KC had a string of great back there with Charles , Priest Holmes , and Larry Johnson . <| sep |> It ' s actually starting to make more sense to me . From an economic standpoint , slowing trade while the dollar is increasing in value softens the blow to domestic manufacturing . Otherwise , you ' re doubling down on screwing over domestic producers because foreign is not just cheap it ' s doubly cheap when both the dollar is strong and trade is easy . That harm that comes from this fallout of domestic firms would probably far exceed the good . To hedge the problems of increased interest rates and hard money which drives up the value of the dollar , lower taxes , and , in conjunction , aggressive government spending under the Keynesian school of thought also make sense . The deficit will be driven up in contrast to the high taxes that lead to deficit reduction in an expansion but instead of no one spending on new projects and growth , you have the government stepping into that role . The allusion to driving the economy into a ditch comes from managing these two main points . If you cut trade too much and everything is too expensive , domestic spending will be cut and that leads to a deep recession . If you increase interest rates too much but don ' t get the tax effects or government spending that you want or cut taxes too much , sending the deficit into freefall , new projects won ' t occur and the economy again falls into a prolonged recession period because there ' s nothing there for the future . From a market standpoint this should probably indicate that a recession is coming soon , especially since it ' s hard to imagine that the new administration would time everything perfectly . But when bonds go down as high interest rates drop bond values , stocks typically go up . It seems to me that Dalio thinks the Trump advisory team is competent enough to manage this transition and curb the contraction to come out strong on the other side , which is what Trump is promising . His populist message makes it sound pretty bad , but it ' s actually just basic boombust economics .