The International Monetary Fund’s latest economic report didn’t surprise most hedge fund managers. Global economic growth has tariff and Brexit mud in its DNA. The Eurozone plays tag with a recession, and China keeps injecting cash into its faltering economy. Economic growth in China should stay in the 5.9 to 6.0 percent range in 2020, and U.S. GDP growth should stay in the 1.9 to 2.0 percent range.
Brexit plays a role in the eroding global economy. Low unemployment and inflation are other factors. Low-interest rates could backfire if banks need to stimulate the U.S. economy in 2020. Several Fed members think the best way to stimulate the economy is to settle Trump’s trade disputes.
The Federal Reserve continues to inject cash into the repo market to keep bank-to-bank interest rates manageable. That financial move indicates the central bank has a financial fever. But Jerome Powell claims the U.S. economy is in good health. Mr. Powell knows Trump’s fiscal policy plan is a disaster. The budget deficit grows every time Trump swings a golf club.
The Trumpster spent a good part of 2019 playing golf while his henchman ran around the world tariff-threatening countries. Mr. Trump’s negotiating style is bullying 101. Mr. Trump applies tariff and sanction pressure to fuel his Narcissistic Personality Disorder.
Rudy Giuliani claims he’ll bring his Russian-backed Ukraine dog and pony show to the impeachment trial if Pelosi gets McConnell to conduct a fair trial. Lindsey Graham told the Rudster he could show his latest video to his Senate committee, but he has to take all the Russian propaganda out of it. Rudy told the press he’s still working on the new video. But he’s available to give summations, lectures, and even try the case if the Republicans start talking to him again. Most Republicans know Rudy is a few legal steps away from wearing an orange jumpsuit.
Iran’s military commander told the Trumpster his threats don’t scare Iran’s Revolutionary Guards. The commander told the press if the Trumpster wants to missile-rumble, he’s up for it, but Netanyahu and the Saudis may not like it.
The Chinese let Boris Johnson know he needs to stop listening to Trump when it comes to Huawei’s 5G platform. India and Germany plan to use Huawei’s 5G technology. And more than 30 other countries will too. Boris likes Trump’s mobster moves, and he needs a trade deal. But if China cut ties with the U.K.’s stock market like they said they would, Boris might throw the Trumpster’s spying claim to the curb.
