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Hedge Fund CIO: "Biden Is Betting The Voters That Brought Trump To Power Can Be Bought"

Tyler Durden's Photo
by Tyler Durden
Sunday, May 02, 2021 - 12:50 PM

“I know some of you at home are wondering whether these jobs are for you. So many of you, so many of the folks I grew up with, feel left behind and forgotten in an economy that is rapidly changing. It’s frightening,” said Biden, sketching out his ‘Blue-collar Blueprint to build America.’

He claims 90% of the new jobs won’t require college degrees, 75% won’t require associate degrees.

The presumption is that these voters brought Trump to power and inexplicably supported him despite his $1.5trln in tax cuts for corporations and the wealthy.

Biden is now betting they can be bought. Most folks can.

“Trickle-down economics has never worked,” said Biden, scratching out the policy first drawn-up in crayon on a napkin by Reagan in 1981.

“We’re going to reward work, not wealth,” said Biden, unsure what that means, but liking the sound of it, unveiling an utterly unprecedented $6 trillion in new federal spending: The American Families Plan, American Jobs Plan, and American Rescue Plan.

The scorched-earth spending plans covered every inch of Joe’s paper, to benefit all but the 1%. Had such a sketch been unveiled when Biden first became a senator in 1973, stocks, bonds and the dollar would have simultaneously collapsed.

But after decades of disinflationary policies that favor capital over labor, inflation-expectations are so muted and investors are so convinced the Fed can maintain calm, that markets barely budged.

This illusion will remain vivid until the day it dissolves. In a flash.

But until then, America’s bitter political battle will intensify as Democrats attempt to secure near-permanent power by any means necessary, fearing that a return of Republicans will result in that party securing the same. Biden’s approach will be to spend whatever it takes to paper over the Red and Blue lines of national division, redrawing them as Capital versus Labor.

And no one can know if it will sell, we only know it will be the most expensive blueprint ever drawn.

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