My take on higher deficit-a twisted logic

1. a higher deficit is a sure thing;

2. It  can not be absorbed by the market without doubt;

3. Will US government debts collape? no, because US can not afford it;

4. The only solustion to this: Fed will almost certainly have to buy in the primary market;

5. How to label it?   It is one time thing, so not a QE. Fed will avoid this bad word  to calm investors--do not worry about inflation, just one time thing.

6. But, but, any fed's direct buying is equialent to printing dollar, or directly injecting liquidity to the market. 

 

with more liquidity a most like result of trump's higher deficity, what happen to equity?

and 

what about inflation? we will be told not worrying about it, or woryying about it later. 

 

 

Not a trade recommendation