PDJT negativism has changed. The Russian Collusion Hoax is officially dead. The use of this hoax to undermine the Trump Presidency has failed, spectacularly so at times. One can tell the hoax is done because the MSM and Wall Street have switched gears and are now trying to talk the American public into a recession. They know that, if they can succeed at this, then there might be a chance that a Democrat, any Democrat, someone who they could control, could win the Presidency in 2020.
This past week the pundits at the MSM were screaming about “an inverted yield curve” that they said foretold an impending recession. According to them it had not happened since 2007 right before the beginning of the Great Recession. Of course, this was a lie since this had happened last year and no recession has appeared on the horizon. Wall Street took note of the screaming and promptly lost 800 points.
This whole effort is another hoax. It got crushed on Thursday when the economic numbers came out. On Sunday, Peter Navarro, White House Policy Advisor, went on CNN and “discussed” policy with Jake Tapper.
Tapper attempted to identify farmers as victims of the trade war. All of Jake’s “farmer sources” were the equivalent of union bosses. Gary Wertish, who shows up in Tapper’s video clip, is a staunch Democrat. Among his favorites are Sen. Amy Klobuchar and the Minnesota Democrat Farmer-Labor Party.
Agriculture is a long haul proposition loved by those who appreciate the feel of the earth. Those who are good at it don’t expect 40-hour weeks, two-week vacations or annual bonuses for showing up. Farmers back our president as they see him as a long-term player, too.
Then Tapper referred to studies done by left wing think tanks claiming that the American consumer is bearing almost all the burden of the tariffs.
Despite Tapper’s attempts to talk over him, Navarro displayed the patience of Job. He was unflappable, calm and concise. As one might with a student in an elementary economics class, Navarro led Tapper through the data showing him the real world.
Navarro pointed out that the curve was essentially flat. He also pointed out that the US economy was the strongest in the world and that moves made by other countries were actually strengthening our position.
Let’s look at the numbers again. As Sundance at CTH notes,
Note that the rapid influx of capital occurred right around the time that the EU was announcing that NEGATIVE interest rates on bonds (-0.65% on German bonds, e. g.) in Europe would be continuing for the foreseeable future.
Perhaps the strongest indicator here against a recession is the inflation rate. It has been around 1.4% for an extended period of time. And, as the President noted Sunday before getting on a plane,
“… We have the strongest economy, by far, in the world. The tariffs have cost nothing, in my opinion, or certainly very little. We have import prices from, and through, July — all the way through July. And they’re down 1.8 percent(emphasis added) so that the import prices have actually gone down.
China is eating the tariffs because of monetary manipulation. And also, they’re pouring a lot of money into their country because they don’t want to lose jobs. They’re losing, as you probably know, because you reported it, but they lost over 2 million jobs in a short period of time. And they want to make a deal; we’ll see what happens. But they definitely want to make a deal.”
Most economic experts would tell you that tariffs are a form of taxation. And I agree with that. However, it is not the American consumer who is paying the tax. If that were so, inflation would be much higher. In fact, the exact opposite is happening. Because the Chinese and EU currency devaluations hit all imports, including non-tariff products, we are actually importing deflation. It is China, et al, who are paying the tax.
This is all in accord with the economic plan laid out by the administration in 2017.
MAGA