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Tuesday, February 14, 2017

Fitch Warns Trump Administration Could Lead To Global Economic Disaster

Twice in one week.

Just days after ECB president Mario Draghi (and other Europeans) suggested that Trump's proposed deregulation has "sown the seeds of the next financial crisis", when he told the European Parliament that "the last thing we need at this point in time is the relaxation of regulation. The idea of repeating the conditions that were in place before the crisis is something that is very worrisome", clearly ignoring that one of the biggest timebombs facing the world is his own balance sheet...

... moments ago Trump was also preemptively cast as the scapegoat for the next global economic crash by none other than rating agency Fitch.

In a self-explanatory report titled "The Trump Administration Poses Risks to Global Sovereigns", Fitch is sounding the alarm on the potentially negative consequences of Trump's economic policies, even though none have been officially disclosed yet.

In the report Fitch warns that "the Trump Administration represents a risk to international economic conditions and global sovereign credit fundamentals" and cautions that because "US policy predictability has diminished, with established international communication channels and relationship norms being set aside", this raises the "prospect of sudden, unanticipated changes in US policies with potential global implications."

Before it unleashes its criticism, Fitch concedes that elements of President Trump's economic agenda "would be positive for growth, including the long-overdue boost to US infrastructure investment, the focus on reducing the regulatory burden and the possibility of tax cuts and reforms, assuming cuts don't lead to proportionate increases in the government deficit and debt. One interpretation of current events is that, after an early flurry of disruptive change to establish a fundamental reorientation of policy direction and intent, the Administration will settle in, embracing a consistent business- and trade-friendly framework that leverages these aspects of its economic programme, with favourable international spill-overs."

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4 comments:

Anonymous said...

Why should we care? As long as America is fine that is what matters, America and Americans first!

Anonymous said...

These Globalists will do ANYTHING to bring this President down...Ignore the Ignorant

Anonymous said...

Sounds like George Soros talking.

Anonymous said...

Funny how the stock market has sky rocketed under the Trump Administration. More left wing scare tactics that only the foolish will believe.