Perspectives: Episode 107 – Can we afford Trump?

This week Escala Partners CIO, Tracey McNaughton, discusses the implications of the US presidential election including the need for governments to open their wallets even more – 'spend baby spend'. (0:56) The US election result is in. Probably the biggest surprise was how convincing a win for Trump it was. (3:07) The market reaction to the election result was pretty dramatic. Bitcoin has hit a new all-time high and DOGEcoin is up 150% since Elon Musk was named to help lead the new Department of Government Efficiency or DOGE for short. (7:19) That is a long list of winners. Where are the losers under a Trump administration? (8:47) During his term, Biden passed a number of pieces of legislation that we have talked a lot about on this podcast – the Inflation Reduction Act, the Chips Act and the Infrastructure Bill. All three were worth $1.6 trillion. What are the chances of Trump repealing some of this? (10:10) What does the US election mean for the Australian economy? (11:54) Another election to take place next year will be in Germany. The German government effectively collapsed on the day of the Trump election. (14:14) How will a Trump presidency affect monetary policy? (16:34) There has been a lot of talk about households facing an affordability crisis. What about governments? Governments everywhere it seems are sinking deeper and deeper into debt.