Monday, January 23, 2017

Trump Profits from Inflation

So Trump is going after foreign trade treaties.  OK, manufacture here in the US and retail prices will go up to defray the higher production costs.  OK, impose import taxes on goods made outside the US and that cost will be passed on, so retail prices go up.  Result?  Inflation.  Who benefits from inflation?  Certainly not the individual, rather the corporate world.  Inflation will fuel higher interest rates.   So who would benefit most from inflation?  Banks will benefit from higher interest rates and inflation will benefit a real estate (supposed) mogul.
In fact, Trump has already raised interest rates on FHA mortgages.  Who will benefit from that?  Certainly not the home owner.  And if wages don't rise, inflation will hurt the working person.  And,a after all, how will Trump get the unemployment rate below the current 4.7%?  As always, sincere thanks to President Obama!

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