Trumponomics 101

He’s cutting taxes … again.  No wait … he isn’t cutting taxes!  He’s reversing his trade tariffs.  No wait … he isn’t doing that, either!  Just what the hell is the fool in the Oval Office doing???  Nobody knows, for sure.

Economists have been predicting that the nation will see another recession before the end of 2020.  I am not an economist, but nonetheless put my two cents worth in and say I think it will come by the end of 2019, or at least a harbinger of a recession.  Trump has seemingly believed that his house of cards would stand at least through November 3rd, 2020 … election day.

Well, last week there were some warning signs.  First, Trump’s latest round of tariffs on imports from China sent retailers into a frenzy, with the holiday shopping season on the horizon, and so as the Dow headed south, Trump postponed those tariffs, and the next day all was well once again.  Then, the bond market flashed a warning signal, as the spread between the 2-year Treasury note and 10-year bond inverted for the first time in more than a decade.  That has historically presaged a recession, and so once again the market turned southward, losing about 3% last Thursday.

Trump to his base, the only people who believe a word he says, claimed that …

“Our Economy is very strong, despite the horrendous lack of vision by Jay Powell and the Fed. The Fed Rate, over a fairly short period of time, should be reduced by at least 100 basis points, with perhaps some quantitative easing as well. If that happened, our Economy would be even better, and the World Economy would be greatly and quickly enhanced-good for everyone!”

Oh, wouldn’t it be lovely if the “man” actually had a clue about what he is speaking?

He talks of further tax cuts.  Our national debt and budget deficits are both already at a historic high … and he wants to cut revenue even more???  Where the heck is the money going to come from to keep the government functioning, to pay Social Security checks and pay the military and pay for food stamps, Medicare/Medicaid, etc., etc., etc.???  How will the United States pay its loans?  Has the “man” no sense of how the economy works, how revenue vs expenses work, how a budget works?  Yeah, silly question, isn’t it?  He has no concept … he thinks you have to have an ID to buy groceries.

But it gets even better (where ‘better’ means ‘worse’ in the alternative universe).  Remember back in May 2016, when Trump was hot on the campaign trail and he made this statement …

“People said I want to go and buy debt and default on debt, and I mean, these people are crazy. This is the United States government. First of all, you never have to default because you print the money, I hate to tell you, OK?”

Oh, my aching head!!!  Donnie, Donnie, Donnie … it is NOT that simple!  The money that is printed is expected to be backed up with real assets!  This is not an effing game of Monopoly but is real world economics!

Printing more money will only exacerbate the problem, yet that is precisely what Trump is proposing to offset the market downturn that he swears doesn’t exist.  Or rather, that he believes has been created by his enemy, “the media”.

“The Fake News Media is doing everything they can to crash the economy because they think that will be bad for me and my re-election. The problem they have is that the economy is way too strong and we will soon be winning big on Trade, and everyone knows that, including China!”

print-moneyPeople … sigh … the incumbent does not know what he is doing.  He does not understand how global markets work.  He does not understand how the economy works.  He barely understands how to wipe his patootie.  To my republican friends:  I beg of you, please study this situation, try to understand what your “hero” is doing to not only this nation, but to the world.

Most presidents are not economists.  But then, most presidents hire economic advisors who ARE economists, who DO understand how the world of economics and high finance works, and more importantly, they actually LISTEN to those paid advisors.  Trump is convinced that his “gut” (and there is certainly enough of it) is smarter than all the advisors that WE THE PEOPLE are paying, and he listens to nobody.  Folks … there is a price to be paid for this folly.  We will all pay that price.  Think about it.

52 thoughts on “Trumponomics 101

  1. ‘Money for nothing, and your chicks for free…’ to quote Dire Straits song. The Donald will turn the US into Zimbabwe (given enough time). Devaluing the dollar until you cannot afford to import anything makes you even more dependent on your cruel circus master.

    Liked by 1 person

    • Then, let us not give him enough time! My preference would be that he be ousted immediately, but it looks like I’m going to have to settle for next year’s election, meaning he stays until January 2021, which might actually give him enough time to destroy us all. Sigh.

      Liked by 1 person

  2. Now hold on Jill. You say, and I quote: “The money that is printed is expected to be backed up with real assets!” That has to be a misprint. The money that his worshipful swill wants printed is backed… by real asses. For the record, OK?

    Liked by 1 person

  3. Jill, why are we thinking that trump gives a rat’s ass about Social Security, Medicare, Medicaid, national debt or any social programs that benefit the huddled masses of the USA? The circus master is fleecing the country while lining his own greasy, filthy pockets with money that belongs to the people. Let’s not underestimate his wile and cunning at accomplishing his personal agenda.🙏

    Liked by 2 people

  4. Da Johnny Toilet speaks to hear his own voice, lest he lose it from non-use. What words come out of his mouth are of little consequence to him, as long as he can hear his voice. Still his pets take them to heart, because he is their new saviour, the world according to D’JidioT.
    Should we even listen to him? Obviously not! All his words do is distract from what the write hand is doing, signing executive orders he wants no one to know about till it is too late.
    But we allow ourselves to be fascinated by what he says, because it is so inanely and insanely assinine.
    To listen to him is to listen to a masterful vocal prestidigitator. It is amazing how he can speak out of one side of his mouth without the other side knowing what he is saying.

    Liked by 4 people

  5. Yes Jill, he’s hired supposed experts to advise him. But we all know he wouldn’t listen to them anyway. And if you saw Larry Kudlow on MTP this past weekend…I mean holy crap. That guy has no credibility whatsoever. Frankly, he seemed like he may have had a few shots before he showed up. The chickens are coming home to roost. If the economy takes a dump….he’s done. He’s already blaming everyone else in advance. Only the Trump Cult will believe him.

    Liked by 2 people

    • I recently read that Kudlow does not even have a degree in economics! Ah well … another “perfect fit”, just like DeVos for Sec’y of Education who doesn’t believe in public schools, or Pruitt for EPA who sued the EPA multiple times, or Wheeler now over EPA who doesn’t believe in climate change and is a former fossil fuel lobbyist, or … well, the list is endless. I saw a headline this evening that Kudlow was on some show over the weekend where he was, or appeared to be, drunk. That must be the one you refer to … I must check that out tonight! Trump is absolutely stupid when it comes to the economy … I mean, a guy who has filed bankruptcy 5 or 6 times … isn’t it obvious he has no fiscal sense??? Sheesh. Sigh. BTW … I am working on our project … will email you in the next couple of days.

      Liked by 1 person

    • Nope … instead he has surrounded himself with “yesmen”, boot-lickers who do his bidding. His only criteria for his staff is that they pledge their complete loyalty to him … not to the country, nor the Constitution, but him.

      Like

  6. Pingback: Perception matters more than reality to the US president | musingsofanoldfart

  7. Hello Jill. Grand post. Two things to remember. First tRump stacked the fed thanks to McConnell hold open the fed seats from Obama just like he did the courts. So instead of rotating seats, tRump has already appointed four of the Fed’s five sitting governors. He now has the chance to more fully remake the Fed with two additional open seats.. The other thing important to know is tRump benefits personally from lower rates. He is over mortgaged on his properties. He owes more than he is worth. If the interest rate lowers his payments lower as well. So this whole thing is personal for him, he thinks he is owed loyalty by the Fed, he thinks he gets to dictate the rates, and he thinks he should pay less on his loans. Hugs

    Liked by 3 people

    • All true … never mind the fact that the Federal Reserve Board, like the U.S. Supreme Court, are supposed to be independent from the executive and legislative branch, are supposed to operate outside the bounds of partisan politics. So much for that, huh? Sigh. I still think a “good guy with a gun” is the best solution here. Hugs.

      Liked by 1 person

      • Hello Jill. The good guy with a gun you are talking about is the law enforcement agencies, the military, the system to protect the people and enforce the laws. However as we know sometimes they do not work well, as not all the of them are “good guys”. We must work to strengthen the good and weaken the bad. We can do it, we are seeing it daily in the actions of the progressive democrats. I wish the media would quit doing the both sides do it argument or the be in the center because both sides are not the same and most people are not in the center. Keep the faith, we will come out of this as long as people like you keep telling people what is really happening. Hugs

        Liked by 1 person

        • If only those ‘good guys with guns’ were working out for us, but when the Attorney General, the highest law enforcement official in the nation, declares the president to be ‘above the law’, then perhaps we resort to a different sort. I’m trying to keep the faith, to believe that justice and honesty will ultimately prevail, but quite honestly, Scottie, I am struggling to believe it anymore. I’m seeing what he is doing every day, and he is expanding and solidifying his power in ways that frighten me for the future of this nation. I question, many days, whether I even want to wake up the next day. Sigh. Hugs.

          Liked by 1 person

  8. Jill, Trump is more about perception than reality. Here are a few examples:
    – he beats his chest on his trade and tariff decisions, but they have dampened the global economy of which we are a key part
    – he left the TPP which was designed to compete better with China on trade (note the other ten countries proceeded without us)
    – he claims being tough on immigration and terror, but his travel ban and reduction in legal immigration are dilutive to our economy
    – he touts his tax law, but it borrowed from our future to make pretty good economy a little better for eighteen months or so

    Focusing on another tax cut malfeasance, as was the first one. And, lowering interest rates won’t push a lot of investment as businesses are concerned by the chaos caused by Trump.

    So, Trump is worried about the market and economy retrenching, not recognizing the headwinds he created. Note, for brevity I did not speak to other headwinds – not investing more in renewables, infrastructure, healthcare, etc.

    Keith

    Liked by 2 people

    • PS – I saw a comment about Trump listening to experts, but there are two problems. Neither Kudlow or Navarro are experts and Trump does not listen well anyway. Gary Cohn was more expert, but he left. What also is surprising to me is how little Trump understands about trade and tariffs. Either he does not know or continues to lie about China paying the tariffs.

      Liked by 3 people

      • I truly think that, despite a business degree from Wharton, he is ignorant in the way economies work. His answer to most everything seems to be to bully and browbeat. Perhaps that worked for him in Trump Enterprises, but … global affairs are a bit different. No, Kudlow is certainly no expert, nor are most of his other advisors. As you say, Cohn was intelligent, but like the rest of the smart ones, he left. Who could blame him? I certainly wouldn’t want to stake my entire reputation, my career, on a ‘man’ who is not only ignorant, but cruel. Where, though, does that leave us as a nation? Sigh.

        Like

        • Jill, and now he has offended Denmark with his Greenland banter and has attempted to save face by not going. This serves no good purpose. So, because he decided to make an issue of out of something (in buying Greenland), he now has caused friction. As Ronald Reagan would say “there you go again.” Call me crazy, if he really wanted to buy something, why would he not ask them privately if it was for sale, rather than announcing his intentions on twitter. He says he is this great deal maker, but the evidence is lacking. For example, he conceded two things to Israel without getting anything in return. No wonder they love him. Keith

          Liked by 1 person

          • Yep, I just finished writing my a.m. post partly on that topic … he drove another wedge between the U.S. and an ally. At this rate, we won’t have any friends left! No, Keith, I can’t call you crazy, for you are quite the logician … however, there is somebody else who I truly think is crazy … certifiably so! I see that “Amendment 25” is trending on Twitter today … gee, I wonder why? Trouble is, that would require his toadies to turn on him, and they are too afraid of him to do so. Sigh. (I surely do sigh a lot these days.)

            Like

            • Jill, just to do a quick tally, considering only the last month.

              He offended India by lying about being asked to mediate the discussion between India and Pakistan over Kashmir. Within the hour, the India PM put out an official notice saying no such request was made.

              He continues to offend our five partners in the Nuclear Deal with Iran. They asked him to stay in, his generals asked him to stay in, but he would not listen. So, now we are dealing with potential conflict, maybe all alone.

              He does the Denmark thing, so he now made an issue by tweeting an offer rather than talking with them about it. I mean what better time than to do so on your trip face-to-face.

              Then there are the others relationship issues he has caused before then. Quite simply, if we told our and allied soldiers that 75 years after defeating Germany, that Germany would be the leader of the free world, they would not believed you. By the way Trump said he is “the chosen one,” but I view that has chosen by Vladimir Putin. Keith

              Liked by 2 people

    • Trump’s bullshit is affecting everyone world wide. Last Thursday I was doing landscaping and clean up on a farm in Langley (That’s BC, Canada, not Virginia, USA!) and the “Bear Cat” is was using crapped out – needed a new engine. In comes the mechanic who spends a half hour on the phone trying to locate a 7 HP engine for the machine. Can’t find one anywhere and they should be as common as weeds. So I ordered a new machine. Delivery time? 3 weeks to 3 months. That’s just one little example, it’s total chaos everywhere.

      Liked by 3 people

    • All excellent points, and I’m sure that you and I could write an entire book about his various episodes of malfeasance, not to mention his total disrespect of the office he holds, and disregard for the well-being of both our nation and our planet. I’m surprised that he hasn’t had more pushback from other nations over his total disregard for the environment. And, I just read yesterday, and meant to include it in this post, that Larry Kudlow, Trump’s economic advisor, doesn’t even have a degree in economics! I truly fear we are headed for a meltdown if somebody doesn’t give Trump some sounds advice, and if he doesn’t listen to it.

      Liked by 1 person

    • You’re right … it’s all about the rich getting richer and the poor getting poorer. They throw us scraps, and some are fools enough to lick their boots in thanks. Sigh. I hear that Trump is pouting over the fact that he was told in no uncertain terms that Greenland is not for sale, and thus he has canceled a trip he had planned to Denmark. Ah well … it saves us some money, and I’m sure Denmark is better off without his visit anyway.

      Liked by 2 people

    • Well hello, my dear old friend! So good to see you! He’s not all that hard to understand … he is without compassion or humanitarianism, cares for nobody but himself, is arrogant, greedy, and conniving. He thrives on two things: Power and Money, and will do whatever it takes to get more of both, including breaking the law, being nasty, and stabbing even his “friends” in the back if they are no longer of use to him. He is what I would define as “evil”. What’s more frightening, though, is that some 40% of the people in this nation still support him! What does that say about them?

      Liked by 1 person

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s