Kim Jon Un is ready to rumble, but the president doesn’t think the young manic leader will start firing missiles that could reach the shores of America. Trump told the press Kim might send him a beautiful vase, instead.
China wants Mr. Trump to ease some North Korean sanctions. Chinese leaders met with Japan and South Korea and all three countries decided to help negotiate sanction relief if Kim agrees to denuke at some point in the future. Mr. Trump threatened Kim with force if he pulls one of his missile-firing moves. But Kim knows China has his back just like they did during the Korean War.
Wall Street economists think the Feds balance sheet expansion is a lame project, and it could be one ingredient that brings the U.S. economy to its knees in 2020. Plus, the combined GDP growth of the U.S., Japan, and Europe increased by 5.3 trillion from 2008 to 2018. The central banks in those countries expanded their balance sheets by $10 trillion during the same period. The difference between those two numbers or $4.7 trillion is the liquidity injections those three central banks used to reinforce asset markets.
The U.S. equity market has a lot of hot air in its DNA. Several economists believe central banks around the world don’t have enough cushion in their economic plans to avert another financial meltdown if the trade war continues and Brexit turns into a no-deal exit by the United Kingdom. The Feds continue to keep the repo market flush in cash by buying large amounts of treasury bonds each month. That indicates the economy is not as great as Mr. Trump claims.
Trump’s GDP growth dropped below two percent in the third quarter. Mr. Trump told the Commerce Department to change the growth number to 2.1 percent. Mr. Powell told the press economic growth will be two percent in 2020, but several hedge fund managers think economic growth could drop below one percent by the end of 2020 unless the trade war with China comes to an end.
Mr. Trump continues to threaten global GDP growth by spreading his spy conspiracy theory around the world. Trump told members of NATO to blackball Huawei because the company places spyware in their apps. But the U.K. and other countries know bad-mouthing Huawei is another ploy to disrupt China’s 5G platform.
The U.K. and other European countries continue to move forward with plans to use Huawei’s 5G technology since Trump has no proof Huawei spies for the Chinese government.