The former chair of the Council of Economic Advisers under President Barack Obama warned of “a very high chance” of Trump’s trade war with China resulting in a recession — “just in time for 2020.”
Austan Goolsbee was interviewed by MSNBC’s John Heilemann on Friday after the DJIA closed down over 600 points after the trade war escalated on Friday.
“Just give us, if you would, Austan, your sense of what has unfolded today and how bad it is,” Heilemann asked.
“Yes, it’s terrible, I’m phoning from a bunker as we speak,” Goolsbee replied.
“There hasn’t been a day like this in a very long time. Yes, the markets sell a lot but the fact we’re going to have an escalating trade war, the president of the United States is publicly declaring the head of the Fed an enemy of the state and, oh, by the way, 40% of the Amazon is on fire and Ruth Bader Ginsburg is being treated for pancreatic cancer,” he continued. “If this is on a Friday, it makes it bad for Monday.”
“Now we’ve crossed some threshold that it’s clear the Chinese government is wanting to escalate the conflict rather than deescalate it. That, as we have seen President Trump’s behavior many times, if somebody escalates behavior, he wants to escalate back, and I think the reason the stock market reacted as badly as it did is there’s no lower bound to how that bad that can be,” he explained. “If we escalate that trade war — we’re already teetering on the edge of recession — and if you get in a full-blown trade war between the two biggest economies in the world, we will both have a recession. There’s no doubt about it.”
“The rest of the world is slowing, as they’re going to discuss at the G7 meeting that the president is headed to, and to add this on top of it I think is a very high chance this could drive us into recession just in time for 2020,” he warned. “I don’t know what the president is thinking.”
Shortly after the segment ended, Trump announced he was raising tariffs on over half a trillion dollars of Chinese goods.
Trump losing ground among retirees in must-win Florida
Jim Farr is a staunch 77-year-old Republican in the sunny southern state of Florida, which lures retirees from all over America -- a powerful political bloc.
As the country's presidential election draws nearer, Farr dislikes the idea of voting for a Democrat. But the idea of giving President Donald Trump another term irks him even more.
Farr, who lives in Kissimmee in the central part of the state, is a devout Christian who considers abortion akin to "murdering babies" and believes in what he calls compassionate capitalism. He says it is not the Republican party that has lost a supporter -- the president has.
There’s something much more exciting happening behind the scenes of the Biden-Harris ticket
Joe Biden’s pick of Senator Kamala Harris (D-CA) as his running mate for the 2020 Democratic presidential ticket has generated strong responses. While many Democrats are elated at the idea of seeing a brown-skinned woman of Indian and Jamaican heritage in such a position, progressives are debating one another about Harris’ mixed record on bread-and-butter issues such as criminal justice reform, foreign policy, and health care. In many ways, Harris is not unlike Barack Obama: charismatic, intellectually brilliant, telegenic, and with just the kind of racially diverse background that symbolizes an America that most liberal-minded people want to live in. But far more hopeful than Harris’ achievement is the new crop of staunchly progressive young people of color that is chipping away at the Democratic Party establishment through electoral politics.
Scranton cheers hometown hero Joe Biden on to the White House
In a small sandwich shop in Scranton, Pennsylvania, customers crowd in with a life-size cardboard cut-out of Joe Biden, the Democratic presidential challenger who was born in the city and visited the shop as a child.
"He used to come up here when he was a little kid," says Tom Owens, the owner of Hank's Hoagies.
The place had a different name then -- it was reportedly called Simmy's, and it sold penny candy to a young Biden and his friends -- but decades later he has not forgotten his way there, as he proved with a visit in October last year.