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.
Former FBI agent explains why Trump just opened himself to more legal problems
Former FBI agent Asha Rangappa explained that the recent revelations that President Donald Trump made a promise to a foreign leader that made an intelligence official uncomfortable enough to declare themselves a whistleblower.
Rangapp explained that the President has a fairly wide latitude to conduct foreign affairs as he sees fit. But "when it comes to the 'outside world,' the President represents the sovereign: He is basically the voice of the United States and can negotiate with world leaders on its behalf."
Canada’s Trudeau admits to racist ‘brownface’ makeup in high school Halloween costume
Canada's Prime Minister Justin Trudeau apologized Wednesday for wearing brownface makeup to a party 18 years ago, as he scrambled to get on top of a fresh blow to a re-election campaign dogged by controversy.
Time magazine published the photograph one week into a federal election campaign with Trudeau's Liberal Party in a tight contest against the Conservatives led by Andrew Scheer.
Trudeau, 47, whose party won a landslide victory in 2015, has already been under attack for an ethics lapse and other controversies.
The black-and-white photograph shows Trudeau, then 29, wearing a turban and robes with his face, neck and hands darkened at a gala party in 2001.
A veteran teacher explains why Trump is incapable of learning
While dyslexia has been mentioned now and then as one of the reasons Donald Trump is so ignorant of what it takes to govern in a free society, I want to explore it as foundational to his inability to learn and grow while in office—and also as a way to link disparate troubling elements in his makeup.