If Republican nominee and real estate billionaire mogul Donald Trump pulls out an impossible victory against Hillary Clinton in November then prepare yourself for a global recession. This is the latest warning from Citigroup.
The financial institution believes that markets would enter into chaos and the global economy would collapse because of policy uncertainty.
Here is what Citi Chief Economist Willem Buiter opines (courtesy of Bloomberg):
“A Trump victory in particular could prolong and perhaps exacerbate policy uncertainty and deliver a shock (though perhaps short-lived) to financial markets. Tightening financial conditions and further rises in uncertainty could trigger a significant slowdown in U.S., but also global growth.”
According to the team at Citi, a Trump presidency could decrease global gross domestic product (GDP) growth by 0.8 percentage points. This would push the GDP growth rate to below the two percent global benchmark, Citi projects.
Although Buiter does warn of financial consequences if Clinton becomes president, the Citi team is ultimately pulling for the former Secretary of State.
“The elections could be followed by a major fiscal boost, perhaps as a deal is struck to increase infrastructure spending while allowing companies to repatriate foreign profits at a discounted rate (under a Clinton or Trump administration) or due to sizable tax cuts (more likely under Trump),” the economist writes.
Indeed, Trump and Clinton are both terrible options in the 2016 elections. But we have to remember who Buiter is. This is the same economist who suggested that it’s time to abolish cash, tax currency and switch to electronic payment systems (SEE: Citi economist loses his mind – proposes abolishing cash, taxing currency).
A recession is going to happen sooner or later. But it won’t be because of Trump and some of his inane policies. And it won’t be because of Crooked Hillary, either. It will be because of the Federal Reserve-induced boom-and-bust cycle as it always is.
AS Always, the Globalist are telegraphing their punches. They will manipulate the entire economic sysytem(s) to fit their purposes of total control over the “little People”; you know, their slaves.
By being prepared to weather out the storm they are brewing, the People can create a financial system that the Globalist can not counter. That is IF the People will participate.
How much did they pay her?