As the stock market took a steep plunge today as investors finally realized the fiscal toll Trump’s trade wars, tax cuts for billionaires, and lack of a coherent economic policy were taking on the world economy, Donald Trump furiously attempted to reclaim his phony narrative that his economic leadership is creating the greatest American economy ever, one tweet at a time.
Trump continued to attack China for their trade policies today while ignoring their massive human rights abuses — abuses that have put up to a million Muslim Uighurs living in its Xinjiang Autonomous Region in “re-education camps” and may soon result in People’s Army troops invading Hong Kong to quell that supposedly independently-governed city’s freedom-loving residents’ protests for democratic reforms.
Trying to paint his imposition of tariffs on Chinese goods —that are ultimately paid for by U.S. consumers in what amounts to a surreptitious tax hike — as a success that has hurt China’s economy more than our own, Trump tried to mislead, cheerlead, and finger point his way out of responsibility for the looming recession.
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..Spread is way too much as other countries say THANK YOU to clueless Jay Powell and the Federal Reserve. Germany, and many others, are playing the game! CRAZY INVERTED YIELD CURVE! We should easily be reaping big Rewards & Gains, but the Fed is holding us back. We will Win!
— Donald J. Trump (@realDonaldTrump) August 14, 2019
As usual, one must pick apart Trump’s tweets for their falsehoods and omissions of crucial data.
While some U.S. companies may have cut back on moving jobs to China because of Trump’s tariffs, they are moving those jobs not back to the U.S., but to other low-labor-cost countries like Vietnam and Bangladesh, often with the same Chinese companies that have been their off-shore manufacturers simply opening a new assembly line in a country not currently subject to Trump’s tariffs.
In fact, despite a massive corporate tax cut that Republicans swore would lead to massive new capital investments and bountiful new jobs from American corporations in its wake, the International Monetary Fund found that the tax cuts have had little direct impact on business investment decisions because of the consolidation of market power — and the decision to use the tax savings to simply prop up their share prices through stock buybacks that raise the value of their senior management’s stock option compensation.
Rather than take responsibility for the failure of his poorly conceived economic policies to deliver is promised results, Trump renewed his attacks on the Federal Reserve and its chairman Jerome “Jay” Powell — a Republican appointed by Trump himself — as the source of blame for the current “CRAZY INVERTED YIELD CURVE!” that his driven stock markets lower with its track record of predicting major economic downturns.
Yes, according to Trump, America should trust the financial acumen of a businessman with a history of bankruptcies and corrupt, failed businesses — not to mention improper capitalization — over the expertise of respected macroeconomic specialists with years of experience and actual knowledge of the field.
Trump promises victory, but the promises of a proven con artist aren’t worth the pixels that they occupy on your screen.
We need competent and intelligent leadership at this difficult juncture to which Trump has delivered us.
Instead, we’re saddled with a president who declares loudly that the buck stops over there…or there with that other person…or maybe those people over there…anywhere but with himself.
Follow Vinnie Longobardo on Twitter.