Wednesday, 9 November 2016

Bad news for the US, rather better for the UK

I wish I had followed my hunches and put money on a Brexit/Trump double in the spring. However, I am happy this morning that Hillary Clinton did not win the White House/ The prospect of being dragged into another costly war has receded. Trump is far more likely to resolve disagreements with foreign powers by negotiation than by force of arms. Also, UK business can take advantage of the immediate (but temporary) fall in the value of the dollar to stock up on raw materials.

The predictions of disaster for the western world are also exaggerated. Mr Trump's inexperience may actually be an advantage as he will  have to pick expert advisers. The bad news for America is that one of the few policy promises he will actually stick to is the one to reduce taxes which will increase the US budget deficit and boost inflation.

1 comment:

Frank Little said...

It seems I was rather too ready to assume Mr Trump's disengagement from Palestine. He has suggested he will not support a two-state solution nor oppose illegal settlements. This report goes further than Mrs Clinton would have done in following the Netanyahu line. One hopes that it was all in aid of gouging campaign funds from a sympathetic audience and that he will not follow through on these pledges. The wave of Arab terrorism which they would inspire would affect the USA and most of all her vulnerable allies.

Meanwhile, Jews in the US are apprehensive as both the Ku Klux Klan and neo-Nazis endorse Donald J Trump.