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Here are three signs of looming disaster for the Trump economy: Matt Taibbi

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President Donald Trump regularly boasts about the strength of the American economy — but Rolling Stone columnist Matt Taibbi thinks that cracks are starting to form that will soon plunge the United States back into a recession.

In his latest column, Taibbi says that three factors — rising interest rates, the GOP’s massive tax cut and Trump’s own love of tariffs — are likely to send the U.S. economy heading downward in the near future.

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When it comes to interest rates, Taibbi notes that the Federal Reserve has been signaling that it will finally be running a tighter monetary policy after it spent most of the past decade pushing interest rates down to effectively nothing.

“The Fed is taking about $50 billion out of the economy every month, and now raising rates not just above zero, but close to (and perhaps even beyond!) neutral,” he writes. “The free money era is over… Trump must be cursing his bad luck.”

The GOP’s tax cuts, meanwhile, have massively slashed the amount of revenue coming into the federal government, as the deficit of $488 billion in the first quarter of 2018 broke the nominal quarterly deficit record — which was originally set back in 2010, when the United States was in the middle of the worst recession in decades.

Combined with the Federal Reserve’s actions, Taibbi speculates that Trump will be forced to “pay interest on the giant sums he will inevitably have to borrow to pay for his idiotic tax cuts.”

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And finally, Taibbi notes that the president’s trade war with China could be particularly disastrous given that China holds so much of America’s debt.

“But what if Trump’s big populist gambit announced in September — slapping 10 percent tariffs on $200 billion of Chinese products — hurts the Chinese economy to the point where they can’t afford to keep subsidizing our exploding debt?” he asks. “Even smart people are fully capable of driving the American economy off a cliff. What happens when the dumbest administration in history gets a turn at the wheel? Maybe last week wasn’t the time to start panicking. But that moment can’t be far.”

Read the whole piece here.

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WATCH: Lewandowski’s lawyer freaks out, tries to block Congress from asking any further questions

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During the House Judiciary Committee testimony of President Donald Trump's former campaign manager Corey Lewandowski about the Russia investigation, Lewandowski's attorney frantically crashed the witness table and demanded that Congress stop asking questions of his client.

"Mister Chairman, as you know I am counsel for Mr. Lewandowski—" began the attorney.

"You are not a witness and you should not be seated at that table," cut in House Judiciary Chairman Jerrold Nadler (D-NY) sharply.

"I understand that," said Lewandowski's attorney. "I will leave after I register a formal protest based upon the debate that I heard. These seem to be unauthorized questions and I know you choose your words carefully—"

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Lewandowski’s testimony will let Democrats build Nixon-like articles of impeachment: Ex-prosecutor

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As President Donald Trump's former campaign manager Corey Lewandowski combatively testified before the House Judiciary Committee, he admitted that Trump asked him to communicate to then-Attorney General Jeff Sessions that former special counsel Robert Mueller's investigation must be shut down. Aside from that revelation, most of the testimony was unproductive, with Lewandowski lashing out at members of Congress and running interference for the president.

But as former federal prosecutor Renato Mariotti wrote on Twitter, these outbursts — and the fact that Trump sanctioned the way that Lewandowski behaved in the hearing — could be the basis for Democrats to write up articles of impeachment against Trump similar to those drafted against Richard Nixon in 1974:

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Putin aims a weaponized barb at Trump over Saudi attack – and hits the mark

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Russian President Vladimir Putin joked this week about selling defense systems to Riyadh following weekend attacks on Saudi oil facilities. The gag was aimed at US President Donald Trump and it hit the mark with the precision of a guided weapon.

It was a masterful piece of trolling by the czar of trolls – a snide, disparaging jibe with an element of truth twisted into absurdity for maximum effect and laughs. At a joint press conference with his Turkish and Iranian counterparts in Ankara on Monday, Putin cast his bait into the volatile Persian Gulf region just days after devastating attacks on Saudi oil facilities exposed the limits of the Gulf kingdom’s expensive defense systems.

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