TRUMP MAY HAVE “PRICKED” THE GLOBAL BOND BUBBLE
Trump called during the campaign for a $1 trillion infrastructure package, $5 trillion in tax cuts, increases in military spending and the repeal ObamaCare, which could cost more than $350 billion over 10 years. At the same time, the president-elect has promised “not to touch” Social Security or make cuts to Medicare. The moment Trump was elected the markets immediately reacted to this potential massive fiscal injection. Bond values plummeted as yields spiked.
…related from Michael Campbell’s interview with Dr. Michael Berry:
The Fed is Throwing Up Its Hands
