Economy

HOLY CRIPE: Fox News Blames Stock Market Plunge On – Bernie Sanders?

Posted by on February 24, 2020 at 12:15 pm. 3 Comments :

American investors woke up Monday morning to see a devastating sell off on Wall Street and other markets around the world. The uncontested view of economic experts is that the sharp decline resulted from growing concerns about the coronavirus (Covid-19) as it continues to spread. Factories in China are shut down. Trade is being curtailed. International festivals and conferences have been canceled. The global financial impact is undeniable.

Donald Trump, Stock Market

Well, undeniable everywhere but on Fox News, where good news is always due to the heavenly inspired works of Donald Trump, and bad news can only be the work of Satan’s minions in the Democratic Party. Fox News host Charles Payne, in what may be the most idiotic economic analysis of the year to date, sought to carry out that doctrine during an in interview as the markets were in the process of imploding (video below). He was asked by the allegedly “straight news” anchor, Ed Henry, this brazenly leading question:

“Is the sell off all coronavirus, or is this the first time the markets are open since Bernie Sanders took control of the Democratic battle?”

The audacity that it takes to allow that question to slither through one’s lips is impressive. It certainly is the first time the markets have been open since the Nevada primary caucus, but that has nothing to do with the sell off on Wall Street. How would that explain the sell off in markets around the world where Sanders is not running for anything? What’s more, Sanders’ win in Nevada is hardly “taking control” (a loaded term in itself) of the Democratic battle. It is just the third contest out of fifty (plus territories), and represents a small percentage of votes cast and delegates acquired.

Payne’s response to Henry’s stridently biased question was that “The Bernie factor is finally rearing its head in the stock market.” He then rattled off a list of companies in the health sector that are suffering big losses. Of course health-related companies would naturally be hurt by news of an impending global pandemic. And that harm would be throughout the world, just as it is currently playing out. But that obvious fact was incomprehensible to Payne and his Fox colleagues. Their deliberately dishonest banter continued with the following exchange:

Sandra Smith: Can you directly attribute that loss to Bernie Sanders?
Payne: Absolutely…there’s absolutely no doubt. [later adding] This is the first time, I think, that Wall Street has taken Bernie Sanders very seriously.

“Absolutely no doubt”? Neither Wall Street, nor anyone else, should take Fox News seriously. Payne is not just speculating on a possible contributing factor. He is insisting that Wall Street’s alleged fear of Bernie Sanders is undeniably the only cause of the worst drop in the Dow since December of 2018. That’s not just glaringly false, it’s painfully stupid and grossly irresponsible. Ironically, throughout this segment the chyron on Fox News read: “STOCK MARKET SELLOFF ON CORONAVIRUS CONCERNS”

Payne is supposed to be one of Fox’s financial experts (his own program is on the Fox Business Network), although like everyone else at State TV, he weaves his right-wing opinions into all of his comments. He recently made the bizarre assertion that “Wall Street Loves Donald Trump,” as if that was a positive endorsement for his reelection. And like many of the men on Fox, Payne has been charged with sexual assault. Fox settled a lawsuit with Scottie Nell Hughes, a former contributor, who had accused Payne of rape.

The political biases of Fox News are not news to anyone. And with the advent of Donald Trump, they have become even more conspicuously partisan. But this ludicrous attack on Sanders is grotesquely out of bounds, even for Fox. They are fully indoctrinated into the Trump Cult. And nothing better demonstrates that then this asinine attempt to blame Sanders for a pandemic-driven market decline that he clearly had nothing to do with. There is apparently a virus spreading through the Fox News studios that is turning all their brains into oatmeal.

How Fox News Deceives and Controls Their Flock:
Fox Nation vs. Reality: The Fox News Cult of Ignorance.
Available now at Amazon.

SO WHAT? ‘Wall Street Loves Donald Trump’ Says Trump-Fluffing Fox News Flunky

Posted by on February 14, 2020 at 12:58 pm. 2 Comments :

Perhaps the most frequently cited argument Donald Trump leans on to convince people he should be reelected is the performance of the stock market and the economy during his presidency. He is anxious for the America people to examine those factors when deciding who to vote for in November. And they really should. Because if they actually do he’ll be in big trouble.

Donald Trump, Stock Market Crash

Contrary to Trump’s relentless assertions that the economy is booming, there were significant weaknesses that are present and getting worse. The manufacturing sector is currently in recession. Consumer spending and industrial output are declining. The GDP grew at a measly 2.3% in 2019, far below Trump’s promised 6%. Wage growth is down, and the only upside was due to the increases in the minimum wage implemented in Democratic states, and opposed by Trump and the GOP.

So based on that record of abject failure, Fox News is getting behind Trump’s cheerleading and rooting for the bad guys on the economic playing field: Wall Street. The stock market has never been an accurate indicator of economic health. It merely represents what institutional investors think about the valuation of equities, which fluctuate independent of the broader economy. The economy, on the other hand, is comprised of many other factors such as consumption, employment, wages, trade, and inflation.

Most Americans do not own stocks, either individually or in retirement plans, such as the 401Ks, that Trump is always bragging – falsely – are making everyone rich. He did this again just this week. But on Friday’s episode of Fox & Friends on Fox News, the “Curvy Couch” potatoes invited Fox Business host Charles Payne to rail on Democrats, saying that “There’s no clear, good candidate on the Democratic side.” He then went on to malign them all for not garnering support from Wall Street, as if that’s a bad thing:

“If you listen to the policies and here on Wall Street, you don’t really want to put a lot of money into any of these candidates. They’re telling you they’re gonna attack your wealth. Wall Street loves Donald Trump.”

Indeed! Wall Street does love Trump. That’s because he panders to them in every way imaginable. His tax cuts for corporations, his termination of regulations that protect workers and the environment, and his constant complaints about the Federal Reserve not lowering interest rates (which would have an enormous benefit for him personally), are all major pluses for big business.

Why Fox News believes that touting Wall Street’s love for Trump is a positive thing for his reelection is puzzling. The majority of Americans have not been looking for Wall Street’s favorite candidate before making a voting decision. They do not value Wall Street’s endorsement. Has anyone ever heard of a candidate boasting support from Goldman Sachs? But on Fox News this was presented as something that would excite average Americans. And the glassy-eyed in-studio audience of Trump cultists obediently applauded the comment.

For the record, this has not always been the position taken by the Trumpists. During the 2016 campaign Trump tried to label Hillary Clinton as being “owned by Wall Street.” But now that Trump is in the White House and his policies are propping up the upper crusters, he is all for being Wall Street’s puppet.

However, even in this regard Trump underperforms. The stock market growth under President Obama exceeded that of Trump, but Obama didn’t have to employ short-term trickery like tax cuts or deregulation to succeed. He just managed the country’s affairs in a responsible manner that produced organic, sustainable growth. Trump, on the other hand, is presiding over a sandcastle economy that is heading for a major recession. And that’s something that Trump himself recognized prior to his political career when he said that “I’ve been around for a long time and it just seems that the economy does better under the Democrats than the Republicans.” Here he is in his own words:

How Fox News Deceives and Controls Their Flock:
Fox Nation vs. Reality: The Fox News Cult of Ignorance.
Available now at Amazon.

Trump’s Dementia Shifts to High Gear as Impeachment Trial Winds Down

Posted by on February 1, 2020 at 2:18 pm. 6 Comments :

On Friday afternoon the cowardly and compromised Republicans in the Senate voted to allow Donald Trump to become America’s first de facto emperor. They endowed him with blatantly unconstitutional powers that would permit him to openly violate laws, suppress dissent, and engage in overt acts of tyranny so long as he deems it in the public interest. That is not what the Founders and Framers intended.

Donald Trump

This congressional betrayal was justified by the flimsiest of arguments. The Senate GOP has taken the position that Trump’s crimes were merely “inappropriate,” as opposed to criminal, and therefore not subject to reprimand. Emboldened by these events, Trump has withdrawn into his Mar-A-Lago bunker to wallow in this ascension to monarchism and virtually unchallangeable reign. In the morning hours of Saturday he celebrated with tweets that exalted himself as “America’s Greatest President” who is putting on “The Greatest Show On Earth.”

Setting aside Trump’s slobbering, narcissistic adoration of himself, everything else in those tweets was either grossly misrepresented or utterly false. Lou Dobbs of the Fox News business channel is one of the Fox family’s most ardent Trump-fluffers. But his show is hardly a national success. It has no business programming competition because CNBC is airing reruns of shows like Shark Tank at the same time. And Dobbs’ audience is about a quarter of the size of his time period competition on MSNBC. As for Dobbs covering Trump “fairly & objectively,” that’s so hysterically ludicrous it hardly warrants a response.

Trump’s claim that his “poll numbers are the highest since election,” is a pitiful statistic to brag about. His approval rating is sitting on an abysmal 44 percent, and has never hit 50 at any time during his presidency. That’s an achievement no other president can claim. Even the Fox News poll shows Trump is broadly unpopular. His disapproval, however, remains well above a majority of the American people, as it has for the last three years. There is even a majority favoring his impeachment and removal from office.

Trump’s ego is now reliant on being fed by his evermore frequent cult rallies. He believes that the glassy-eyed disciples who show up for the free, Trump-vangelical, revival meetings represent the mainstream of America. But what’s even more indicative of his mental infirmity is that he thinks he puts on a “great” show. That’s only true if you really like the tedious repetition of moldy lies and fetid talking points.

Trump also posted a picture of himself “exercising” on the golf course. That’s his way of pretending that he isn’t bothered by having been impeached, which regardless of how the Senate votes next week, will permanently stain his legacy that is already bursting with failures and embarrassments. For instance, he is conspicuously ignoring the news that 2019 was a dismal year for the U.S. economy. It achieved a paltry 2.3% growth rate. 2018 and 2017 weren’t any better (2.9% and 2.4% respectively). And that’s after Trump had promised that his tax scam and other economic policies would produce growth of up to six percent:

TRUMP (Dec 16, 2017): The economy now is at 3%. Nobody thought it would be anywhere close. I think it could go to 4, 5, and maybe even 6%, ultimately.

Trump also ignored the 600+ point drop on the Dow Jones on Friday. That brings the decline of the last two weeks to 1,100 points. Trump is always quick to tweet about stock market gains, but then clams up when it goes the other way. That’s how his psychotic obsession with exalting himself as all-knowing and infallible drives his obsessive behavior. But as time wears on him, his mental state is showing signs of deterioration. And that is evident in his public appearances more than anywhere else. As seen here:

How Fox News Deceives and Controls Their Flock:
Fox Nation vs. Reality: The Fox News Cult of Ignorance.
Available now at Amazon.

The Real Horror Show: Trump vs Trump on Democrats and the Economy

Posted by on December 6, 2019 at 11:59 am. 4 Comments :

The Bureau of Labor Statistics released its report for the month of November on Friday morning. Its top-line numbers looked pretty good, although there are caveats that need to taken into consideration, such as the fact that in November 42,000 striking GM auto workers went back to work at the conclusion of the strike.

Donald Trump Rally Trash

Nevertheless, Donald Trump does what he always does whenever there is some ostensibly good news reported: He takes credit for it. Of course, there is nothing in Trump’s record that can be plausibly cited as having any impact on the labor market. In fact, virtually every initiative that might help American workers has been bottled up in congress by GOP Senate majority leader Mitch McConnell, including infrastructure projects and a minimum wage increase. But didn’t stop Trump from tweeting that…

As usual, Trump is speculating about imaginary world that would be a utopia were not for his political foes conspiring against him – and America – at every turn. That is the textbook reaction of a malignant narcissist who has convinced himself of his indisputable supremacy. What it is not, however, is anything recognizable as the truth.

Many studies have been published that prove that the economy almost always does better during Democratic administrations than Republican. Nine of the last 10 recessions have been under Republicans. And since World War II, 24.4 million more jobs created under Democratic presidents. Also, real GDP growth was 44% higher under Democratic presidents. Meanwhile, unemployment has been 18% higher under GOP presidents.

That said, perhaps one of the most relevant voices in this debate is that of Donald Trump who, in 2004, told CNN’s Wolf Blitzer that “I’ve been around for a long time and it just seems that the economy does better under the Democrats than the Republicans.” Here he is in his own words:

So Trump may have correctly labeled the economic hard times our country has endured as a “horror show,” but he has forgotten who the real monsters are. It isn’t really surprising that Democrats have performed better economically. The Republican agenda is tightly focused on corporations and the wealthy who horde their prosperity. Only when the middle class prospers does the broader economy succeed. The Republican economy is currently running record deficits and running on fumes that will eventually choke the nation into recession. And if the country wants to return to its past healthy economic environment, it had better reject the Republican facade of growth and embrace the real world results of the Democrats.

How Fox News Deceives and Controls Their Flock:
Fox Nation vs. Reality: The Fox News Cult of Ignorance.
Available now at Amazon.

BULL SCHITT! Trump Resorts to Infantile Profanities to Sell His Lies About the Economy

Posted by on November 16, 2019 at 1:46 pm. 6 Comments :

Remember when Donald Trump was elected and pundits speculated about when his raw and rancid campaign persona would transition into something more presidential? Yeah, that was great. The naivete of the media persisted for months, and some stubborn holdouts are still expecting Trump to pivot from his bombastic bullying to something closer to a statesman. Good luck with that.


On Saturday morning’s regularly scheduled Trump Tweetstorm, the Crybaby-in-Chief unleashed a typically dishonest tirade. It was plainly intended to thrust the nation into fear of the Democrats’ efforts to hold Trump accountable for his cornucopia of impeachable crimes. Nevermind that a majority of the nation favor his impeachment and removal from office, even according to polling by Fox News. The recent impeachment hearings in Congress have clearly flustered the President, as members of his own administration are testifying to his illegal conduct. Consequently, he is reaching for far flung fantasies to frighten his glassy-eyed disciples into propping up his rapidly deflating ego. He tweeted that…

“Pelosi & Schitt”? Is anyone else concerned that our president has the emotional maturity of six year old who was dropped on his head ten or twenty times? And for those who might try to excuse this as an unfortunate typo, be aware that this isn’t the first time that the Trumplet has sunk to this level of asininity. He is merely expressing himself at the level that is natural for him. And coincidentally, it’s the same level as his cult worshiping followers.

As for his stock market prognostications, Trump could not be farther from reality. Consistent with his recent relentless lying about the economy, his fear mongering that the market would crash and thrust the nation into a depression if he were impeached has no factual basis. Particularly because all the evidence shows that the stock markets have performed better during Democratic administrations than when Republicans were in charge.

What’s more, Trump’s motivations with regard to the economy are uniquely personal. All he is looking for is a short-term stimulative effect on the stock market. That’s partly because he wants to artificially boost the market in advance of the 2020 presidential election to enhance his own reelection prospects. But Trump is also a failed businessman who has racked up hundreds of millions of dollars in debt, much of it with variable-rate loans. When he took office in 2017 he was the most indebted president in history, owing more than $350 million to Deutsche Bank alone. That debt is expensive to service. But when interest rates go down, as he has been prodding the Fed to do, so do the costs of servicing that debt, and he saves literally millions of dollars.

To be sure, there is a recession on the horizon. It is unarguably the Trump Recession that is the result of his reckless policies. Among them, there was the tax scam reform bill that cut taxes for corporations and the wealthy while throwing crumbs to everyone else. That has produced the biggest annual deficit in the nation’s history, reaching into the trillions for the first time. That, in turn, has resulted in the highest federal debt ever, exceeding $22 trillion. Other signs of the recession include…

  • Equity outflows into the relative safety of bonds
  • Interest rate cuts that are generally done when the economy is weak
  • Trump’s tariffs causing bankruptcies and job losses
  • Tepid GDP growth of 1.9% (well short of the 4% to 6% Trump promised)
  • Manufacturing declines
  • Weak wage growth
  • The highest income inequality ever

So Trump’s boasting of the Dow hitting 28,000 doesn’t really mean much. In fact, it’s really just a Wall Street head fake that occurs prior to almost every downturn. Institutions are buying equities to drive prices up so that they can sell high into the rising market. When they do the rest of the market – and most citizen investors – will be stuck holding stocks worth half as much. Smart investors are getting out now, as indicated by the inflows into bonds noted above.

No one can predict with precision when the recession will hit. But when it does you can rest assured that Trump will blame it on Democrats. That’s true whether he’s impeached or not. His story changes to fit the circumstances. In recent weeks Trump has tweeted that his impeachment is a drag on the stock market:

However, now that the impeachment hearings have gone public and are much bigger news than ever, he’s celebrating new highs in the market. So that must mean that impeachment is boosting the markets. Right? Well, only if you expect Trump’s babbling to be honest or consistent or logical. And if you do, you’re probably already headed for a severe depression.

How Fox News Deceives and Controls Their Flock:
Fox Nation vs. Reality: The Fox News Cult of Ignorance.
Available now at Amazon.

Dumb Trump Lies: My Most Asked Question at G7 is ‘Why Does American Media Hate America?’

Posted by on August 25, 2019 at 12:20 pm. 3 Comments :

The leaders of the seven largest national economies in the world (the Group of Seven, or G7) are currently meeting in Biarritz, France. There is surely much to discuss about international trade, currencies, investments, labor, the climate crisis, and more. But Donald Trump, alone among his colleagues, is fixated on an issue that has long been a fetish that he can’t seem to shake off.

Donald Trump

While in France Trump has predictably tweeted up a storm about a variety of matters that have nothing to do with the G7 summit. He wished happy birthdays to Sean Connery and Regis Philbin. He thanked Fox News clowns Diamond & Silk for a flattering tweet that was more than a month old. He defended his blasphemous assertion that he was “the Chosen One” and the “second coming of God.” And he kept his Twitterati apprised of every time he had a meal.

However, by far Trump’s pronouncements revolved around his paranoid obsession with the media. It’s a topic so consuming that he virtually ignores everything else going on at at this annual gathering. At least seven times he whined about one complaint or another with the press that he regards as “the enemy of the people.” And this hyper-concentration on this subject managed to make the full circle back to a bizarre projection of his own neuroses onto others. In the course of this dissembling, Trump manufactures flagrant lies to support his delusions. For instance:

So Trump wants people to believe that the heads of the world’s biggest countries are all concerned, not with critical matters of international economics, but with Trump’s personal battle with the press that he despises. He tries to pretend that the problem is with media hating America, as opposed to the media simply doing its job by reporting on him and his administration’s efforts to ignore looming threats. He is not America. Trump also accuses the press of rooting for the country to fail when, in fact, they are only covering the very real danger signs in the economy. Dangers that he himself is responsible for, and may even have intended for his own benefit.

In addition to this ludicrous assertion that all the other world leaders are hounding him with questions about the press, Trump also tweeted that “The Media is destroying the Free Press!” Which is like saying that the shoes are destroying those things you wear on your feet. He claimed the press is trying to “force a Recession.” Which, if the past is any indicator, would likely hurt the media more than most other businesses. He said that the media’s purpose in destroying itself is to hurt his prospects for reelection. Which is a pretty unselfish thing to do, don’t you think?

Trump also tweet-bragged about disreputable polling in order to stroke his own fragile ego. But he forgot to note that even a couple of his favorite pollsters showed him at low points of the year. And he twice ranted about Fox News hiring former Democratic National Committee official, Donna Brazile, falsely accusing her of giving Hillary Clinton debate questions. He’s still obsessing over the 2016 election.

It would be nice to say that the American people can rest assured that their President is hard at work in France, hammering out global solutions with other leaders. But no one thought that was going to happen anyway. As usual, he is embarrassing himself and the country with his ignorance, incompetence, and narcissism. And he continues to make the case for his impeachment and/or commitment to an institution – penal or mental, take your pick.

How Fox News Deceives and Controls Their Flock:
Fox Nation vs. Reality: The Fox News Cult of Ignorance.
Available now at Amazon.

The Chosen One ‘Hereby Ordered’ American Companies to Obey the Divine Will of Trump

Posted by on August 23, 2019 at 12:09 pm. 3 Comments :

The severity of Donald Trump’s mental infirmity is expanding at breakneck speed. Just two days after Trump proclaimed himself “The Chosen One,” and retweeted an anti-Semitic conspiracy crackpot who declared that Trump is the “Second Coming of God,” his Assholiness is now barking out deranged orders to his “subjects.”

Donald Trump Tyrant Dictator

In another one of his hallmark tweetstorms, Trump went off the rails, then turned around and dug them up with a backhoe. The subject of this nine-tweet opus was the economy and his daft notion that the Federal Reserve is conspiring against him to hurt his reelection prospects and bankrupt America. Of course Trump knows something about bankruptcy, having had at least six of his own. However this tirade was utterly preposterous and downright dangerous.

For one thing, Trump (as usual) has no idea what he’s talking about. He’s furious that Fed chairman Jay Powell hasn’t cut interest rates. His reasoning is that the economy is doing spectacularly well and a rate cut would make it even better. However, anyone with any knowledge of monetary policy knows that you only cut rates when the economy is weakening. So maybe Trump is inadvertently admitting something there. What’s more, cutting rates would provide a huge financial benefit to Trump personally, which may be the real reason he’s pushing so hard for it.

Trump began his rant by insisting (again) that “The Economy is strong and good.” He ridiculed the idea that a recession might be imminent, contrary to the analyses of most credible economists. He then accused his critics of being “willing to lose their wealth” to defeat him in 2020. Which is pretty unselfish of them, don’t you think? Following that, Trump whined some more about the Fed and then fired off the big question:

That’s right. Trump thinks that the Chairman of the Federal Reserve, who he appointed, might be a more fearsome enemy of the United States than the leader of a hostile nation that carries billions of dollars of U.S. debt, has a stockpile of nuclear weapons, and a standing army of more than 2,000,000. Of course, this question is easy for Trump because he doesn’t regard Xi as an enemy at all. He has repeatedly referred to him as his friend. Which leaves only Powell as the foe who must be vanquished.

Nevertheless, Trump goes on to demean China (which won’t help with future negotiations) as an outlaw nation and asserts that “We don’t need China and, frankly, would be far better off without them.” Within minutes of that tweet the stock market took a precipitous dive. However, the most disconcerting part of it was Trump’s assumption of dictatorial powers that he definitely does not have:

There is absolutely no authority in the Constitution, or any other legal document, that allows the President to issue such orders. It is, in fact, antithetical to the concepts of democracy and free markets. It’s ironic that this Republican president who bellows incessantly about the dangers of socialism, would make statements that only a communist tyrant (i.e. Xi, Putin, Kim) could embrace. And yet, none of his fellow Republicans have said a word to refute him.

As if to underscore all of this idiocy, Trump went on to demonstrate just how ignorant he is about world affairs and economics. His last tweet in this series bragged that “Our Economy, because of our gains in the last 2 1/2 years, is MUCH larger than that of China.” The last two and half years? The U.S. economy has always been larger than China. This is like trying to take credit for the Sun being hotter than Pluto.

You have to wonder how Trump’s glassy-eyed disciples can continue to back him when he’s gushing out such ludicrous ideas and proposals. His evangelical supporters haven’t condemned his blasphemous Messiah Complex. And now his GOP backers are silent about his authoritarian commandments and his anti-free-market aspirations for control over American businesses. This type of loyalty has a name, and it’s been said before. Trumpism is not, as he calls it, “the greatest political movement in the history of our Country.” It’s a cult! And it threatens every ideal that Americans have cherished for 243 years.

UPDATE: Trump posted a tweet acknowledging the 600+ decline in the Dow, but made a joke out of it because American businesses and investors (including workers and retirees) losing a fortune is just so funny. But more importantly, he added four more tweets in the afternoon wherein he escalated the tariff disputes with China into a full-blown trade war. Enjoy the coming Great Trump Recession, everybody.

How Fox News Deceives and Controls Their Flock:
Fox Nation vs. Reality: The Fox News Cult of Ignorance.
Available now at Amazon.

Blindered Trump Flunky Larry Kudlow Doesn’t See a Recession Now, Or in 2007 Either

Posted by on August 18, 2019 at 11:25 am. 1 Comments :

The past week has generated considerable concern about the state of the economy. And among the most anxious observers is Donald Trump, who knows that his reelection is dependent on being able to tout a positive outlook. However, due to his own ignorance and incompetence, the real world isn’t cooperating. The stock market is down for the third consecutive week. The dreaded “yield curve inversion,” a fairly reliable signal of an imminent recession, took place. And there’s a global slowdown in manufacturing and consumption.

Donald Trump Rally Trash

So how is the Trump White House responding to these warnings that will impact every American? They are sending out their most accomplished liars to peddle utterly false impressions of the health of the economy. Topping that list is Trump’s Director of the National Economic Council, Larry Kudlow. He’s a notorious failure whose record for accurate predictions is almost comical. The President hired him after watching his Trump-fluffing performances on Fox News.

On Sunday morning Kudlow made the news talkies circuit to blatantly mislead the nation about their economic future. His performance was notably ineffective, at least partly because he appeared to be stinking drunk, which the Internet couldn’t help but notice. More importantly, his summary of the rosy scenario that the White House is pitching could not have been more deliberately deceitful. In an exchange with NBC’s Chuck Todd on Meet the Press, Kudlow engaged in this fantasy (video below):

Todd: The private sector seems to be concerned about the trade war with China, that there are some rough waters ahead. Maybe a recession, that those odds have risen. What do you see?
Kudlow: Well, I tell you what. I sure don’t see a recession. […] Most economists on Wall Street towards the end of the week have been marking up their forecasts for the third and fourth quarter. That echoes our view. What we’ve got here, consumers are working at higher wages. They are spending at a rapid pace. They’re actually also saving while they’re spending as an ideal situation. So actually I think the second half of the economy is going to be very good in 2019. No, I sure don’t see a recession.

First of all, it is patently untrue that “most economists on Wall Street … have been marking up their forecasts.” To the contrary, many have been sending up flares to warn of what they see as an inevitable decline. To be sure there are those with more optimistic views, but those types of Pollyannas have always been around just prior to the sky actually falling. Case in point…Larry Kudlow in 2007, who insisted that “The pessimistas were wrong…There’s no recession coming.” That was just a few months before the worst recession in nearly a century:

Kudlow went on to justify his horribly missed call by lying that “Every other forecaster” was saying the same thing. While he was not alone, there were some more accurate predictors, including current presidential candidate Elizabeth Warren. And Warren is cautioning people to be aware of another similar downturn. Some of the indicators are economists’ estimates of third-quarter GDP growth at about two per cent, way short of the four percent that Trump promised. Also, the manufacturing sector is slumping with output that has fallen 0.4 percent in July. Plus, the University of Michigan’s survey-based index of consumer confidence fell sharply in August, reaching its lowest level since 2016.

Meanwhile, Trump is telling his glassy-eyed disciples attending his cult rallies that “You have no choice but to vote for me, because your 401(k), everything is going to be down the tubes. Whether you love me or hate me, you have got to vote for me.” So did Trump just admit that voting for him would result in an economic catastrophe? That would be uncharacteristically honest of him.

Of course, he didn’t actually mean that. He was engaging in his classic brand of fear mongering to make sure his cult followers stay frightened and in line. But the truth is that Trump couldn’t care less about the financial prospects of the American people. He is solely focused on his own interests – either personal finances or reelection – and that is what’s driving everything he does and says. His Deplorables won’t learn that until it’s too late. But hopefully they will be spared that suffering, which can be avoided if citizens come together to vote Trump out or back Congressional efforts to impeach him.

How Fox News Deceives and Controls Their Flock:
Fox Nation vs. Reality: The Fox News Cult of Ignorance.
Available now at Amazon.

Trump is Panic-Tweeting Fox News Denials of Imminent Threat of the Trump Recession

Posted by on August 14, 2019 at 12:13 pm. 3 Comments :

In case you haven’t noticed, Donald Trump has failed at nearly everything he promised to accomplish. There is no wall on the southern border. HIllary Clinton has not been locked up. He has no denuclearization deals with Iran or North Korea, no trade deals with China or Mexico or the EU, no infrastructure bill, and Obamacare has neither been repealed nor replaced.

Donald Trump, Stock Market

The one key issue that Trump has been clinging to for two years is his argument that the economy is booming. Let’s set aside for the moment the fact that that isn’t true. Many critical indicators such as wage growth and job creation are lagging (and trailing Obama’s record). But Trump has been using the stock market as his evidence of a strong economy. That, of course, demonstrates his ignorance of economics. The stock market only reflects the value of equities that are mainly traded by giant financial institutions. It is not a gauge of the economies health.

However, now even Trump’s misapplied measuring stick is biting him in the asinine analyses he’s been peddling. On Wednesday the market has fallen off a cliff, and specifically due to Trump’s ill-considered policies on trade and taxes. And the site of this downturn has thrown him into a tizzy of excuse-making. If he doesn’t have this to brag about, he’s got nothing but his racism left to hold his cult together.

Consequently, Trump unleashed a series of tweets intended to shore up the catastrophic financial news of the day. And they leaned heavily on his top economic advisers at the White House – er, I mean at Fox News. Trump’s Shadow Cabinet was busily papering over the bitter truth that everyone can plainly see. And Trump embraced it frantically for fear of having to take any responsibility. Rest assured that he will greedily steal credit for the economic boom times from 2010 to 2017, during the Obama administration, but blame Obama for the crash of 2019.

The tweetstorm began with a familiar Trump whine: “The Fed has got to do something! The Fed is the Central Bank of the United States, not the Central Bank of the World.” Indeed. And the Fed is doing its job. But that job is not to save the stock market. It is to manage inflation and to promote monetary and financial system stability. Trump only wants the Fed to cut interest rates for his own selfish interests. First, he hopes that it would artificially stimulate further over-exuberance in the stock market, boosting his reelection prospects. And secondly, it would reduce his own interest payments on over $350 million dollars of outstanding variable interest loans.

The next tweet was another Fox News reference wherein they blindly praised Trump’s tariffs saying that “you can’t tell me that it has hurt our economy.” That’s obviously true. Not the part that tariffs haven’t hurt the economy (they have), but the part where he says you can’t tell him that. And you can’t tell Trump that (or anything) either. It’s like yelling a non-existent border wall. He will continue to tell the same lies, even after he’s been proven to have lied.

Trump then tweeted that “Tremendous amounts of money pouring into the United States,” because “People want safety!” That completely contradicts the movement in the markets. Then Trump quote-tweeted another Fox flunky who said that Fed Chair Jay Powell was making mistakes by, among other things, being “data dependant.” Because why would anyone want to rely on actual data to make important decisions? That’s goes against the core philosophy of the Trump Doctrine of Alternative Facts.

LATE ADDITION: Trump squeezed out another couple tweets on this subject in the afternoon. One declared defensively, and without foundation, that “We are winning, big time, against China,” before deciding that “China is not our problem … Our problem is with the Fed.” That led into the second tweet that lashed out at “clueless Jay Powell” and the “CRAZY INVERTED YIELD CURVE!” This was not only a display of Trump’s wildly unbalanced mental state, but further evidence that he doesn’t have any idea what he’s talking about.

How Fox News Deceives and Controls Their Flock:
Fox Nation vs. Reality: The Fox News Cult of Ignorance.
Available now at Amazon.

So as the stock market descends, Trump grasps for support from his State TV fluffers who he knows will always prop him up, no matter how ludicrous and desperately they have to revise reality. There is no coherent argument that justifies Trump’s failures but, fortunately for him, Fox News is adept at spinning lies for any occasion. And the glassy-eyed Deplorables will believe anything that Dear Leader tells them.

Here’s Why Trump is So Obsessed with the FED and Doesn’t Care if the Economy Tanks

Posted by on July 31, 2019 at 3:01 pm. 9 Comments :

For much of his presidency, Donald Trump has been railing against the Federal Reserve Board (FED) for not being a mindless functionary that obeys his every command (like his incompetent Cabinet and the GOP jellyfish in Congress). What he obviously doesn’t understand is that there is a reason that the FED was designed as an independent agency that is insulated from pressure by the White House. Their objectives are often not aligned.

Donald Trump, Stock Market Crash

Trump would very much like to see the FED cut rates because all he is looking for is the short-term stimulative effect that a rate cut has on the stock market. That’s partly because he wants to artificially boost the market in advance of the 2020 presidential election. He often uses the market as a gauge for the health of the economy. That’s a viewpoint that only someone utterly ignorant about these matters could hold. The performance of the stock market only tells you what institutional investors think about the valuation of equities, which fluctuate independent of the broader economy. The economy, on the other hand, is comprised of many other factors such as consumption, employment, wages, trade, and inflation.

Trump has very likely been advised that there are flashing warning signs that the stock market is heading for a significant decline. It is currently in the midst of the longest bull market in history. That isn’t something to brag about. It means we are overdue for a correction. Homes sales, wage stagnation, depressed treasuries, illiquid credit, and the exploding debt, are all indicators that generally forecast a recession or worse.

But Trump doesn’t care about that. He has another motivation for cutting interest rates that is entirely personal. Contrary to his thoroughly bogus branding, Trump is failed businessman who has racked up hundreds of millions of dollars in debt, much of it with variable-rate loans. When he took office in 2017 he was the most indebted president in history, owing more than $350 million to Deutsche Bank alone. That debt is expensive to service. But when interest rates go down, so do the costs of servicing debt. Bloomberg reports that prior rate increases “may raise President Donald Trump’s cumulative cost from the U.S. central bank’s hikes since his inauguration to $6 million per year.”

So Trump has a distinct personal benefit when interests rates decline. That, and the political benefit of artificially (and temporarily) goosing the stock market, makes it wholly inappropriate for him to be battering the FED to lower rates with such ferocity and hostility. Were the FED to buckle to his demands it would leave the nation with no tools to respond when a real economic crisis occurs. That would result in what might have been a mild and manageable correction turning into a full blown recession.

How Fox News Deceives and Controls Their Flock:
Fox Nation vs. Reality: The Fox News Cult of Ignorance.
Available now at Amazon.

As usual, the people who would be hurt most by that would be the lower and middle income families whose savings would deplete and whose jobs would disappear. The rich would suffer a decline in their net worth, but would remain rich and well positioned to profit when the economy turns around. That is a built-in inequity in our economic system that advantages the wealthy by design. And Trump is purposefully exploiting it for personal gain, without the least bit of consideration for the harm it will cause to millions of working Americans.