Trump Hints He Would Replace Janet Yellen

Tyler Durden's picture

Three weeks after angering the mainstream media with his apocryphal assessment that the US "Is Headed For A Massive Recession" and that "It's A Terrible Time To Invest In Stocks", Trump is likely set to make even more waves with an interview he gave to Fortune magazine, which will be released in its entirety later this week, in which Trump says that while he likes Janet Yellen’s low interest rates, he is not a big fan of Janet Yellen herself.

"I think she’s done a serviceable job," Trump tells Fortune. "I don’t want to comment on reappointment, but I would be more inclined to put other people in."

As he’s said in the past, Trump tells Fortune that he would “absolutely” support proposals that would take power away from the Fed, and allow Congress to audit the U.S. central bank’s decision making.

Curiously, while Trump is not a fan of Yellen herself, he does like zero rates, and is a fan of the Fed's monetary policy. "The best thing we have going for us is that interest rates are so low,” says Trump, comparing the U.S. to a homeowner refinancing their mortgage. "There are lots of good things that could be done that aren’t being done, amazingly."

Maybe that is the case of billionaire real-estate developers, but it is hardly the case of tens of millions of (mostly aged) Americans who until recently relied on interest income from their savings, and ever since the arrival of the New Normal have been forced to take a job during what otherwise would have been retirement years to make ends meet. That, or simply gamble in the stock market in hopes of striking it rich.

Trump added that if the Fed were to raise interest rates now it could be disastrous because the country would be forced to pay higher interest rates on our debt, and that would be very “scary” for the economy.

"People think the Fed should be raising interest rates,” says Trump. “If rates are 3% or 4% or whatever, you start adding that kind of number to an already reasonably crippled economy in terms of what we produce, that number is a very scary number.”

Odd, considering, that only a few weeks ago the same Trump was warning of big Fed-created bubbles, which are the direct result of the Fed's ultra loose, purposeful bubble-inflating policy.

It is also odd because when the Fed actually did hike rates last December, it led to a wholesale rush out of "risk on" assets such as stocks, and into Treasurys, pushing yields even lower. It's not just fund flows: by rising rates the Fed is effectively accelerating the inversion of the curve, thereby bringing closer the date when the US slides into recession and leaving markets with just a deflationary outcome, i.e., lower yields.

But Trump doesn’t seem to be focused on that. Instead, as Fortune writes, Trump says he would like to take advantage of lower interest rates in order to refinance the debt and spend more money to rebuild the military and the country’s infrastructure. Trump did acknowledge that he thought we need to reduce our debt, but it was one of a number of things he thinks we need to do.

"The problem with low interest rates is that it’s unfair that people who’ve saved every penny, paid off mortgages, and everything they were supposed to do and they were going to retire with their beautiful nest egg and now they’re getting one-eighth of 1%,” says Trump. “I think that’s unfair to those people."

Again, nothing about all those people who have saved all their lives in hopes of collecting at least some interest on their labor.

Finally,  in a notable reversion of his "Make America Debt-Free Again" plan, country debt free, Trump softened that stance during the Fortune interview.

"You could pay off a percentage of it, depending on how aggressive you want to be,” he says. “I’d rather not be all that aggressive. I’d rather not have debt but we’re stuck with it. If I had a choice of taking over debt free or having $19 trillion – which by the way is going up to $21 trillion very soon because of the omnibus budget, which is a disaster. If I had my choice I’ll take no debt every time."

Clearly, the only problem is that someone has to "take" that debt; and with the entire world now drowning in debt - including China which according to estimates is now approaching Japan's 400% total debt/GDP with a ratio close to 350%, there is simply no way out, without implementing one of the only three possible "solutions" - default, hyperinflation or war.

We wonder how long until Trump, or any other presidential candidate for that matter, admits as much.

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EarthShine's picture

With someone who doesn't choke on her own sick

Tom Servo's picture

With a different jew?  or maybe give a goy a shot at the job?

 

MillionDollarBonus_'s picture

This would be an absolute disaster for economy! People are already confused about where monetary policy is going - we need to stay consistent and provide a stable economic environment for businesses. A change of Fed chairman so soon after Yellen's appointment would be catastrophic for the markets. Trump doesn't think ahead when he makes decisions like this - he just blurts out whatever comes into his head. That's why he's so dangerous. The guy's a complete lunatic!

THE INEVITABILITY OF A CASHLESS SOCIETY

synergize's picture

Trump is an establishment man - I cant believe he's fooled so many people into thinking he's anti-establishment.  He made his wealth in the heart of the beast for God's sake - NYC!

BeaverCream's picture

Based on what evidence? The establishment on both sides hates this man.

The fact that he made a lot of money actually doing things isn't evidence that he's establishment.  He's had to work within the system to make money but sometimes it's easier to win if you play by the rules.  Sometimes smart people play by the rules until they have enough power to change them.

conraddobler's picture

Really?

I think they doth protest too much.

kliguy38's picture

Trump has no power and I don't think he's stupid either. He'll do what he's told

Taylor's picture
Taylor (not verified) kliguy38 Apr 20, 2016 9:19 AM

This is Donald Trump's most shocking statement yet,

However the mainstream media isn't saying a word about it!

What are they really trying to cover up?

www.legitorscamreview.com/the-final-bubble/

Mountainview's picture

The idea seems fundamentaly good, too many of public officers are only defending their job and don't serve us (the common blokes). Especially Yellen will never make a courageous proposition.

bobsmith5's picture

MDB your arguments carry no weight here.  You don't have the facts nor the reasons based upon them to convince a single person to the contrary, at lease as far as those who understands what he reads from the articles on this site.  Your comments are so lame and sophomoric to the majority of the vastly more informed and intelligent average reader here that it's like reading the immaturity of some 9th grade mind control programmed and dumbed down student from our public schools.  You are consistently stupid MDB, consistently ignorant, and so fundamentally wrong to such a degree that it defies description. 

Thank you MDB for presenting to us on this site the mind of the average democrat socialist/communist statist authoritarian so that we will know the enemy more than he knows himself.

tmosley's picture

Trump continues to speak the truth.

Yes, rates need to go up, but as many have pointed out, that would sink the government. Only question is, will he or won't he? No-one else is even willing to acknowledge the problem.

dark pools of soros's picture

The gov has been stealing from Social Security, and screwing over the public so it is time they screwed over the foreign debt.  Go mafia on their asses.  Japan/China can keep their annual trade surplus only if they let 20% of the surplus write down debt we owe as a cost of doing business...  who the fuck cares make up the rules with this crazy monopoly fiat

 

BeaverCream's picture

In case you hadn't notice that's kind of how they roll when they're out to assasinate someone's character...always has been.

johnnyyuma's picture

If he has the will to truly change the Feds death grip on the reigns of power he would be JFK'd before being sworn in. 

sessinpo's picture

BeaverCream   Based on what evidence? The establishment on both sides hates this man.

The fact that he made a lot of money actually doing things isn't evidence that he's establishment.  He's had to work within the system to make money but sometimes it's easier to win if you play by the rules.  Sometimes smart people play by the rules until they have enough power to change them.

--------

The reason both sides hate him is because he is an unknown. He is an unknown because because he has no core of values and switches sides so easily. He has been registered democrat, independent and republican.

1987 republican

2001 democrat

2009 republican

2011 no party

2012 republican

Most of his donations has gone to left leaning groups including the clinton foundation. He has done business with Soros where Soros loaned him money for the Trump Tower, Chicago.

The problem as I see it is that Trump cannot be trusted. He gets into bed with anyone that suits him at the time for HIS benefit. So lets say he becomes POTOS. A situation comes up such as a false flag attack on US soil, I really have no doubt that Trump would do just as Obama or Bush would do and curtail the rights of lawful US citizens in the name of security - The Constitution be damned. You have to remember, as head of the most powerful and corrupt organization on the planet, your first priority is to maintain the organization's power. Maybe if people viewed government that way, they would understand why I rail against  government so much.

I want you to realize that Trum is telling you what YOU already know. Did you really need someone to tell you that the US is broke? That the system doesn't work for the serfs? That the US is headed for 3rd world status? That the politicians inn DC don't care about you? Really? You mean you didn't know? I think you do. And he uses those powerful emotions to get your vote.

Then his solutions are a non starter. For most isssues, he offers no concrete plans. For the a few problems, he makes wild statements that most agree woudln't  work or would cause more problems.

Then there is the problem that Trump does some of the things he rants about.  For example, his ties are made by a foriegn country with cheap labor and imported.

So are you saying Trump just  now in 2015 till present got enough power and  wealth to decide to change the rules? Really?

No one has made an issue that Trump has made a lot of money that I know of. Why did you bring that up? Usually it is considered a good thing because he doesn't need loobbyist money. But the fact that you brought up "He's had to work within the system to make money but sometimes it's easier to win if you play by the rules." shows that Trump himself was a lobbyist doing exactly what we hate. And I don't know about you, I hate the rules because it allows and encourages it.  Yet I haven't seen Trump say a thing about how he will change those rules.

IMO, I think the establishment on both sides dislike Trump because it will cost each side more to buy him, but he will be bought. If I'm  Paul Ryan and I want this in the budget and the democrats don't, which way will Trump go? They don't know and they hate that. How much will Ryan have to give to get Trump to side with republicans? How much will democats have to give? Trump will go one  way or another and which ever way, it won't be good for you or me.

It's all a game and I won't be involved in it any more because I know it makes little difference. The system is to big and corrupt it wouldn't matter if George Washington or Jesus Christ were president at this point.

HughBriss's picture

Good read!  Thank-you.

 

 

+1

Mercuryquicksilver's picture

It's always been a game and your envolvment makes little difference. You are just now figuring that out?

So rather than making a little difference you'ved decided to make no difference. And, you are advocating that others abandon the opportunity to make that little difference?

No one gives a shit about your boycott. But, the establishment certainly appreciates it.

sessinpo's picture

Mercuryquicksilver     It's always been a game and your envolvment makes little difference. You are just now figuring that out?

So rather than making a little difference you'ved decided to make no difference. And, you are advocating that others abandon the opportunity to make that little difference?

No one gives a shit about your boycott. But, the establishment certainly appreciates it.

-------

I  will refrain from insulting you because you made the assumption that I "just figured it out" because of my latest post. And you make another falsehood by not realizing that by not playing the game, I am making a difference. I still voice my opinion like I have for over 4 1/2 years on ZH. So while I have not been here since the beginning in 2009, I have been here longer then most. And during those years, I spoke often of the problem of government well way before Trump. Well, shit, then you all should be voting me for POTUS. right?

The establishment doesn't give a shit about me or you. They appreciate themselves only. The fact you don't see that tells us a lot.

BarkingCat's picture

" So while I have not been here since the beginning in 2009, I have been here longer then most. And during those years, I spoke often of the problem of government well way before Trump. "

 

Trump actually has been VERY consistent on core issues for over 25 years.

You can pull up a YouTube video of him on Oprah or read archived Playboy interview from about 1990.


dark pools of soros's picture

You zoomed out well but are not in focus. Trump is a battering ram to allow new blood into the current totally bought & sold static power system.  Will the newer blood do anything better than the current slime?  Who knows. But from the ground up till the top everything has a chance to change with Trump..  yes it could become worse if he gets in but people are sick of the moat & castle walls that automatically shut out any change at all

 

cheech_wizard's picture

>The problem as I see it is that Trump cannot be trusted.

You could have said that up front and saved yourself the couple of minutes it took to type out your screed.

Standard Disclaimer: By making such a statement, you seem to imply you trust one of the other candidates more. Put up or shut up time, Which one?

If this is a difficult decision for you, try flipping a fucking coin and running with the results.

BeaverCream's picture

He will do what he's told to do by the American People.  Even if he doesn't do what he says he will...we know for a fact that the others won't.

tmosley's picture

Nope. No-one is big enough to push Trump around. Not even Russia or China.

ebworthen's picture

Yosemite Sam for FED chair! 

More entertaining press conferences, and maybe a stray bullet will hit Steve Liesman!

Loving the satire MDB.  Yes, it would be a disaster to pay people for saving and allowing markets to function!

Pareto's picture

he just blurts out whatever comes into his head.

 

you mean kinda like what you do?

EABOD

jcaz's picture

Good morning, Mr President...

RockRiver's picture

He oughta be removing the entire Fed

Uncle Sugar's picture

Winner!

 

Trump will go along to get along.

HughBriss's picture

Trump will go along to get along.

But...but...but...the unapologetic Trump apologists incessantly hammer-home the idea that he is Anti-Establishment!!!  In fact, I totally heard he was going to build a wall around himself to keep lobbyists out and then make the lobbyists pay for it!  Fuckin' crazy, I know, but he loves the people soooo very much -- and despises the establishment soooo heartily -- that he is willing to box himself in just to keep special interests at bay.

Who wouldn't want Trump as POTUS with that degree of dedication; with that level of zeal?!

Come now, Trump haters, let your derision and destain for our Lord and Savior be heard!  Don't allow your unfettered bigotry for plentiful, particularly-puffy hair, to be kept in the dark.  Let it spring forth into the open, so that we might shine a light on your preconceived prejudices.  Let it flow freely so that others my partake of the pleasure your morally-repugnant viewpoints inspire.

Don't keep that hate balled up deep inside.  Share it with the world...

;)

 

 

+1

E.F. Mutton's picture

David Stockman comes to mind as Plan B.

Plan A involves a bulldozer.

economessed's picture

I just hope Jim Grant is involved in this plan to rebuild!!!

SWRichmond's picture

Trump just keeps getting in their face.  Balls.

sudzee's picture

Ron Paul would be a wonderful candidate for FED head.

lordbyroniv's picture

i vote for hyperinflation.

i bought a stack of old comic books that should do quite well.

Plus, I think you will be able to trade canned ravioli for Grade A pussy.

NoDecaf's picture

A truly distinguished gentleman you are, Lord Byron the IV.

Comic books and canned raviolis, even common folk women would not resist your charms.

quadraspleen's picture

 

Canned tuna any good? Only grade B?

ParkAveFlasher's picture

Replace her with an excel formula.  Name the workbook tab "Janet".

Calculus99's picture

Correct me if wrong but wouldn't letting Congress audit the Fed like getting the fox to check on the chickens?

Both the Fed and Congress are one of the same aren't they, pigs with their snouts right in the trough.

Jeffersonian Liberal's picture

Cal,

They are not one-and-the-same. They are two different entities. The Fed is a private cartel of international banks.

But they are entwined like copulating snakes.

They are master and slave.

The Fed is the master.

But the master needs his slaves to do his work.

But you are correct. If we ever get an audit of the Fed, it would have to be a third-party that is not bound by the master/slave relationship.

pods's picture

I will take issue with the master/slave mentality.  The relationship between the FED and government is a marriage.

The only reason the FED can do what it does is through the power of government (legal tender).

It may LOOK like the FED holds all the cards, but they are part of the same organization.

And neither entity can exist without the other. A very symbiotic relationship.

Government loves to be able to deficit spend their way to riches too.  Only possible with a currency that needs exponential expansion.

pods

Jeffersonian Liberal's picture

I respect your posts, Pods, but we'll have to agree to disagree on this one.

Yes, the government goes along with the Fed, and it is a symbiotic relationship, but you'll see it's a master/slave relationship whenever the government or any politician tries to break free of that "marriage."

Yes, the government likes the benefits of a central bank, just as those foolish investors who consider the Fed the "savior" (as one investor actually told me).

So, maybe it appears to be a happy marriage, but it only appears that way as long as the central bank is truly in control (you know, "Give me control of the money and I care not who makes the law," and all that). If the government ever refuses to do what the central bank "requests," the central bank will throw a hurting on the economy to regain full "cooperation."

 

jakesdad's picture

gov needs fed to print $ (ie buy/sell collateral-less bonds)

fed needs gov to stick guns in faces of people who try to operate outside the banking/financial system, by several orders of magnitude the largest organized criminal organization in the history of humanity!  want to transact in a medium fed can't arbitrarily create more and/or banks skim flow of (ex ag)?  OMG!  must be a turrist!  or drug dealer!  or kiddie pron producer!  no, actually I just want to store value in something something that can't be dilluted at will for which I must pay protection money!  when I NEED them I'll exchange for goods/services I'd name but list would put you to sleep...

Joe Cool's picture

Trump has no business replacing people in organizations and clubs that are above the law and government itself...Dream on guys...

TradingIsLifeBrah's picture
TradingIsLifeBrah (not verified) Joe Cool Apr 20, 2016 8:52 AM

Who put Yellen in place as the Chair of the Fed? -__-

sessinpo's picture

TradingIsLifeBrah     Who put Yellen in place as the Chair of the Fed? -__- 

--------

TPTB told the POTUS to nominate Yellen. Then TPTB told the Senate to confirm. You must be new.

Dog Will Hunt's picture

Trump simply has no business governing.  I know, I know--how dare I say that to the throng of TrumpSuckers on this site?  

 

There's that sound again--the sound of Trump supporters sucking the Trump dick.  Sluuuuuuuuuuuuuuuuuuuuuuuurp.  

Pareto's picture

another special kind of stupid found their way to ZH.

pods's picture

Funny how Trump thinks the president runs things.

How quaint.

pods

Garbatrage's picture

That's how most Americans think things work, too.