Donald Trump is good for the markets, and good for the US Dollar. Donald Trump – is net positive for FX. The reason why, is very simple. Readers of Splitting Pennies would have come to this conclusion on their own. Love or hate Trump, he’s not a politician. Some say, he’s worse than a politician. But he’s not a career politician. The Dud-Fag act (The Dodd–Frank Wall Street Reform and Consumer Protection Act (Pub.L. 111–203, H.R. 4173; commonly referred to as Dud-Fag) put a choke hold on the budding FX market in USA. While the regulations stopped rampant fraud, they also extinguished legitimate FX businesses, leaving an FX black hole in USA. And so it’s no wonder that less than half of US listed public companies hedge their FX exposure. But what’s a few billion off the balance sheet of a public company to investors, it’s not even a ’rounding error.’ Checkout the latest disaster from PVH. Critics of Trump, they are both mostly establishment trash, and brainwashed TV watchers who will believe anything the MSM tells them. And Trump clearly, does not have the support of the mainstream establishment. Trump doesn’t know what is a Bilderberg meeting (probably now he does, but the point is that he didn’t spend the last 20 years attending these meetings).
Let’s address the trust fund baby issue. Trump was given substantial wealth by his father. But so were millions of other trust fund babies, and Trump’s 4 siblings. That’s right – Donald Trump is the fourth of five children. It was “The Donald” who took what his father had, and created an Empire. Many children of wealth in Trump’s generation, they didn’t do it. So this nonsense about how Trump inherited his wealth, it’s a very misguided and unintelligent attack. It’s very misleading. He did inherit wealth, but he works very hard, and took a dollar and turned it into ten, and in the process went bankrupt a few times. He has guts! And primarily, Trump was in one of the top most difficult businesses in America – Real Estate.
The problem with America, Inc. is not that it’s run like a business, it’s run like a bad business with an unlimited budget. The government isn’t responsible – and the better word to use, LIABLE – like in private business. There’s no gun to their head, like in the private sector. Trump can’t solve all these government problems, but having the leader of the executive branch being from the private sector, a self-made billionaire who understands the markets – it’s the only first step to even consider solving the problem of the collapsing US government. Without a Trump win, we’ll probably see USA breakup into regional countries as explained in this book “The Nine Nations of America”.
Trump can make America, Inc. profitable. He understands finance, he understands markets. On the record, he’s a terrible investor. His portfolio looks like Bono’s – the majority of investments he’s made in hedge funds and other alternative investments have been net losers. But that’s often what being a billionaire means – you do business with someone, and you buy 10,000 copies of their book. You invest in their Ostrich farm. Do you really believe that McDonalds is going to make Big Macs with Ostrich meat? Of course not. It’s just good business.
Trump understands the most critical aspect of Forex, as quoted:
These people are crazy, this is the United States government. First of all, you never have to default because you print the money. I hate to tell you, OK. So there never is a default.
Yes – that’s right. The Fed can print US Dollars and pay off the debt, in one moment. We’ve said this in articles – it’s the most important Forex fact that’s misinterpreted and misunderstood. Why does Donald Trump understand this – but no other candidate does? Because he never held a government position in his life. This qualifies him – more than anything else – to be President of what has become effectively the world’s largest corporation – The US Government, which exists as it does – in cooperation with the largest and most powerful bank in the world, the Federal Reserve Bank.
It takes someone like a Paul Volcker, a Richard Nixon – to really create markets. Donald Trump is that character. He understands what it means to be a leader. A leader is not someone who blah blah blah – a leader is someone who acts, and is liable for all the fallout. Sun Tzu says, good general make any decision quickly, bad general decide on which decision is better. Now, let’s not give the egomaniac any special praise. It was his business that made him who he is. It was necessary for him to survive in his business, to be like this, to have a strong ‘tank like’ character. Secondly, Trump has had a lot of business ‘busts’ – like Trump University. His track record is not squeaky clean. He’s had some shady business partners, which the media says are ‘mob ties.’ So what? Do we shut down the stock markets because criminals have stock accounts?
Trump is good for FX. Under Trump’s presidency, we could see the Fed raise rates substantially, which would cause the US Dollar to rise. We can see further deregulation of markets, which can see an explosion of FX and money returning to USA now hiding and waiting offshore in various jurisdictions. Once again, America could be the place where investors choose to setup shop and do business. Currently, Wall St. is not number one – like it was in the 90s. Now there’s London, Hong Kong, Singapore, Australia, and even little New Zealand competing. The reason for the growth of places like Singapore, London, and Sydney in the last 10 years, it’s been only due to one problem: the US Government has put a ‘closed for business’ sign on the door. Even US Citizens are renouncing their citizenship in record numbers. There’s an American diaspora – for those who can afford – Americans are leaving USA for foreign enclaves. And they are being replaced by unskilled illegals who don’t speak English. This is mostly caused by US government policy, and the dud-fag regulations, FATCA, the Patriot Act and its successors, and others. Trump can reverse that trend.
Personal Authors note & disclosure:
Personally, as a US Citizen, I don’t vote. The idea of voting is noble, but the practicality of the system we have in America now, voting is a complete fraud. Not voting, is also voting. By the way, the only real way to stop a system that doesn’t work – stop using it. The only reason any politician is able to wreak havoc with our system is because people support them, people vote. After being in Palm Beach County on the ground in 2000 and seeing the voter fraud, the chads, the people who voted for Gore but their voting receipt said ‘Thank you for voting for George Bush,’ and watching the machine descend on the blue haired residents – finally to recount the votes to see that Gore had more votes, only to be disallowed by Gore himself as President Pro Tempore of the Senate; after seeing all this ridiculous circus- and finally learning the Bush controlled company “Diebold” that makes the electronic voting machines… The idea of ‘voting’ is just offensive for me. By the way, something like 30% of Americans don’t vote. To contrast with Europe, when they have a referendum, they have 90% + turnouts. If it’s important referedum, they can have 99% voter turnout. Anyway, it’s in other circumstances unprofessional to use personal opinions, stories, or references in an article which should be objective and present the facts. But because Trump is involved in a political election, if this information wasn’t disclosed, then it would be attacked as being a pro-Trump plant. I have no involvement in politics AT ALL except insofar as understanding and analyzing Geo-politics involved in the Forex markets. Forex traders need to be geo political experts, often. When Trump first was here on the political scene, I didn’t think he’d have a chance to even get on the ballot. I said that if he’s on the ballot, I’d go vote for him, for the first time in my life. My father voted for Ross Perot, and I remember then the similar reasoning, which I still believe holds true. I’ve dealt with many high level government workers and bankers & HNWI for my Forex business, and I can see the differences in their thinking – so independently I have a good contrast/compare which has nothing to do with Trump. The point here is that Trump in the white house, it’s good for business, it’s a net positive for America, and it’s net positive for FX. It’s irrelevant, Trump’s personality quirks, manner of speaking, personal life, or other nuances. Yes, probably, there will be knee jerk reactions to change as there always is, for example if the Fed hikes rates the market will crash, but that’s a good thing – it’s just shaking out QE money, and putting the economy back on a ‘real’ track based on the real economy, not artifical QE.
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