Please consider Trump ‘Not Ready’ for China Trade Deal, Dismisses Recession Fears.
Consumers Doing Well
- Trump: “We’re doing tremendously well, our consumers are rich, I gave a tremendous tax cut, and they’re loaded up with money.”
- Trump Translated: The “tremendous tax” cut primarily benefited the wealthy. Consumers are tapped out. That’s why housing and autos are on the ropes.
Deal With China
- Trump: “I’m not ready to make a deal yet [with China].”
- Trump Translated: China is damn sick and tired of my tactics. They prefer to wait hoping for a Democrat president.
- Trump: “I would like to see Hong Kong worked out in a very humanitarian fashion,” Trump said. “I think it would be very good for the trade deal.”
- Trump Translated: I have completely abandoned the idea there will soon be a trade deal unless I further capitulate to the demands of China. I was forced to give Huawei Another 90-Day Reprieve and sadly, I Chickened Out by Delaying my Trade War Tariffs to Save the Holiday Season.
Recession
- Kudlow: “There is no recession in sight. Consumers are working. Their wages are rising. They are spending and they are saving.”
- Kudlow Translated: Judging from manufacturing, Recession is Imminent. Real wages are falling fast. New Buyers cannot afford to buy a home, because the Housing Bubble Reblown: Last Chance for a Good Price Was 7 Years Ago. Consumers are spending by going further in debt. The setup is not sustainable. It’s the Debt Stupid. Expect Panic Rate Cuts.
Got Gold?
This concludes another Mish public service announcement.
Mike “Mish” Shedlock
Full blown recession by April of 2020. You know when Trump and friends deny deny deny that it is a lie. Credit is still not money.
Kudlow: “There is no recession in sight. Consumers are working. Their wages are rising. They are spending and they are saving.”
…
Kudlow, Kudlow, Kudlow
I won’t give this used car salesman a moment of my time. I mentioned before I watched The Larry Kudllow Show a lot the summer of 2008 ( I was positive the US in a recession at that point). Kudlow talked down / over / brow beat any guest hoo dared suggest country in a recession. Well, he finally capitulated around Labor Day … and a mere few weeks later SCREAMING for TARP … else country back to the Stone Age.
I would caution if Kudlow ever hints at possible recession … 1) things lot worse than they’re letting on and … 2) taxpayer prepare for BOHICA.
If only we had the obama Fed that launched a new round of QE everytime the economy had a hiccup…we would all be better off.
Seriously. What is left after the obama regime? ZIRP for 7 years. QE after QE. Adding more to the deficit than all previous administration combined. Bailout after forward? Bubbles in every asset class. Insane bubbles in housing and stocks.
Mish. What should be done? What would be the plan going foward?
I’d recommend free markets. So instead it will be more of the same until the end of time.
Alternate translation for Trump and Kudlow:
‘”Who ya’ gonna believe, me or your lyin’ eyes”
Or in the immortal words of Jean-Claude Juncker
‘When it becomes serious, you have to lie’
Thanks for all you do Mish.
So, is anyone really surprised by this? When has a president ever predicted a recession under his watch?
Cocaine’s a hell of a drug, isn’t it Larry? Achieving the frame of mind needed to see so many rainbows in this debt ponzi requires powerful stimulants, far beyond anything available over the counter.
The bit about consumers saving should be a referenced for years to come!
Trump is spot on,if he sounds desperate,he’s got good reason,his govt will not survive without massive levels of fresh (overt)money printing ,even ZIRP won’t save DC,deep dish NIRP and massive around the clock money printing to at least buy time to the next election,without it……..omg!
“deep dish NIRP” ha, yummy!