Friday, August 23, 2019

Madman Across the Water

Trump is insane, of course, but you already knew that:

Stocks finished a volatile trading day sharply in the red Friday, after a selloff driven by President Donald Trump's response to new retaliatory tariffs from China and Fed policy.

The Dow (INDU) dropped more than 700 points at its worst, closing down 2.4%, or 623 points. The S&P 500 (SPX) and the Nasdaq Composite (COMP) finished 2.6% and 3% lower, respectively.

It was the worst day for stocks since August 14. All three indexes had been on track to break a three-week long losing streak at the start of the day, but the selloff didn't allow for that. It was the fourth down-week in a row for all three, according to Refintiv.

Prior to the market open, China announced new retaliatory tariffs that will impact $75 billion worth of US goods and range from 5% to 10%. The tariffs will also include US oil imports. On top of that, China will resume its 25% tariffs on US car imports. The move was the latest escalation in the ongoing US-China trade war.

Trump has also issued an edict to the businesses of America:

Let’s parse that statement a little more closely. Trump wrote:

“Our great American companies are hereby ordered…”

Who the fuck are you again?

Trump could declare himself the Pope, the high priest, the grand Poobah, the Emperor, and even el jefe and it wouldn’t mean a blessed thing. There is no order that he can issue to a private American company.

Now, if Congress declares war on another nation, and grants the president the authority to reorganize the private sector in order to fight that war, there is a precedent for that. What we don’t have is much of a precedent for the lunacy we are now witnessing on a daily basis. The closest we have would be Nixon, steadily losing his mind during Watergate, and inspiring this description.

Trump has lost his mind, and we all know it. There is a deluded cabal keeping him in whatever configuration allows him to cripple America’s trade with China and cost American consumers and companies untold billions of dollars with his flights of dictatorial fancy.

God help us all.

No comments:

Post a Comment