The classic definition of insanity is doing the same thing over and over and expecting a different result. As such, we’ve long determined that central bankers aren’t working with a full deck. Their willingness to engage in quantitative easing, or QE for any fiscal issue reflects this adage perfectly, albeit negatively.
But the one source that we didn’t expect supporting this monetary policy was President Trump. Throughout the campaign trail, he blasted the Federal Reserve, specifically former Fed Chairwoman Janet Yellen. His accusation? The world’s most powerful central bank was playing fast and loose with the printing press.
I’m not sure if the then-real estate mogul used the term QE. However, it was clear to anyone with half a brain cell exactly what he was referencing. He further elucidated his point, mentioning unsustainably low benchmark-interest rates to artificially prop up the economy.
Combined with his strong America First message and his draconian stance on immigration, Trump’s touting of sound monetary policy attracted Ron Paul libertarians. Here was someone who was ticking off all the right political boxes.
Unfortunately, we found out recently that was all he was doing. The President, in a complete about-face, called on the Fed to lower interest rates and pump out more quantitative easing.
What?
Trump’s Call for More QE Makes Sense…in a Twisted Way
Here’s a man who so loves gold that he plasters it on everything he touches. Not only that, he once accepted gold bullion as a lease payment for one of his properties. If anyone understands sound monetary principles, it should be Trump.
Yet his double-backing on QE makes perfect sense. The President doesn’t give a rat’s behind about the economy, or the country, or you. That’s the myth that he sells, and startlingly, many people buy it. Instead, Trump is about numero uno, America First be damned.
And from his perspective, he’s not doing too well in the polls. If the Democrats elect a crazy leftist as their frontrunner, Trump stands a good chance of reelection. His concern, though, is the wildcard, someone that comes out swinging from out of nowhere. He should know: he benefitted from this very dynamic.
To cover all variables, the economy must remain robust. Nothing sways more voters than the wallet. If it’s a little light, people want change. However, if the cup overfilleth, people will want the gravy train to continue riding higher.
That’s the motivation behind QE forever. Working for a better future only applies if personal ambitions are satisfied first.