FX MONETARY POLICIES
Te Trump agenda, it seems, is not set in stone. Te president-elect has a range of advisors with as many ideas. Steven Mnuchin, his nominee for Treasury Secretary,
“we’ll take a look at everything,” even the possibility of extending the maturity of the federal debt with 50-year or 100- year bonds to take advantage of unusually low interest rates.
Steve Bannon, appointed chief White House strategist, seems to be envisioning Roosevelt-style experimentation with whatever works. “We’re just going to throw it up against the wall and see if it sticks,” he said in an interview posted by Michael Wolff on November 18th:
Reagan revolution — conservatives, plus populists, in an economic nationalist movement.
said in November that Tat sounds promising. Obsolete systems will go and will be replaced. But
bond markets. An infrastructure bank tapping into private investment has also been suggested. Both rely on public/ private partnerships. Michelle Chen, writing in Te Nation on December 2, calls the plan “a full on privatization assault.”
Wilbur Ross and Peter Navarro proposed funding the plan with tax credits to private investors, who would then borrow from the bond markets
how to ensure that the replacements are an improvement?
Like [Andrew] Jackson’s populism, we’re going to build an entirely new political movement. It’s everything related to jobs. Te conservatives are going to go crazy. I’m the guy pushing a trillion-dollar infastructure plan. With negative interest rates throughout the world, it’s the greatest opportunity to rebuild everything. Shipyards, ironworks, get them all jacked up. . . . It will be as exciting as the 1930s, greater than the
48 FX TRADER MAGAZINE January - March 2017
Another Look at the Trillion Dollar Infrastructure Plan
Current proposals for funding Trump’s $1 trillion infrastructure project have been heavily criticized. In October, his economic advisors Wilbur Ross and Peter Navarro proposed funding the plan with tax credits to private investors, who would then borrow from the
A February 2015 report by Public Services Int ernati ona l titled “Why Publ ic-Private Pa r t ne rsh i ps Don’t Work” maintains that public/private partnerships are just another form of government b o r row i n g , moved off- ba l ance-she et to
evade concludes:
[E]x pe rie n c e over
the last
15 years shows that PPPs are an expensive and inefficient way of financing infastructure and diverting government spending away fom other public services. Tey
conceal public
borrowing, while providing long-term state guarantees for profits to private companies.
PPPs also won’t work to fund the sorts of unprofitable but necessary infrastructure projects that Trump’s plan is supposed to include. As
debt
ceilings and deficit fears. The
report
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