Treasury secretary Mnuchin recently said that Trump’s presidency has added trillions of dollars of value to the stock market.
Mnuchin is referring to the “Trump rally,” which is a fraud.
This kind of technical babble needs to be diminished.
Minions like Mnuchin narrate the measurable values with a purpose. The valuation may not align with objective reality at all; except that, like Objectivists contend, it is whatever the bourgeois, power elite say it is.
Record equity valuations are the result of the ACA. Rising costs align with a massive consolidation of wealth. Now the trick is to keep the capital gained from being taxed away to support healthcare prices.
The ACA has had a deflationary effect, described by the Fed as disinflation.
Against a growing deflationary trend, the Fed raised the funds rate anyway, and this showed up in market rates actually declining against the rising, mandated rate. The contraindicator occurred because the measurable effect aligns with deflation (consolidation of wealth) and not disinflation.
Interest rates are still really low (measuring the real deflationary trend we are actually in — aligning with declining sales, and rising job losses, in the retail sector, for example). There is every incentive for the capital gained to flow into equities, which has nothing to do with President Trump.
The current narrative does not align with the real risk.