Wall Street Is Worried About The Fed’s Role In Trump’s Trade War. You Should Be Too
Donald Trump's first order of (Twitter) business on Saturday involved perpetuating the administration's manifestly false narrative on the trade war.
"Things are going along very well with China", Trump began.
And just like that, the president told his first lie of the weekend. Whatever the opposite of "well" is, that's how things are "going along" with China.
Read all the latest on the trade war
After that, Trump launched into the usual nonsense about how tariffs work. "They are paying us Te
“Is the FED going to underwrite Trump’s trade war?”…Jonathon Ferro.
Trump is playing with fire. Likely we will pay for it, ultimately it is likely to lay his reelection chances to waste.
As always with Trump, the question is whether he is lying, stupid, or demented and forgot what tariffs are and who pays for them. Where ever that nexus lies, it is almost cosmic how convenient his messaging is.
Think about that. If you polled the American people, what percentage would know who pays tariffs? Would that fact become opinionated based on support for Trump? Would people lie just because Trump said it and keeps repeating it? What percentage is even marginally aware that a trade war is going on? How many forgot or did not learn basic high school civics?
Take it on face value. Assume Trump is right. Concede everything. China pays the tariffs. Fine, whatever. But they retaliate. The Chinese impose tariffs on American imports. Who pays for those in that scenario? When Trump subsidizes farmers hurt by the easy to win trade war, where does that money come from? If the United States is getting tens of billions of dollars from China now, why are we negotiating for that to stop? Even in the orange sky reality Trump has manufactured, the media cannot ask the right questions.
Trump is verily the President America deserves…
Lets face it … wall street LOVES the fact that the Fed can be forced by Trump to play ball and keep asset prices inflated…
Implies a range trading approach to stocks and volatility and a directional approach to treasuries and spreads – until this tweet-tariff-ease cycle breaks? And generally, exposures reflecting lower return/risk ratio for stocks?
And I suppose there was nothing in his tweets about helping with the infrastructure problems in Cincinnati or help from the administration with those millions China is sending us (ha ha) for the third world entity of Baltimore??