Will Trump tell Powell “you’re fired” in 2019?
Considering the mess that global politics for 2018 has been, could 2019 be the year we see Trump tell Jerome Powell “you’re fired”, the election of Jeremy Corbyn send the GBPUSD to parity, or the Reserve Bank launch quantitative easing on Australia’s housing bust?
Saxo Bank’s Outrageous Predictions for 2019, which focused on a series of unlikely but unappreciated events that could send shockwaves across financial markets, also predicted by the bank was the European Union announcing a debt jubilee.
It pointed to a Global Transportation Tax enacted as climate change concern spreads, Germany entering a recession, and the IMF and World Bank announcing intent to stop measuring gross domestic product and focus instead on productivity.
It also foresaw that Apple could secure funding for Tesla at $520/share, a corporate credit crunch could push Netflix into GE’s vortex, and that X-Class solar flare could create chaos and inflict $2 trillion worth of damage.
“This year’s edition has a unifying theme of “enough is enough”. A world running on empty will have to wake up and start creating reforms, not because it wants to but because it has to,” Saxo Bank’s chief economist, Steen Jakobsen, said.
“The signs are everywhere. We think 2019 will mark a profound pivot away from this mentality as we are reaching the end of the road in piling on new debt and next year will see us all beginning to pay the piper for our errant ways.”
He also, of course, clarified that the Outrageous Predictions shouldn’t be considered the bank’s official market outlook. Considering how unpredictable much of Trump’s ascent has been however, it’s fair to say that stranger things have happened.
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