The main act hasn’t started yet

The main act begins when Trump goes to war with Jerome to turn the money printer on.

It should be pretty clear by now that this time around, Trump really wants to push the limits of what he can get away with. That means trade war with everybody, crash the markets, pick winners and losers, and then stimulate out of it. This isn’t even wild speculation, he’s practically been saying it out loud that this is the plan.

I’m not saying it’s a good plan, or that I think it will work, but it is where we’re at. Strong arming the Fed is the biggest taboo that he’s yet to cross, and it will be entirely necessary to dig himself out of this hole.

Even if he does make a deal with key trading partners the typical Reddit doomers aren’t wrong, serious damage has been done and it will take something big to reverse course. Something that Jerome is almost certainly not going to want to do.

I have no predictions in this post other than the fact that we will not know wtf is going to happen until the Jerome vs. Trump main event.