Saturday, August 24, 2019

WILL THE KANSAS CITY FED SABOTAGE THE PREZ TRUMP BULL MARKET?!?!?



Talk of trade deficits and yield curves is boring and doesn't really get to the heart of a deeper truth inherent in the recent kerfuffle over the global economy. Strangely, Kansas City plays a big part in the fundamental difference of world views that has US markets teetering on the brink of recession.

The basics: The Kansas City Fed leads dissent in taking direction from the White House. The resistance sparks outrage from Prez Trump which has, in turn, inspired a moment of pause and a serious market hit.

TKC won't pretend to understand macroeconomics but much smarter people who read this blog have helped to give us a fundamental view.

And so, the question before the most loyal readers among our blog community on this early Saturday evening:

IS THE KANSAS CITY FED TOO OLD FASHIONED AND STINGY TO KEEP UP WITH THE PREZ TRUMP BULL MARKET?!?!

There are good points on "many sides" of this issue but what's most interesting is that the mere mention of this debate has the potential to cost investors MILLIONS and demonstrates that the stock market isn't immune to the culture war or the "transformative" impact of Prez Trump's brash style. By that same token, the growing likelihood of recession and the Fed's power to tighten the money supply and slow down the economy presents a serious threat to the reputation of the Prez given how much he has touted his bull market run.

Check the links:

CNBC: The Fed didn’t need to cut rates in July, Kansas City Fed president says

Yahoo: Kansas City Fed President on economic uncertainty, Fed's next move

F/XBiz: US economy ‘doing well’ but these headwinds may undo it: Kansas City Fed President

Forbes: Trump’s Tweets Cost Investors Over $500 Billion

CNN: Trump asks if Federal Reserve bigger enemy than China

Fox News: Trump says 'I wouldn't stop him' if Fed chair Powell resigned

NBC: Trump increases tariffs on Chinese goods hours after slamming Fed chief

Developing . . .

25 comments:

Anonymous said...

Do not fear Tk. It's obvious that the president has an infinite supply of bull.

Argo said...

Trade war with China is here. Too bad.

Don't expect most of the readers to understand it until they get their credit card statement. Not going to be pretty for a public that's obsessed with low prices on everything from tennis shoes to computers.

Anonymous said...

^^^^ It's the economy stupid.

Nobody loves the president more than they love their bank account. Notice that so many of those rabid supporters are a lot quieter now.

Anonymous said...

Pay-to-play is the most cost-effective way to influence policy or evade consequences.

Anonymous said...

^^^^^ +100

Anonymous said...

It's hilarious how it was Obama's glorious economic boom until the millisecond there was a sign of slowing. ;)

Anonymous said...

^^^ true dat

Anonymous said...

MAGA, Trump 2020!!!

Anonymous said...

It's hilarious how it was Trump's glorious economic boom until the millisecond there was a sign of slowing. ;)

If you take credit for the boom, you gotta accept blame for the bust.

Anonymous said...

The big problem will come with the October T-Bond auction.
China and Russia have been the big buyers for the last decade, so if China stands back this round the US Government will have to do some fancy tapdancing to avoid de facto bankruptcy.

Anonymous said...

The Fed is not a government agency. Trump has no control over it. If rates go lower they the fed cant fix a recession. Lowering rates is their only tool. Trump is crazy, we cant buy Greenland, we are so deep in debt already, it would cost so much we would be bankrupt, its citizens would be taxed differently, they would have to become Americans, all real estate would have to be retitles, all their laws thrown out and replaced by our federal law, they would have to go on our social security etc - Trump has lost his mind.

Anonymous said...

Don't forget he slept with a porn star, without using a condom. Stormy Daniels. How can anyone respect him now? Even most criminals and drug addicts do not sleep with porn stars. AND HE WAS MARRIED AT THE TIME!

Anonymous said...

BABABAHAHAHAHAHAHAHHAHA^^^^^^^^^^

Anonymous said...

Many porn stars have herpes. If Trump slept with her. without a condom, he could have caught it. Along with other things. Aids is passed by having sex without condoms. Trumps wife could be at risk too. What was he thinking?

Anonymous said...

^^^ Thinking? Trump?
Don't forget we're talking about a 73 year old Man-Child with the morality of a horny sixteen year old and the self control and regard for others of a spoiled third grade bully.

His handlers can't even get him off his keyboard when he's showing obvious signs of chronic sleep deprivation. (Greenland? Really?)

Anonymous said...

Please, please attempt an original thought.

Anonymous said...

Why are you guys so obsessed with Trump's cock? Go to bed lol

Anonymous said...

Shudup, Billy @10:02/:38! Your cheating ass should not be pointing cigars, we, fingers! And, Hilly @10:16, you laughed at a 12 year old female victim that was raped by your nasty client.

Anonymous said...

the great Prez is playing the media and the brain dead democrat idiots like the chumps that they are , The assholes are playing with themselves and each other , The Trumpster is so far ahead of their mental disorder , MAGA AND KAGA IN A LANDSLIDE IN 2020 WITH EASE

Anonymous said...

^^^ and yet he will be blown out and leave as a total disgrace. Weird.

Anonymous said...

Trump has made himself a God, that all countries and government officials must obey. Otherwise he will punish them. Its all about retribution upon america's enemies. Its about punishment. Trump is to be obeyed 100%. He may sleep with anyone, buy other countries, do as he pleases. He is in charge. America was already great, but he shall make us even more powerful and greater. We shall rule the world and other countries shall bow down to the USA.

Anonymous said...

He is the self-anointed CHOSEN ONE.

Anonymous said...

We're not heading to a recession. The Russia hoax didn't work, calling everyone a racist Hitler didn't work, calling a Supreme Court Justice a rapist didn't work, so they're trying to bash the economy in hopes it fails, which it won't. One only needs to zoom out on the performance since January to see how well it's been doing. The haters haven't been right about a single thing and it's obvious they won't be right on this too

Retro ROCKER said...

Enjoy the Show THE Smart money was out of the market. And they shorted the market on the way down. And if you stay in your 401 k,will be 1,k,Watch the Rich and do what they do.

Anonymous said...

^^^You have been wrong about Trump's economy for over 3 years and yet you're still at it. TDS does that to a person.