We will get to wear it this year with Biden - he gets to enjoy the time bomb of the national debt, which I think is going to hit home probably before he takes office in January. Trumps little bang left for him.
There was no economic miracle with Trump. All he did was deregulate, cut taxes and spend like he had an Amex for the country. That is not genius thinking, it is insanity and a monkey could do that - Obama could have done it, Ted Cruz could have. It wasnt some amazing initiative that required skill. Just the insanity to do it.
I might point out Mitch and the GOP squad had a point about keeping a balanced budget - there is a reason why the Worlds Reserve Currency should NOT over print and SHOULD show some restraint. And there is a reason why many Democrats too often opposed too larger budgets.
But after the Fed tried to unwind the balance sheets last year the GOP truly gave up. And Covid accelerated and came along and held off what had to happen anyways - inflate. So congrats on higher wages - you'll need them because your groceries now cost a lot more.
The world will not want a reserve currency if the lender and the issuer can do what they want - which is effectively what happened when the Fed tried to unwind and could not - it was the first signal to the globe that the worlds reserve currency had problems and it could not unwind. Let that sink in - the Fed could NOT unwind meaning it can NEVER unwind.
What's the economic miracle of the 3rd quarter when you threw 2 Trillion at the economy? None. Thats ignorance and foolishness.
The world doesn't have the USD to blow through and now they are likely to force the Fed to unwind or kiss the USD as a valid currency and they will drop their holdings. They will have to because the USD is going to deflate making the worlds debt cheaper and their holdings worth less.
There is NOTHING Biden or Yellin are going to be able to do to stop that, so we all best buckle up as the only way to reduce the excess of USDs about is to inflate out of it on a global scale.
Its akin to a company going to a bank and borrowing far more than it could ever hope to pay back and then calling the increased spending an economic miracle - it isn't, its the eventual bankruptcy coming. While we can whine for years about the debt of the USA and say we could never have paid it back (probably true), the last 3 years has sent a message to the world that we dont care - but alas they do and someone has to pay.
Look out for it this year as we see the US Economy pay for it. Poor Biden is in for a shit show with no tickets for sale.