks right; I’d hate them to miss out on their usury bonuses.

      1. The ordinary people will be skinned. In the end even Obama rescued the banks and left the poor to eat cake. As for Kiwibank, both National and Labour have the track record to sell the family silver.

      2. Considering that Trump has appointed several Goldman Sachs operatives to his Cabinet, I think it’s obvious that Wall Street has a friend in the White House.

        President Donald Trump plans on adding another Goldman Sachs veteran to his administration, saying Tuesday that he will nominate James Donavan, the acting managing director of Goldman, as his deputy treasury secretary.

        Donavan would become the third major Goldman veteran to join the administration straight out of Wall Street. Former Goldman Chief Operating Officer Gary Cohn, who is now the director of the White House National Economic Council, and Dina Powell, who is now the White House’s senior counselor for economic initiatives, were on Goldman payroll when they accepted rolls in the Trump White House. Other Goldman alums include Treasury Secretary Steven Mnuchin and White House chief strategist Stephen Bannon.

        ref: http://www.salon.com/2017/03/16/the-wall-street-white-house-trump-hires-fifth-goldman-sachs-staffer-to-the-administration/

    2. ‘Bernard Hickey says the quiet removal of the guarantee for Kiwibank savers should remind all savers about the lack of a deposit guarantee and prompt regulators and the industry to run a public education campaign about NZ”s lack of a deposit guarantee’

      http://www.interest.co.nz/opinion/80951/bernard-hickey-says-quiet-removal-guarantee-kiwibank-savers-should-remind-all-savers

      ‘How safe are your deposits if a bank fails?’

      http://www.stuff.co.nz/business/opinion-analysis/78727017/How-safe-are-your-deposits-if-a-bank-fails

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