An Economic Plan That Makes Sense?

President-elect Donald J. Trump has a bold economic plan for the United States. Trump’s vision is among the most contentious of modern day politicians, because it promises sweeping changes to regulation. At the heart of the Trump economic plan is the drive to create an estimated 25 million jobs between 2017 and 2027.

Trump alludes that every percentage point increase in the Gross Domestic Product amounts to an additional 1.2 million jobs. But more importantly, his policies vis-a-vis the corporate sector are going to dramatically change the way Wall Street, Main Street and the global economy do business.

Trump's plan is to cut corporate taxation to 15% and to eliminate unnecessary layers of regulation to make it easy for American corporations to do business.

GDP growth objectives to boost employment prospects

Economic stimulus is at the heart of the multipronged approach that swept Trump to victory in a nationwide movement of change. The annual average GDP growth increase that Trump is targeting is 3.5%, and this could easily move towards the 4% growth objective.

Among the many concerns currently plaguing the US economy is a stagnating growth rate.

The LFPR (labour force participation rate) is at its lowest ebb since the early 1970s. Trump has broad appeal in rustbelt states including Michigan, Wisconsin, Ohio, Pennsylvania and the like.

He has promised to reignite flailing automobile manufacturing industries, energy industries such as oil, coal and natural gas, as well as America’s huge supplies of metals and mining’s products. It is this focus that managed to win him the presidency over Democratic rival Hillary R. Clinton.

Can President Trump Achieve Economic Independence?

During President Barack H Obama’s tenure, an additional 12 million Americans were put onto food stamps. This places a massive burden on society, and the key to solving these types of issues – in Trump’s opinion – is increasing employment opportunities, education and a policy of America First. According to the statistics, 45% of African-Americans under the age of six are poverty stricken, and student loan debt exceeds $1.3 trillion.

These are real concerns that are hampering economic growth and prosperity for the country. In contrast with Hillary R. Clinton’s policies, Trump wants to cut taxation and the burden on big business so that it can start to produce more, hire more and invest more in the US.

The Anti-Establishment Candidate

Trump will levy a 10% once-off tax on the foreign holdings of US companies if they are repatriated. This will encourage US innovation, enterprise and investment domestically.

Perhaps the most important tenets of Trump’s economic doctrine are his desire to make America great again via automobile manufacturing, steel production, the Keystone pipeline and complete energy independence from the Middle East.

Trump is against globalism in that it encourages US businesses to invest outside of the country. His approach is one which focuses internally to strengthen America from within.

To this end, he is determined to secure the borders, deport illegal criminal aliens and put Americans back to work. While this multipronged policy is perceived as highly offensive to the liberal left, it is a necessary evil. Trump has gone on record as saying that NAFTA is the worst agreement that was ever negotiated in the history of the United States.

He wants to renegotiate the terms of the treaty so that America benefits and not Mexico or Canada. As it stands, the 2 decades-old policy will likely require significant efforts to remodel, if at all. Ultra-left democrats like Elisabeth Warren have vowed to work with the President-elect in rebuilding the country.

Wall Street and Trump

Wall Street reacted strongly to Trump's surprise victory. As the underdog in a heavily unfavourable media environment, Trump stunned political pundits, pollsters and the global community by his shock victory.

Leading talking heads were calling for the collapse of Wall Street, a spike in the gold price and massive global uncertainty – none of that came to pass. In fact, quite the opposite is taking place.

Trump is seen as a major catalyst in fiscal expenditure in the US. He will move swiftly to rebuild infrastructure (roads, highways, schools, bridges, airports) and put Americans back to work. These promises are exactly the types of policy objectives that many Democrats have been pushing in Congress.

Budget cuts – often the purview of Republicans – remain in place, but Trump's big spending bills will require the GOP-led house to push them through. To what extent this is possible will depend on the nature of the relationship between majority leader Paul Ryan in the House, and President-elect Donald Trump.

Bank and Non-Bank Trading: Speculating on Markets in Trump Times

For Main Street, there are many things to look forward to with a Trump presidency. Fear and loathing aside, Trump is really all about the economy. Several sectors are going to benefit immeasurably from Trump’s renewed economic focus.

These include coal, iron ore, steel, biotechnology stocks, pharmaceutical companies, and general equities. Conventional investment opportunities include stocks, 10-year Treasury notes, bonds, CDs and cash on hand. There are also non-bank options available in the form of speculative trading on indices, equities, commodities and forex with regulated brokerages like Stern Options. What is particularly interesting about this period in our history is the inherent volatility in financial markets.

Currency trading (Forex trading) is highly sensitive to increased volatility. We now know that Trump brings that to the markets in ample measure. Fortunately, the US dollar index is providing a clear sign as to the direction of price movement in the markets. The USD has spiked since Wednesday, 9 November 2016 and the DXY is fast approaching the 100-point level.

While this is good for imports, it makes US exports relatively more expensive. Nonetheless, binary options traders can profit immeasurably from this type of knowledge. In much the same way, the GBP is also rallying on the back of news from the High Court that any moves on Article 50 of the Lisbon Treaty must pass through Parliament. The sterling is also a safe-haven currency and with Trump soon in office, the sterling is doubling down on its gains.