Flanked by Treasury Secretary Steve Mnuchin, President Donald Trump holds up a dederal decision permitting-process flowchart for federally funded highway projects in the United States' while speaking following a meeting on infrastructure at Trump Tower, August 15, 2017 in New York City. (Photo: Drew Angerer/Getty Images)
The Megalomaniac and the Stock Market
Trump's ego and his economic team's incompetence not only threaten the stock market, but could tank the whole economy
Trump doesn't want the public to think the stock market has tanked because of Trump's government shutdown, his trade war with China, and the $1.9 trillion increase in the nation's debt caused by his tax cut for corporations and the wealthy. (Actually, these are the major reasons for the market's drop.)
So he's blaming the Fed and its chair, Jerome Powell, for raising interest rates. And he's ordered his staff to find a legal rationale for removing Powell. (It's highly unlikely Trump has legal authority to do this, but like every other illegal thing Trump has tried, it may end up in the federal courts.)
Which is rattling investors even more, because they worry Trump is trying to turn the Fed into his own political tool.
All modern economies depend on public confidence that politicians can't lower interest rates to serve their own purposes - such as getting short-term growth at the expense of long-term inflation and instability. (Which is exactly what Trump wants to do.)
Adding to the panic is Treasury Secretary Steve Mnuchin, who announced today that he called bank executives in order to ensure that markets are functioning properly - an intervention that Treasury secretaries typically make when there's an economic crisis.
Bottom line: Trump's ego and his economic team's incompetence not only threaten the stock market, but could tank the whole economy.
We are at a crossroads
This country and this world are at a monumental crossroads. In a few short weeks, US voters will have an opportunity to beat back the forces of fascism and confront the billionaires who are rigging the economy, our media system, and our democracy, making it increasingly impossible for ordinary people to get by. We’re not just talking about the election. We’re talking about what must be done once these fascist elements are vanquished from power. We need a bolder set of solutions than what either major party has so far been willing to offer and a working-class movement ready to fight like hell for it. Trump didn't emerge from nowhere. The conditions that fueled MAGA authoritarianism were created by decades of radical neoliberal economic policies and a corrupt political system dominated by corporate interests. They slashed taxes on the super-rich, promising that the benefits would trickle down. They said giveaways to the corporate titans would make life more affordable for the rest of us. It was all bullshit. And when a bitter, betrayed populace searches for someone to blame, right-wing demagogues have little trouble finding scapegoats. People know when they're being lied to, but you won't hear any of this from the corporate media. Only independent journalism—powered and funded by people who believe in building a better world—can deliver truly trustworthy daily news. Our Fall Campaign is underway, and we need your help. To power our newsroom through the rest of the year, we need to raise $125,000 by midnight on October 31. So if you share our vision, please contribute whatever you can to sustain our work. |
Trump doesn't want the public to think the stock market has tanked because of Trump's government shutdown, his trade war with China, and the $1.9 trillion increase in the nation's debt caused by his tax cut for corporations and the wealthy. (Actually, these are the major reasons for the market's drop.)
So he's blaming the Fed and its chair, Jerome Powell, for raising interest rates. And he's ordered his staff to find a legal rationale for removing Powell. (It's highly unlikely Trump has legal authority to do this, but like every other illegal thing Trump has tried, it may end up in the federal courts.)
Which is rattling investors even more, because they worry Trump is trying to turn the Fed into his own political tool.
All modern economies depend on public confidence that politicians can't lower interest rates to serve their own purposes - such as getting short-term growth at the expense of long-term inflation and instability. (Which is exactly what Trump wants to do.)
Adding to the panic is Treasury Secretary Steve Mnuchin, who announced today that he called bank executives in order to ensure that markets are functioning properly - an intervention that Treasury secretaries typically make when there's an economic crisis.
Bottom line: Trump's ego and his economic team's incompetence not only threaten the stock market, but could tank the whole economy.
Trump doesn't want the public to think the stock market has tanked because of Trump's government shutdown, his trade war with China, and the $1.9 trillion increase in the nation's debt caused by his tax cut for corporations and the wealthy. (Actually, these are the major reasons for the market's drop.)
So he's blaming the Fed and its chair, Jerome Powell, for raising interest rates. And he's ordered his staff to find a legal rationale for removing Powell. (It's highly unlikely Trump has legal authority to do this, but like every other illegal thing Trump has tried, it may end up in the federal courts.)
Which is rattling investors even more, because they worry Trump is trying to turn the Fed into his own political tool.
All modern economies depend on public confidence that politicians can't lower interest rates to serve their own purposes - such as getting short-term growth at the expense of long-term inflation and instability. (Which is exactly what Trump wants to do.)
Adding to the panic is Treasury Secretary Steve Mnuchin, who announced today that he called bank executives in order to ensure that markets are functioning properly - an intervention that Treasury secretaries typically make when there's an economic crisis.
Bottom line: Trump's ego and his economic team's incompetence not only threaten the stock market, but could tank the whole economy.