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As 2018 nears a very successful U.S. business comeback surge, both in the economy as well as the equity markets that set a record bull market length, the 2019 follow up faces a tough momentum challenge.
However, based on the varied factors that have been created and maintained in the first two years of the Trump presidency, all signs point toward continued maintenance of the “comeback economy.”
With the gross domestic product of goods and services passing the $20 trillion mark, most indicators point to a gain of nearly 3 percent, a slight improvement over 2018’s 2.9 percent pace.
The major question mark hovering over America’s revived manufacturing and technological expansion sector is the outcome of the tariff problem. President Trump has courageously tackled this inequity, especially as it pertains to the main culprit, China. That country has maintained a record tariff on its multibillion-dollar exports to the United States over the last several years.
But barring an unexpected tariff negotiation disaster, the following economic strong points will continue their current growth in 2019:
In the wake of a business-favorable new tax structure, congressionally approved this past year, corporate investment growth is expected to override 10 percent, exceeding last year’s 7-percent gain and substantially lower amounts in the past decade.
This expected comeback of the U.S. manufacturing and technology sectors will reach new records, resulting in major employment increases and corporate expansion records. It also will see the development of U.S. energy growth, both in its domestic oil and natural gas production, as well as its surprising export growth in 2018. This is sure to be eclipsed substantially in 2019, as six major Gulf of Mexico ports for both West Texan Intermediate oil and natural gas conversion begin major new shipments worldwide.
President Trump continues to put pressure on the United Nations, NATO and the World Bank, while trying to curb excessive expenditures by some bloated U.S. agencies, such as the Environmental Protection Agency, and cuts financial give-a-ways to foreign entities, such as the Palestinians and others who are distinctly unfriendly toward the United States. It could result in the saving of billions of U.S. tax dollars added to an all-time high of the U.S. Treasury deficit balance.
Despite such misdirection of the U.S. dollar, it has replaced the United Kingdom pound’s leading status as the economic world takes note of an America that’s “becoming great again” on all fronts, foreign and domestic.
While interest rates are sure to move higher, the current Federal Reserve Board leadership is already indicating a positive economic reality with U.S. economic growth, generally approved by the comments and action from leading U.S. corporations.
All in all, look for 2019 to see major employment growth and lower unemployment rates, as the new year begins in positive succession.
With the current call for impeachment by the growing horde of people disillusioned by President Trump, those uttering this threat generally misunderstand what it means to be impeached.
This venting of frustration against White House activity was last heard during the eight-year Clinton presidency. Then the president was caught in a broad range of sexual misbehavior charges, which he vehemently denied.
Such threats of ousting the historical presidencies over the years came close to fruition during the inherited presidency of Andrew Johnson, who succeeded the assassinated President Abraham Lincoln. Johnson served as Lincoln’s vice president, despite his original role as a senator from the Confederate state of Tennessee as the Civil War began.
Johnson, who finished out Lincoln’s term, was not convicted and ousted because the proceedings were one senatorial vote short due to that senator’s illness and incapacity.
Most current observers will remember the uproar over President Clinton’s unpresidential behavior. However, despite a substantial vote for impeachment during his second term by a majority of Republican senators, it came to naught. The two-thirds majority needed for a conviction was impossible to attain.
It’s unfortunate that such terms as impeachment are bandied about when most of those in Congress, as well as the uninformed media and the general public, seem not to know about the senatorial two-thirds majority vote necessary to make such a critical decision operative. Such a possibility in the future is unlikely to ever take place, due to the impossibility of this restriction coming together.