Current World Daily
Love him or hate him, Donald Trump continues to tell the truth and separates himself from every other politician.
Trump's statements:
"I think we’re sitting on an economic bubble. A
financial bubble... We’re not at 5 percent unemployment. We’re at a number
that’s probably into the 20s if you look at the real number. That was a number
that was devised, statistically devised to make politicians – and in particular
presidents – look good. And I wouldn’t be getting the kind of massive crowds
that I’m getting if the number was a real number."
"I’m talking about a bubble where you go into a very
massive recession. Hopefully not worse than that, but a very massive recession.
Look, we have money that’s so cheap right now. And if I want to borrow money, I
can borrow all the money I want. But I’m rich... If somebody is a great,
wonderful person, going to employ lots of people, a really talented businessperson,
wants to borrow money, but they’re not rich? They have no chance...
Is it a good time to invest now? "Oh, I think it’s a
terrible time right now... because the dollar's so strong... You have – think
of it – you have cheap money that nobody can get unless you’re rich. You have
the regulators are running the banks. Not the guys that are being paid $50
million a year to run the banks. I mean, when you look at many of your friends
that are running banks that are being paid $40 and $50 million, yeah, they’re
not running the banks. The regulators are running the banks. You have a
situation where you have an inflated stock market. It started to deflate, but
then it went back up again. Usually that’s a bad sign. That’s a sign of things
to come."
"Part of the reason it’s precarious is because we are
being ripped so badly by other countries. We are being ripped so badly by
China. It just never ends. Nobody’s ever going to stop it. And the reason
they’re not going to stop it is one of two. They’re either living in a world of
the make-believe, or they’re totally controlled by their lobbyists and their
special interests. Meaning people that want it to continue. Because what China,
what Mexico, what Japan – I don’t want to name too many countries, because I
actually do business in a lot of these countries – but what these countries are
doing to us is unbelievable. They are draining our jobs. They are draining our
money."
"I can fix it. I can fix it pretty quickly...I would do
a tax cut. You have to do a tax cut. Because we’re the highest-taxed nation in
the world. But I would start...I would immediately start renegotiating our
trade deals with Mexico, China, Japan and all of these countries that are just
absolutely destroying us. "
This chart below comes from Jesse Felder, and he mentions that "corporate earnings are one of the most popular ways to value equities thus the sustainability of record-high profit margins should be an issue of great concern to investors. If profit margins revert to historical averages, earnings-based valuation measures investors are using to justify investment in equities today could quickly go against them making stocks appear much more expensive than they do currently. And this process may now be underway."
Also, take look at the following chart from Zero Hedge. This insanity shows how stock prices and corporate earnings can no longer stay disassociated from reality forever.
Keep in mind, Trump isn't fear mongering. When Donald Trump mentions we are in “a financial bubble” and “it’s a terrible time right now” to be investing in stocks, we should all listen.
Take a look at this information from Zero Hedge.
Trump's most interesting comment had nothing to do with economics - it was his admission that everyone close to him — family, friends, Republican leaders — have been urging him to tone down his attacks and reach out to former rivals, both to reassure wary voters and to begin the difficult process of unifying a party in which many have sworn to never back him. Trump does not intend to take the advice. He said such overtures are "overrated." "I think the first thing I have to do is win," he said. "Winning solves a lot of problems. And I have two people left": his two remaining Republican rivals, Sen. Ted Cruz of Texas and Ohio Gov. John Kasich.
Bob Woodward summarizes his take of the Trump interview
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