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…
Dow hits 28,000 – FIRST TIME EVER, HIGHEST EVER! Gee, Pelosi & Schitt have a good idea, “lets Impeach the President.” If something like that ever happened, it would lead to the biggest FALL in Market History. It’s called a Depression, not a Recession! So much for 401-K’s & Jobs!
— Donald J. Trump (@realDonaldTrump) November 16, 2019
“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:
The Impeachment Hoax is hurting our Stock Market. The Do Nothing Democrats don’t care!
— Donald J. Trump (@realDonaldTrump) October 31, 2019
All of this impeachment nonsense, which is going nowhere, is driving the Stock Market, and your 401K’s, down. But that is exactly what the Democrats want to do. They are willing to hurt the Country, with only the 2020 Election in mind!
— Donald J. Trump (@realDonaldTrump) October 2, 2019
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.
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