Billionaire real estate mogul and 2016 presidential candidate Donald Trump has said some pretty outlandish things since announcing his candidacy for the White House. However, some of his remarks on the United States economy and the Federal Reserve are pretty good.
Trump, speaking in an interview with Bloomberg Television on Tuesday, conceded that as a businessman he likes a low interest rate policy, but a nation as a whole wouldn’t really benefit from this type of monetary policy perpetrated by the Federal Reserve.
Indeed, a businessman like Trump would adore and benefit from low interest rates because that means he could borrow money at a very cheap price. Low interest rates also means his mortgage debt payments would be a lot less. Considering that Trump is a billionaire because of his real estate holdings then we realize low interest rates benefit the top while hurting the rest of the country.
He goes further on Fed policy. Trump believes keep interest rates near zero for so long is producing a bubble that could very well pop soon.
“Right now, we have the low rates,” Trump said in the interview. “In terms of real estate, if I want to develop … from that standpoint I like low interest rates. From the country’s standpoint, I’m just not sure it’s a very good thing, because I really do believe we’re creating a bubble.”
When asked about his opinion of Fed Chair Janet Yellen, he referred to as “more of the same.” But when asked who he would nominate to succeed Yellen, he named Paul Volcker, who was at the helm of the U.S. central bank in the early 1980s. He slowed down money supply growth while raising interest rates in order to fight inflation.
“I thought he was a terrific guy in so many different ways, and he had a good pulse and he had a good – to me he had – he was doing what had to be done,” Trump said.
Trump’s portfolio of stocks has obviously gained a lot from Fed’s manipulative policy. Who knows what he really stands for? His interviews so far have been very entertaining and no nonsense, which is vastly different than the deceitful nature of the likes of Jeb Bush and Hillary Clinton.
Remember, Trump isn’t the crusader of freedom and justice. He’s just another crony who wants to lead government, not change it very much.
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