Quantitative Deflation
As the euphoria generated by the election of Donald Trump subsides, ebbing away like a strange and fantastic dream, the financial markets are coming to realize that the promises of tax cuts, spending hikes and deregulation are empty. One very tall central banker we know, for example, is no longer worried about his eponymous rule prohibiting bank principal trading being repealed. Thus we all mentally reset the quantum monetary clock back to the week prior to the November ’16 election and ask: what next?