Category Archives: Trade war
On Saturday President Trump and Chinese President Xi backed away from the precipice of trade war. And stocks jumped up.
But on Wednesday, Trump being Trump, tweeted “I am Tariff Man.”
And Wall Street jumped out the window.
The Koch brothers have jumped ship. They’ve given millions to Republicans in the past but they say they’re more interested ideas than party.
Daniel Henninger in the WSJ reports, “In an interview, Charles Koch said trade wars and prosperity were incompatible and that his organization’s financial support wouldn’t depend on party affiliation.”
Donald Trump called Koch “a total joke in real Republican circles.”
Koch Brothers Abandon Trump
Henninger askes, “what Republican circles?”
Rather than a one-off event or joke, the Kochs look more like a phenomenon emerging on the right and left, including MoveOn, Daily Kos, Breitbart, Black Lives Matter, Club for Growth and Netroots Nation.
Some voters will tie themselves to the Trump mast and ride it out. But Charles and David Koch aren’t a joke. That feud was a warning shot.
President Trump doesn’t want the Fed to raise interest rates. And he said so. Which is frowned on since the Fed is supposed to be independent.
It’s also awkward for Trump’s chief economic advisor Larry Kudlow, a strong advocate for a strong dollar. Or King Dollar as he likes to say.
Trump hired Kudlow in March. But in February here’s what Kudlow had to say on CNBC:
A strong dollar is an essential pillar of economic prosperity with minimal inflation, but we worry that the White House has not adopted this strategy. So we urge the Trump administration to return to the successful “King Dollar” policies that worked in the 60’s, 80’s and 90’s.
Uh oh. He went on to say:
We also worry that the recent widening trade deficit numbers will further tempt the administration into a weak dollar strategy.