US: Consequences of a move to the far left – Rabobankby FXStreet Team
Philip Marey, a US strategist at Rabobank, take a look at the campaign promises made by Bernie Sanders, at present the strongest candidate from the far left, and a self-described ‘Democratic Socialist.’ The US dollar could head lower if a 'radical' Democratic candidate wins the elections.
“A ‘Red President’ – supported by Democratic majorities in the Senate and the House of Representatives – would reverse Trump’s tax cuts and deregulation efforts, and make a radical shift in the spending pattern of the federal government.”
“However, what would not change very much is international trade policy.”
“The spending plans of the left are so ambitious that the increase in tax revenue is likely to be outstripped by the increase in federal government spending.”
“So under ‘the Red President’ the corporations and the rich pay more taxes, while the banks are cut into pieces. Meanwhile, workers will get a bigger slice of the pie and there will be jobs for all, college for all, Medicare for all and a Green New Deal.”