Saturday, June 9, 2018

The Trump Dump

Trump just tossed the grenade to implode the RepubliCon party for good. I'm really starting to like this guy...

The G7 summit just wrapped up and the ink wasn't even dry on the official communique, before Trump refuted all of it. He didn't have the sack to disagree in person, so he waited until he was back onboard Air Force One to throw a shit grenade back at his fellow world leaders. Anyways, he was late for his meeting with his twin brother from North Korea. I humbly suggest, this could backfire on Donny. Next, I'll explain why...

Trump's economic accomplishments to date are global trade war, higher interest rates, higher gas prices/Ponzi oil reflation, Emerging Market implosion, record Federal deficit, decade-low savings rate, a stock market sugar rally, and Wall Street deregulation. In his words, "The greatest economy in U.S. history":

Trump's mental health was unraveling going into the meeting, but apparently Macron ripping his arm off at the shoulder sealed the deal. Once he was safely back onboard Air Force One, Trump took a Twitter swipe at Trudeau, because again, the Twinkie-in-Chief didn't have the sack to target Macron and Europe. Then for the icing on the cake he renewed his vow to impose tariffs on auto imports. 

Not that Donny has any knowledge about North American auto production, however, the U.S./Canadian auto supply chains are highly integrated. A Ford F-150 is not made in one country it's made in both. Therefore imposing tariffs on work-in-progress would implode the U.S. auto sector. Which means that short-term at least, Trump was really making a threat to Europe and Japan. 

And that's where this all gets interesting...

On Friday, the casino was gap down overnight due to a selloff originating in Asia and Europe. As usual, the U.S. BTFD team went straight to work. Buying enough Go Daddy to get the S&P back in the green.

Nevertheless, both Europe and Japan were left dangling at the 2016 deja vu levels: