POLICY BY MARKET MOVES
——On Fox Business Network’s “Bulls and Bears’ last night, I stated businesses don’t even know if the president changes his mind on the new China tariffs by September 1st as he changes his mind on a whim. We also know he changes his mind depending on market moves.—–
—–We were going to wait to write this weekend about the debates and about these new tariffs but we just received this:—–
—–Senior Trump administration official: “President Trump is open to delaying tariffs if China takes positive action, but prior talks did not go “well enough!”—–
—–This coming the next day after more proposed tariffs. Sybil anyone?—–
—–Futures rallied off of this but heading back down. This tells us what we already knew. Markets go down…no tariffs. Markets hold up or go up…hmmm, let’s propose new tariffs. Kids, this is nuts. Setting important policy based on markets is plain nuts. Eventually, markets are going to stick the middle finger back at all this uncertainty. Leave no doubt the president saw the market reverse down over 500 points yesterday and told his people to go out and make this statement in order to calm markets. Leave no doubt if markets continue to swoon, we will get a “just kidding” before September 1st in order to stop the bleeding. In fact, we guarantee you that if markets continue lower, he will pivot for the tenth time. The president did it with European auto tariffs. He did it with Mexico tariffs. He has done it several times with new China tariffs. But we think the market may be getting weary of all this nonsense.—–
——But that’s Wall Street. What do you tell the thousands of companies representing the thousands of products. They cannot plan on supply. They cannot plan on demand. They cannot plan on expense. They cannot plan on profit. They cannot plan on man power. They cannot plan on anything. In fact, the only thing they can plan on is the vertigo they are getting from these continued market-induced flip-flops.—–
—–For a man that says he is all in with the businesses of this country, he is now doing a great job of adding massive unnecessary uncertainty onto the shoulders of the businesses of this country. And the next tweet is?—–
Trump is a necessary evil to the status quo. After three consecutive administration’s, of bumbling and fumbling of our economy. This is what we wind up with.
Companies will just have to move their supply chains out of China. This happened with Japan back in the 80s.
Communist China is not our friend. What would you have us do Gary k? Just continue with the stupid status quo policies?
Somebody has to do something. There is no good way of going about this. But, to keep hammering on Administration that’s trying to fix a 30 year plus your mess, is a little ridiculous.
It’s a free country Gary K, you run for office.
Thank you, I do love your show and your opinions.
There is one thing he has not wavered on. If you don’t want tariffs, build the factories in USA. That will put more of the 30+% of workers not participating in work force back in work force.
I agree with all that you explained, but I think what the President does is more to do with the damage to the opposing team. The Chinese waited for the Muller report, for the midterm elections and now for the 2020 election. Why? Because the Chinese have politicians in their pockets. I think that is very important for this President to bow down in order to get Europe and the rest of the countries that rip us off to come to the table to make fair trade deals. In the other hand, he’s telling the markets what he’s doing.
I agree with all that you explained, but I think what the President does is more to do with the damage to the opposing team. The Chinese waited for the Muller report, for the midterm elections and now for the 2020 election. Why? Because the Chinese have politicians in their pockets. I think that is very important for this President is to get the Chinese to bow down in order to get Europe and the rest of the countries that rip us off to come to the table to make fair trade deals. In the other hand, he’s telling the markets what he’s doing.