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How TRUMP's election will affect Australia's economy

Written on the 30 November 2016 by James Cagney

The Buskers are on every corner in the USA load and vocal like vendors at a fish market . Call it TRUMP MANIA because many believe that "The Don" is going to create miracles in the USA economy. Investors are flocking to Wall Street.  A few sharp investors are cashing in on short term gains. These smart  investors are mostly active in the market for 8 to 12 hours a day and they know when to buy and sell.

I must remind you what Warren Buffet the CEO of  Berkshire Hathaway said "Be fearful when others are greedy. Be greedy when others are fearful."  For more details about this crucial information click>>> BUFFET.  Warren Buffet is one of the most successful investment specialists on the planet right now so beware if you do not follow his advice.

It's the passive investor who is more at risk. Passive investors invest in managed funds, through their Superannuation Funds and stock brokers . Stock brokers make money when you buy and sell. Fund managers and Superannuation Funds are more medium to long term investors. However these are more like large ocean liners which cannot change direction as fast as markets do. I wrote an article about this comparing these funds to the Titanic (which was declared to be unsinkable). This is a must read to anyone who believes that they can live on their Superannuation in retirement. Click >>> TITANIC for this important information or you may become one of the drowing victims.

Whilst the Buskers in the USA are loud and vocal there is an uneasy quite in Europe and Asia. Britain is estimating a huge deficit because of BREXIT and looming recession. The Euro is plummeting against the US dollar and talk of a recession abounds throughout Europe. Most of Asia is relying on the Trans Pacific Partnership (TPP)  free trade agreement to pull their sluggish economies out of the doldrums. Without the USA in the TPP the free trade agreement impact is seriously hampered and many partner countries will slip into recession (BUST). To hear what the top economists are saying about the impact of the election of Donald Trump on global economies click >>> TRUMPED .

Italy has a major referendum on December 4, the results of which could mark the start of an Italian exit from the European Union. Listen to what global commentator and the senior editor of Economy & Markets Harry S. Dent says:

"Polls are telling us that this referendum for constitutional reform by Prime Minister Renzi is likely to fail. "NO" is likely to win the day.

Of course, the polls haven't exactly been accurate of late so we'll see. But have you noticed how these events have tended to favor the far right and exit policies rather than the moderate and unifying parties?

Renzi has vowed to resign if "NO" takes the day and that opens the way for the far-right party to take over and move towards removing Italy from the euro and/or Eurozone, à la Brexit and Trump. It's the only way Italy can devalue, default, rebalance, and have a chance of coming out of its debt crisis at the price of high short-term inflation, of course.

Right off the bat, they could default on their Target 2 loans, largely to Germany, of $344 billion. In total, the weaker Eurozone countries owe Germany $676 billion! So if Italy leaves the Eurozone, the impact would be way worse than anything we've seen or will see from Brexit." ...............and this is how quickly Europe can move into the BUST in the B-B-B cycle closer.

As for Australia with our small population of around  26 million we will simply follow suit and silently slip into the BUST in the BOOM-BUBBLE-BUST Cycle just like the Titanic slipped into the dark cold Atlantic. The BUST is an inevitable part on the B-B-B Cycle and there is very little we can do about it.

The Australian economy, the share market and the property market is more dependent on  "Demographic Trends" and "Spending Trends" than any other single factor including TRUMP, BREXIT and European debt; the Australian migration policy; the economic policies; infrastructure plans; population growth rate or what banks and property developers are doing or advocating.

The Demographic and Spending Trends is crucial to understanding and planning for the coming BUST which is about to hit global economies like a perfect storm. To read more about these trends click >>> TRENDS.

If you would like to protect your assets in the coming BUST contact james Cagney on +61 416 137 645 or click >>> HERE.

DISCLAIMER

This is not financial advice. You should not act solely on the basis of the material contained in this Property Update for your investment strategies. Changes in government and legislation occur frequently and without prior notice and financial markets are unpredictable.
Please note that the information herein is of a general nature only and is not intended as specific advice for any particular person or entity.

This information was written and compiled by James Cagney.  The opinions expressed herein do not necessarily represent the views and opinions of his associates including
Asset Finance Pty Ltd.


Author: James Cagney
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