The Trump Effect: America ascending

Most of the world is noticing how Donald Trump is affecting global issues before he is even sworn into office. The event at Notre Dame, meetings at Mar-a-Lago, the president of Mexico stopped the caravan in her country – even Time magazine named Trump the “Person of the Year.”

So, other than the stuff that’s easy to see, how is Trump already affecting the world?

Typically, stock prices fall at the start of December as investors take capital gains and losses before the end of the year. The fact that stock prices are up 5% since the election is a real testimony to how investors feel about the election where Republicans won the White House, the Senate, the House and a majority of governors and state legislatures. They chanted “USA, USA, USA” as Trump rang the bell on Wall Street this week.

Democrats feared a wipeout if Biden remained as the candidate, so the party oligarchs replaced him with Harris without her ever winning any state primary elections in 2020 or 2024. Well, they got wiped out anyway. Why? Democrats, like the establishment media, underestimated the power of MAGA. MAGA is everywhere, from public meetings in Chicago to the streets of NYC (both in blue states).

CPI (Consumer Price Index) for November was 2.7%, while PPI (Producer Price Index) was 3%. A PPI that is higher than CPI signals that inflation will increase. But the Fed is set to lower interest rates and buy more treasury stocks anyway, to lower interest rates. Why? My observation is that the Fed expects inflation to decrease with higher oil/gas production and lower government spending by the Trump administration – something the Biden/Harris administration failed to do.

Interest rates for publicly traded corporate bonds are increasing even though the Fed is lowering interest rates. Why? Because investors are putting their money into stocks, so investors need higher interest rates on bonds to get them to buy them. Fed actions to lower interest rates on treasury bonds does nothing to lower interest rates on corporate bonds. But the actions by the Fed will probably lower mortgage interest rates and credit card rates, which will help drive a better economy, so investors are buying even more stocks. That will drive up stock prices. All good!

At the end of these next four years, Trump will have affected America for at least 13 years, since mid-2015. About the same as FDR did. Donald J. Trump is the most important figure in American politics for the last 75 years. And with Trump mentoring so many young brilliant leaders in his Cabinet and nominating so many judges, MAGA could live on for decades.

Expect these dozen things (a perfect dozen) to happen quickly after Trump, Vance and the new Cabinet take control:

1. Immediate action to stop illegal immigration and to deport risky illegal aliens.
2. More tariff actions against China and other adversaries.
3. Congressional actions to codify Trump tax reforms that are due to expire.
4. Return to a military that defends the USA without any woke, DEI constraints.
5. Purge of the DOJ, State Department and FBI of deep state operatives.
6. Reduced federal government spending and reductions to government regulations.
7. Oil/gas production increasing to new record levels with lower oil/gas prices.
8. End to the Ukraine war.
9. Complete destruction of Hamas in the Middle East.
10. Hobbling of Iran.
11. Removal of woke ideology from our public education system.
12. More Trump MAGA dancing.

It’s another great day in America!