I've said all along, the choice is between humility or humiliation. The latter path was chosen. Rule #1: Never go FULL Trump...
History will not be kind to the Carnival-Barker-in-Chief:
All of Trump's lies are coming home to roost as he is learning the lesson every toddler learns the hard way - that the "strategy" of ever-larger lies ends very badly. Trump's economic con job is collapsing in real time. But unfortunately he was far too successful in convincing the 'C' students at the Fed, who are among his true believers in the "greatest economy of our lifetimes". Now he is trapped by his own lie, unable to explain why a strong economy needs a massive reduction in interest rates.
This week he is coming unhinged ahead of the Fed's Jackson Hole Summit on Friday. Most of this is barely literate much less coherent. The second post regarding Germany is particularly batshit crazy, on par with his entire presidency. The "strongest dollar in history" comment is a blatant lie.
"Strongest dollar in history"
The (relatively) strong dollar drives inflows into U.S. financial assets. The reversal of which will not be kind to true believers in non-stop bullshit.
What changed in the past week is that a week ago Trump blinked in the trade war with China. Now the blood is in the water. Wall Street is no longer willing to back the de facto loser. Article after article after article explains how Trump lost the trade war. The realization has arrived that Trump is playing checkers against an opponent playing chess. Trump over-played his hand by listening to Peter Navarro at the expense of everyone else on his economic team:
"The average American household will be down $1,000 per year thanks to the newest round of tariffs on Chinese goods, according to J.P. Morgan."
The fact remains that were it not for 4% borrowed GDP, the U.S. would already be deep in recession. Which is why the only stocks making new highs right now are momo junk and recession stocks. Led of course by the Keynesian bombing of foreigners - primary beneficiary of mega deficits:
Nevertheless, the myth of the "strong consumer" lives on in the minds of con men desperate to make the quarter:
Trust proven con men at your own risk
And prepare for the hardest landing
