US Politics in Trump era
Millennials are doing far worse financially than generations before them, with student loans, rising rents and higher health-care costs pushing the average net worth below $8,000, a new study shows. The net worth of Americans aged 18 to 35 has dropped 34 percent since 1996, according to research released Thursday by Deloitte, the accounting and professional services giant.
Despite ongoing attacks from pro-business Republicans, there is data indicating that President Obama has a sterling, possibly incomparable, record regarding economic growth policies. The reports states that economic performance is directly related to policies enacted by the president and Obama deserves all the credit for that.
Employers added 304,000 new jobs to the US economy in January — once again surpassing economic forecasts, according to the latest jobs report from the Bureau of Labor Statistics. However, the latest jobs report once again shows little wage growth, which remains the biggest weakness in the American economy. The average US worker hasn’t seen their paycheck get much bigger since the Great Recession, which ended around 2009.
The US Census Bureau just dropped its annual load of statistics on American poverty and income, and the data shows that 2017 was a good year for many Americans, and not-so-great for others. On the upside: 2.4 million more people snagged full-time jobs, the median household income ticked up, and poverty rates dropped slightly. The bottom 10 percent of US households — earning an average income of $14,219 — saw their incomes fall slightly compared to the previous year, adjusting for inflation.
President Trump said on Tuesday that Chinese manufacturing would “crumble” if the country did not agree to the United States’ trade terms, as newly released data showed his trade war was washing back to American shores and hurting the factories that the president has aimed to protect.
President Trump accused China and the European Union of manipulating their currencies and continued to criticize the Federal Reserve for raising interest rates, saying those moves are putting the United States at a disadvantage. His comments once again break with longstanding White House norms, in which American presidents tend to talk sparingly about the United States dollar and, when they do, generally reiterate that a strong dollar is in the national interest.
The layoffs have stunned these steelworkers who, just a year ago, greeted President Trump’s election as a new dawn for their industry. Mr. Trump pledged to build roads and bridges, strengthen “Buy America” provisions, protect factories from unfair imports and revive industry, especially steel.
For the duration of this economic expansion, consumer spending has been the dynamo driving growth in gross domestic product, or GDP. But now there are indications Americans are getting a little too dynamic. Their actions are out of whack. For the past two years, spending has risen faster than disposable personal income, as pointed out by Jason Furman, a senior fellow at the Peterson Institute for International Economics
The American economy is slowing, dragged down by trade tensions and weak growth overseas. But there are few signs that the decade-long expansion is on the verge of stalling out.Gross domestic product, the broadest measure of goods and services produced in the economy, rose at a 2.1 percent annual rate in the second quarter, according to preliminary data released by the Commerce Department on Friday.
When the Trump administration first imposed tariffs on $34 billion in Chinese imports in July, Andy LaFrazia figured it was just another curveball for his company. “Everyone was saying: ‘Oh, it’s a negotiating tactic. It won’t last long,’” Mr. LaFrazia recalled. But nearly a year later, the trade war shows no sign of cooling off. Evidence is mounting that the conflict has taken an economic toll.
Economic growth surged in the second quarter — but don’t expect the boom to last. The second-quarter acceleration was widely anticipated by economists, a result of a confluence of events unlikely to recur. Most economists expect growth to slow in the second half of the year. Still, recent data does suggest that the pace of growth has picked up this year.
The Federal Reserve kept interest rates steady on Wednesday and signaled that it may not raise them again anytime soon, a surprising reversal from last month, when the central bank indicated it expected to continue raising rates in 2019. In a statement following a two-day meeting of its policymaking committee, the Fed said that economic growth remained “solid,” and that it expected growth to continue.
The US posted a record budget deficit in the month of February, according to a new report form the Treasury Department. The budget deficit for February came in at $234 billion, according to the Treasury, higher than the previous monthly record of $231.7 billion set in 2012. The deficit was also 8.7% higher than the $215.2 billion deficit posted in February 2018.
There's mounting anecdotal evidence that President Donald Trump's trade war is causing trouble for the US economy and businesses. But Friday's report on third-quarter gross domestic product may be the best hard evidence yet that the tariffs are causing major disruptions in the economy.
America’s carbon dioxide emissions rose by 3.4 percent in 2018, the biggest increase in eight years, according to a preliminary estimate published Tuesday. Strikingly, the sharp uptick in emissions occurred even as a near-record number of coal plants around the United States retired last year, illustrating how difficult it could be for the country to make further progress on climate change in the years to come, particularly as the Trump administration pushes to roll back federal regulations that limit greenhouse gas emissions.
Trump’s economy is not the best ever. In fact Obama added almost one million more jobs than Trump over the same timeframe. Trump entered office on January 20, 2017, and starting with February 2017 he has been President for 29 months. Total job growth during that time has been 5.613 million or 194,000 per month with those results being helped by the tax cut. Working back from January 2017, Obama’s last month in office, there had been 6.423 million jobs added or 221,000 per month. The difference for the 29 months is 810,000 more jobs or 27,000 more per month than Trump.
The last time that Congress approved a sweeping overhaul of the federal tax code, in 1986, it created a tax credit meant to encourage the private sector to invest in affordable housing. It has grown into a $9 billion-a-year social program that has funded the construction of some three million apartments for low-income residents.But the Republican tax plan approved last month amounts to a vast cutback, making it much less likely that such construction will continue apace.
A major scientific report issued by 13 federal agencies on Friday presents the starkest warnings to date of the consequences of climate change for the United States, predicting that if significant steps are not taken to rein in global warming, the damage will knock as much as 10 percent off the size of the American economy by century’s end.
President Trump on Tuesday confirmed that he is considering whether to push for a temporary payroll tax cut amid mounting concerns about an economic slowdown. Trump’s comments pulled back the curtain on a freewheeling policy process within the White House. Senior administration officials are both trying to assess the real weaknesses in the economy while also determining whether they should take any steps to intervene before the 2020 elections.
Exasperated over the market plunge, Trump asks advisers whether he can fire Federal Reserve Chairman Jerome Powell
President Trump has asked internal and external advisers about whether he can fire Federal Reserve Chairman Jerome H. Powell, two people familiar with the exchanges said, in a sign of his mounting frustration with the central bank chief. News of Trump’s discussions about Powell prompted rebukes from lawmakers and alarm among economists and Wall Street executives Saturday
Thousands of teachers in Oklahoma and Kentucky walked off the job Monday morning, shutting down school districts as they protested cuts in pay, benefits and school funding in a movement that has spread rapidly since igniting in West Virginia earlier this year.
Thanks to Donald “I’m the King of Debt” Trump, our federal government’s debt is rising much faster than under President Barack Obama despite Trump’s frequent assertions that the economy is much better now that he is in the White House. And that $300 per month of added debt you owe via our Uncle Sam is scheduled to grow and grow.
Donald Trump keeps boasting about what a great economy he should get credited for creating. But his administration’s own reports don’t support his claims, which also don’t come close to what he promised voters. His results so far have been, well, just average.
Excellent article, discusses the role and power of the president in pressuring businesses to do the right thing for the American people. It points out that Obama has used those powers to influence businesses in certain areas like pay hikes but refused to do that when it came to outsourcing.
Trump says he will impose new tariffs on $300 billion of imports from China starting next month, ending brief cease-fire in trade war
President Trump unexpectedly announced on Thursday that he will impose new tariffs on $300 billion worth of imports from China, effectively taxing every product that Americans buy from China. The president acted one day after Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert E. Lighthizer wrapped up two days of talks in Shanghai aimed at a comprehensive trade deal.
We’ve hated this market of late and advised investors to sell. Emerging markets in general and China, in particular, did better than US stocks, but that’s small consolation. Today’s ill wind blew nobody good but owners of government bonds. There are lots of political reasons for the market to plunge, but there is also an important vulnerability: Most of the profitability among US corporations is concentrated in a very small number of names.
The U.S. saw its highest level of layoffs in a first quarter since 2009, data from staffing firm Challenger, Gray & Christmas released Thursday showed.By the numbers: Employers cut 190,410 jobs in the first 3 months of the year — 10.3% higher than the number of layoffs announced in the fourth quarter of 2018 and 35.6% higher than job cuts announced in the same quarter of 2018.
Ahead of the G-20 summit, Japan and the European Union are expected to announce a trade deal on Thursday in yet another sign that President Donald Trump’s “America First” approach to trade and policy isn’t paying off. Creating a free trade area the size of North America, the deal will greatly expand global trade. Expected to lower barriers to the exportation of cars between Japan and the European bloc, the agreement will also reportedly allow for the import of trains and agricultural products to Japan specifically.
Mr. Trump and his team believe that loosening the regulatory grip on business will help the economy, create jobs and allow Americans “to share in the riches,” as he said during the campaign. But in the energy field, environmentalists, Democrats and even some in the industry fear the efforts will backfire, harming health and safety without creating much economic benefit.
The press needs to do its job, not the voters’ job. The first 30 minutes was called for Trump in the debate. Eventhough the author agrees that stylistically this was Trumps' best portion of the debate, factually it was his worst. He was wrong on NAFTA, trade, jobs.
On the campaign trail, Trump had spoken often about the importance of investing in infrastructure. Yet the president-elect had apparently failed to appreciate that the government would need to come up with hundreds of billions of dollars to fund his plans. Cohn, brash and bold, wired to attack any moneymaking opportunity, pitched a fix that would put Wall Street firms at the center: Private-industry partners could help infrastructure get fixed, saving the federal government from going deeper into debt.
The staggering rate of store closures that has rocked the retail industry over the past couple of years is expected to continue in 2019, with roughly the same level of closures expected this year. Retailers closed a record 102 million square feet of store space in 2017, then smashed that record in 2018 by closing another 155 million square feet, according to estimates by the commercial real-estate firm CoStar Group.
President Trump escalated his unprecedented attacks against America’s central bank Friday, calling Federal Reserve Chair Jerome H. Powell an “enemy” of the United States that is as bad as China, a tweet that triggered a stock market slide and came minutes after Powell vowed to keep the economy growing.
The Federal Reserve this week is all but certain to cut interest rates despite unemployment being at historic lows, a highly unusual action that is shaping up to be the biggest gamble of Fed Chair Jerome H. Powell’s brief tenure as leader of the world’s most powerful economic institution. Some economists, Fed officials and people on Main Street say the Fed’s action will benefit the stock market more than the real economy. And they argue cutting rates would introduce risks that could worsen the next downturn.
Fears are rising about the state of the world’s biggest economies, with China posting its worst annual growth in decades and the United States injecting more uncertainty with tariffs and a lengthy government shutdown. China reported Monday that its economy expanded at 6.6 percent last year — a figure that would be good for many countries but represents the slowest growth for China in 28 years.
Blue-collar jobs are growing at their fastest rate in more than 30 years, helping fuel a hiring boom in many small towns and rural areas that are strong supporters of President Trump ahead of November's mid-term elections. Jobs in goods-producing industries — mining, construction, and manufacturing — grew 3.3 percent in the year preceding July, the best rate since 1984, according to a Washington Post analysis.
Rising prices have erased U.S. workers’ meager wage gains, the latest sign strong economic growth has not translated into greater prosperity for the middle class and working class. Cost of living was up 2.9 percent from July 2017 to July 2018, the Labor Department reported Friday, an inflation rate that outstripped a 2.7 percent increase in wages over the same period.
In ominous signs of the damage being done by the trade war between China and the United States, data released on Wednesday indicated that the German economy was hurtling toward recession and that growth at Chinese factories was slowing at a pace not seen in nearly two decades.
President Trump is inciting a trade war, undermining NATO and painting Europe as a foe. It’s no wonder, then, that the European Union is looking elsewhere for friends. On Tuesday in Tokyo, it signed its largest trade deal ever, a pact with Japan that will slash customs duties on products like European wine and cheese, while gradually reducing tariffs on cars. The agreement will cover a quarter of the global economy — by some measures the largest free-trade area in the world — and is the latest in a string of efforts either concluded or in the works with countries like Australia, Vietnam and even China.
The Federal Reserve cut interest rates for the first time in more than a decade on Wednesday as it attempted to guard the record-long economic expansion against mounting global risks. The widely expected quarter-point move, the Fed’s first since it cut rates to near zero in 2008, is meant to protect the economy against the potentially harmful effects of a growth slowdown in China and Europe and uncertainty from President Trump’s trade war.
America’s federal deficit will expand by about $800 billion more than previously expected over 10 years due primarily to two legislative packages approved this year, pushing the nation further into levels of debt unseen since the end of World War II, the Congressional Budget Office said Wednesday. The CBO also said that the impact of higher trade barriers, primarily President Trump’s trade war, could hurt economic growth amid widespread fears of a recession.
When President Trump imposed tariffs on steel imports in June, Richard Lattanzi thought of dozens of his fellow steelworkers who have for years put off badly needed repairs of their cars and homes. “There was a lot of excitement here; there were a lot of us saying, ‘It’s about time someone is looking out for us,’ ” said Lattanzi, the mayor of this town of 7,000 and a safety inspector at the U.S. Steel plant in nearby West Mifflin. “A lot of people around here were saying, ‘We’re going to be okay.’ ”
The average hourly wage paid to a key group of American workers has fallen from last year when accounting for inflation, as an economy that appears strong by several measures continues to fail to create bigger paychecks, the federal government said Tuesday.
Gary Cohn, who served as Trump's director of the National Economic Council but left amid a rift over the president's trade policies, said that retaliatory tariffs between countries could drive up inflation and prompt American consumers to take on more debt, possibly pushing the country into another economic downturn.
Jack Ma, founder and chairman of Chinese retail giant Alibaba, says the company no longer plans to create 1 million jobs in the United States in the wake of the ongoing trade conflict between the U.S. and China.
The $1.5 trillion tax overhaul that President Trump signed into law late last year has already given the American economy a jolt, at least temporarily. It has fattened the paychecks of most American workers, padded the profits of large corporations and sped economic growth.
Stock markets tanked Wednesday after the bond market sounded a loud warning that the U.S. economy might be headed toward a recession. Investors are spooked by a scenario known as the “inverted yield curve,” which occurs when the interest rates on short-term bonds are higher than the interest rates paid by long-term bonds. What it means is that people are so worried about the near-term future that they are piling into safer long-term investments.
President Donald Trump has repeatedly pointed to the stock market as one of the best ways to measure his administration’s policies. During Trump’s presidency, the S&P 500 has gained 25% from inauguration day through August 15. How does that stack up to stock performance at the same point in other modern presidencies? (647 trading days, to be exact).
Investors take for granted that the Federal Reserve controls interest rates. But a surprisingly lively couple of days in short-term money markets has meant that the “how” became nearly as important as the “why.” The stress started on Monday in the market for repurchase agreements, or repos. Repos are short-term loans mainly used by banks and hedge funds in their daily bond trading and brokerage businesses.
Cheaper mortgages are usually a boon to the housing market. But this year, a sharp drop in mortgage rates hasn’t provided much of a lift, and that could bode poorly for the Federal Reserve’s efforts to shore up economic growth.
For stock investors in the United States, the political and economic outlooks have suddenly become ominous. More volatility could be in store this week. “The fact is that politics is driving the economy to an extent that is very atypical,” said Julian Emanuel, chief equity and derivatives strategist at BTIG, an institutional brokerage firm. “We would say probably to the greatest extent that we’ve seen in our investing lifetime.”
The bond market’s yield curve is perilously close to predicting a recession — something it has done with surprising accuracy — and it’s become a big topic on Wall Street. Some economists on Wall Street think the economy could be growing at around a nearly 5 percent annualized clip this quarter. But if the current economic vigor is only reflecting a short-term stimulus coming from the Trump administration’s tax cut, then some kind of slowdown is to be expected.
Republicans sold the 2017 tax law as “rocket fuel” for American investment and growth, saying that corporations — flush with cash from lower tax rates — would channel money back into the economy by building factories and offices and investing in equipment, which would help companies grow and provide winnings for workers. But, so far, hard evidence of such an acceleration has yet to appear in economic data, which show more of a steady investment roll than a rapid escalation.
President Trump promised that his tax cut would encourage companies to invest in factories, workers and wages, setting off a spending spree that would reinvigorate the American economy. Companies have announced plans for some of those investments. But so far, companies are using much of the money for something with a more narrow benefit: buying their own shares.
In a TV interview with Greg Hayes, the CEO of United Technologies stated that reasons for keeping jobs in Indiana was government contracts,prospect of favorable regulations. He also said that Mexican workers are 80% cheaper and more dedicated. Furthermore UTC believes that with automation they can stay competitive in the US which will still result in job loss for US workers.
President Donald Trump’s ability to cheaply finance ambitious policy goals like tax cuts and infrastructure development may be undermined by the sudden drop in foreign creditors purchasing American Treasuries.
As the White House staff tries to put together a budget for President Donald Trump, they face a fundamental problem. Trump has promised to cut taxes, increase spending on the military and infrastructure, and avoid cuts to Social Security and Medicare. The only way to do that without producing an exploding budget deficit is to assume a big increase in economic growth. And Nick Timiraos at the Wall Street Journal reports that Trump is planning to do just that — by making things up.
President-elect Donald Trump intends to launch a broad legislative agenda that includes cutting taxes, rolling back the Affordable Care Act, growing the military and rebuilding the nation’s infrastructure. The question is how congressional Republicans, after eight years of apocalyptic warnings about the growing national debt, will respond to the dire fiscal implications of proposals that would likely send the deficit soaring.
As director of the National Economic Council, Kudlow will have a sizable influence on U.S. economic policy, including issues related to energy as well as domestic and international climate policies. Cohn, in his tenure as director, worked to keep the Trump administration from leaving the Paris climate agreement. Kudlow, with his history of climate denial, is unlikely to be similarly concerned with climate action.
Global debt has hit another high, climbing to $247 trillion in the first quarter of 2018, according to a report published Wednesday. Of that figure, the non-financial sector accounted for $186 trillion.. “Firms have used artificially low rates to borrow in the capital markets and only buy back stock in the equity market,” LaVorgna said. “The inherent instability of debt over equity financing suggests that the next downturn could hit investment spending unusually hard.”
General Motors announced Monday that it planned to idle five factories in North America and cut roughly 14,000 jobs in a bid to trim costs. It was a jarring reflection of the auto industry’s adjustment to changing consumer tastes and sluggish sales. The move, which follows job reductions by Ford Motor Company, further pares the work force in a sector that President Trump had promised to bolster.
The company said on Tuesday that it would instead invest $700 million to increase production in Michigan. The CEO says the reason is because of market demands. They didn't see the demand for the cars they wanted to build in Mexico, so staying in the US was a business decision. He also said that he is encouraged by the pro growth policies signaled by the Trump administration.
The labor market the United States is experiencing right now wasn’t supposed to be possible. Not that long ago, the overwhelming consensus among economists would have been that you couldn’t have a 3.6 percent unemployment rate without also seeing the rate of job creation slowing (where are new workers going to come from with so few out of work, after all?) and having an inflation surge (a worker shortage should mean employers bidding up wages, right?).
It is true that the global economy is sputtering, and that the stock market is in its worst pullback in a decade, with the Standard & Poor’s 500 index down more than 19 percent since Sept. 20 as of Monday’s close. But this sense of gloom and pessimism has gotten ahead of the facts on the ground, especially concerning the United States economy.The real risk is not that insurmountable challenges knock the economy off course. It is that poor leadership converts moderate economic shocks into a crisis.
So what is the most honest way of talking about the Trump economy? It goes like this: The president inherited an economy that had come a long way toward healing. During his administration, the economy has continued growing at about the same rate it did before he took office, pushing incomes, employment and output to yet higher levels. There are plenty of problems that remain in the United States, economic and otherwise, and the degree of credit the president deserves for the state of the economy is an open debate.
Left-leaning economists hate the timing and the composition. But the expansionary fiscal policy they sought is on the way. The fiscal austerity that drove the budget deficit from around 9 percent of G.D.P. in 2010 to 3 percent in 2016 has, for practical purposes, been abandoned. First, Republicans passed a $1.5 trillion tax bill in December that sharply cut rates on businesses. Then last week they made a deal to undo budget caps demanded by the Republican House in 2011. President Trump signed that bill on Friday.
The latest report was a disappointing showing that will stoke fears the economy is softening as the Trump administration’s trade war with China and potentially Mexico escalates. The Federal Reserve has signaled that it would consider a rate cut in the event of economic weakness, and May’s data is likely to be an important factor in their decisions.
Donald Trump put forward his most detailed economic blueprint, promising significantly stronger economic growth to offset the steep price tag of proposed tax-rate cuts and new infrastructure and defense spending. Advocates of balanced budgets have reacted cautiously to proposals, such as Mr. Trump’s that would cut taxes and boost defense and infrastructure spending without specific measures to avoid higher deficits if growth doesn’t materialize.
Low-, middle- and high-skilled jobs all saw some wage growth. Even so, the job market can vary radically depending on what people do and where they live. “In some occupations — typically those with low-skill requirements and relatively pleasant working conditions — there is a huge oversupply of candidates,” said Julia Pollak, a labor economist at the online employment market site ZipRecruiter.
Potential perils are in plain sight: An intense and unpredictable tariff battle is alarming businesses across the country. The annual federal deficit is heading toward $1 trillion. Credit card debt is soaring. And the synchronous wave that lifted every world economy at the year’s start has dissipated. So what? Such risks have done little to puncture the exuberant optimism that is encouraging American businesses to ramp up hiring and consider new investment.
Ford will be making cuts to its 70,000-strong white-collar workforce in a move it calls a "redesign" of its staff to be leaner, have fewer layers, and offer more decision-making power to employees, the company announced.
U.S. and Saudi Arabian companies signed business deals worth tens of billions of dollars on Saturday during a visit by U.S. President Donald Trump, as Riyadh seeks help to develop its economy beyond oil. National oil firm Saudi Aramco said it signed $50 billion of agreements with U.S. firms. Energy minister Khalid al-Falih said deals involving all companies totaled over $200 billion, many of them designed to produce things in Saudi Arabia that had previously been imported.
The pledge calls for a clear commitment to a far different course. Major elements include rebuilding America while guaranteeing the right to a job. Public investment—modernizing a dangerously decrepit infrastructure—is the centerpiece of the jobs and growth agenda, not trickle-down tax cuts that only add to inequality. That investment should be focused in part on the transition to a sustainable green energy economy. Meeting the clear and present security threat posed by catastrophic climate change can be the greatest source of jobs and innovation since the move to the suburbs after World War II.
President Donald Trump’s trade war is already prompting farmers and agricultural forecasters to plan for a dismal 2019 growing season before the fall harvest is complete. Trade disputes — namely the escalating feud with China — have weighed on commodity prices and the president has threatened to ratchet up tariffs rather than ease tensions come Jan. 1. To boot, ordinary business costs like fertilizer and fuel appear to be on the rise, further squeezing bottom lines.
Six in 10 Americans expect a recession and higher prices as Trump’s approval rating slips amid concern over his trade policies
President Trump is ending a tumultuous summer with his approval rating slipping back from a July high as Americans express widespread concern about the trade war with China and a majority of voters now expect a recession within the next year, according to a new Washington Post-ABC News poll.
A mere fortnight after becoming President-elect, Donald Trump’s tariff threat gained a tactical victory in the battle to keep American jobs at home.Trump announced via Twitter that Ford Motor Company intentions to transfer SUV production south of the border were shelved. Chairman Bill Ford “advised me that he will be keeping the Lincoln plant in Kentucky - no Mexico,” Trump tweeted last Thursday.
The middle class, which Pew defines as two-thirds to two times the national median income for a given household size, began to grow after World War II due to a surge in economic growth and because President Franklin Delano Roosevelt’s New Deal gave workers more power. Before that, most Americans were poor or nearly so.
At least two major companies that publicly announced large bonuses for their employees after the passage of a massive GOP-led tax overhaul — which represented a windfall for wealthy Americans and big corporations — quietly laid off hundreds of workers at the same time. Comcast laid off more than 500 sales employees right before Christmas, AT&T is also in the process of laying off thousands of employees,
In small but politically significant ways, the economy under President Trump has favored regions and constituencies that supported him in 2016. These are the men and women whom Trump called forgotten Americans.
The thousands of telecommunications jobs President-elect Donald Trump claimed Wednesday that he was bringing back to the United States were part of a previously announced investment deal between Sprint and its main funder, SoftBank. "5,000 jobs announced today are part of the 50,000 jobs that [SoftBank CEO Masayoshi Son] previously announced. It will be a combination of newly created jobs and bringing some existing jobs back to the U.S," a Sprint spokeswoman said in a statement to Politico, after Trump made his announcement to the press.
Big companies drove Donald Trump’s tax cut law but refused to commit to any specific wage hikes for workers, despite repeated White House promises it would help employees, an investigation shows. The 2017 Tax and Jobs Act – the Trump administration’s one major piece of enacted legislation – did deliver the biggest corporate tax cut in US history, but ultimately workers benefited almost not at all.
The laws of Trumponomics, after all, are more about resentment and victimhood than stirring animal spirits. And no woe-is-America narrative is more pervasive in the Trump era than China “raping” the US workforce and “stealing” growth from Washington. An undervalued yuan is a pillar of this theory. It’s “killing us,” as Trump likes to say. Expect Trump’s ire to increase as the yuan weakens past 7 to the dollar – from today’s 6.96 – thanks to PBOC largess. That might provoke him to ratchet up the trade war.
In the past few days, new economic reports have come out that don’t paint a very rosy picture for a number of economic items. While GDP hit 4.1% for the June quarter, but only 2.9% year over year, and the unemployment rate is hovering at all-time lows, inflation continues to increase, real wages are stagnant and the federal budget deficit is ballooning