Inflection Point

Posted tonight by President Trump:

"Because Jay Powell and the Fed failed to stop
the problem they created with Inflation, I will
do it by unleashing American Energy production,
slashing Regulation, rebalancing International
Trade, and reigniting American Manufacturing,
but I will do much more than stopping Inflation,
I will make our Country financially, and otherwise,
powerful again! The Fed has done a terrible job
on Bank Regulation. Treasury is going to lead
the effort to cut unnecessary Regulation, and
will unleash lending for all American people
and businesses. If the Fed had spent less time
on DEI, gender ideology, “green” energy, and fake
climate change, Inflation would never have been
a problem. Instead, we suffered from the worst
Inflation in the History of our Country!"

Notice what I highlighted? "Treasury will unleash lending".

Refer to our Credit Cycle (Kondratieff wave) diagram. The downcycle resolves with debt default and economic growth greater than interest rates which allows debtors to become solvent and spend again.

Trump can accelerate the inflection by issuing low interest Treasury loans. Replacing an existing 7-8% loan with a 3-4% Treasury loan increases the borrower's cashflow, which increases spending, savings rate and debt paydown.

My 2017 DEFCON submission had a few slides about all this and ironically, Hitler rebuilt Germany's post-depression economy in six years using similar methods (see my 2017 DEFCON slides below). So the ignorant Lefties shrieking "HITLER!" will be half right.