The dollar plunged after Republicans in Congress abandoned their plan to overhaul Obamacare this week.
The plan to “repeal and replace” the Affordable Care Act collapsed after Senators Mike Lee and Jerry Moran joined fellow Republicans Susan Collins and Rand Paul opposing it. In fact, “repeal and replace” was a misnomer. The Republican plan kept many key elements of Obamcare in place. It was more of a Republican revamp than any kind of repeal.
Nevertheless, pundits and analysts widely viewed the failure to get healthcare reform done a major stumble for Republicans, and it seems to cast doubt on the Pres. Trump’s ability to advance his ambitious economic agenda. Reuters put it this way:
During the recent interview at International Metal Writers Conference, Peter Schiff said we are in the eye of an economic hurricane right now. Investors need to take advantage of the relative calm and buy gold.
But many Americans who typically invest in gold have been lulled into a false sense of security with the election of Donald Trump. Peter said that’s a mistake. Despite his intentions, Trump won’t be able to change the course we’re already on.
Today is the 139th day that the Republican Congress has not repealed nor replaced Obamacare.
In fact, Congress hasn’t moved forward in any substantive way on any of Pres. Trump’s ambitious economic agenda. There is no sign of tax reform. No sign of significant regulatory reform. No infrastructure spending bill. And of course, we still have Obamacare.
This raises an important question: can Trump deliver on his economic promises?
In his most recent Gold Videocast, Peter Schiff pointed out that Pres. Trump inherited an economic mess from Barack Obama. Even if he can manage to get his policies implemented in the midst of the political circus going on in D.C., it isn’t going to be enough to stop the downward economic spiral.
Yes, having Donald Trump president is better than having Hillary Clinton as president. But he is not a get out of jail free card for the economy… The problem is the damage is going to hit on Donald Trump’s watch. Barack Obama got out of Dodge just in time.”
Brandon Smith at Alt-Market.com agrees that the economy is due to take a plunge. He takes things a step further, asserting that Trump is just the scapegoat the central bankers have been waiting for. Now they can nudge up interest rates and blame the chaos caused by popping bubbles on the president specifically and Republican policies in general.
Could Trump be facing his own Watergate?
The president’s firing of FBI director James Comey in the midst of probes into the administration’s possible connections with Russia set off a political firestorm. There has even been talk of impeachment in recent weeks.
While at this point, much of the rhetoric spinning around the Beltway is political in nature, the controversy surrounding the administration still spells trouble for Trump. Even if there is no fire burning underneath the smoke, political opponents will undoubtedly leverage the chaos to slow the administration’s agenda.
Remember tax reform?
It seems like a lifetime ago. But it was just last month that the Trump administration rolled out its ambitious tax reform plan. The single-page blueprint was really more of an outline and offered little in the way of specifics. Still, it sparked hope that Republicans would push forward with significant tax reform this year.
Since then, we’ve heard pretty much nothing. Talk of significant tax reform got sucked into a black hole of FBI director firings and Russia probes. In fact, many analysts are starting to doubt Republicans will be able to get tax reform done at all.