Method in the Madness?
Inauguration day and Donald Trump, who said he would be a dictator on the first day (not from the first day) is set to hit the ground running with a vast array of executive orders, with perhaps one of the most interesting ones being the creation of the External Revenue Service as a counterpoint to the Internal Revenue Service.
Designed to collect the tariffs Trump is threatening to impose on anyone and everyone, it suggests that while he knows that the tariffs will likely be passed on in higher domestic prices, he is more interested in the revenue contribution to the Budget deficit and is betting that the US bond market would rather have a little more inflation if it also means a lot less supply of Treasuries.
- The Donald appears to be looking at the US like a Private Equity Baron looks at a company that already has too much debt…. How can we extract more from our ‘customers’? How can we sweat our assets?
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