“Trump came along and deregulated everything, weakening the post-Great Recession laws meant to curb Wall Street abuses and authorizing a massive tax cut for the wealthiest Americans.”
Fears of another financial meltdown in the United States and across the globe sent the hashtag #TrumpRecession to the top of Twitter’s trending list on Wednesday as commentators and lawmakers pinned the diving stock market on the president’s economic agenda, including his reckless trade war with China.
“Why did the Dow drop over 700 points this morning and why is #TrumpRecession trending? Because the yield on the 10-year Treasury note broke below the 2-year rate,” tweeted Rep. Ted Lieu (D-Calif.). “This inverted yield curve has historically signaled an approaching recession.”
As Common Dreams reported earlier Wednesday, the inverted yield curve—which has predicted every major recession over the past five decades—sparked warnings from economists that a major economic downturn could be just around the corner.
On Twitter, Wajahat Ali, a contributing op-ed writer for the New York Times, rattled off several of Trump’s failed promises that preceded fears of another crash.
“Trump promised to eliminate the debt in four years; he increased it,” Ali tweeted. “He promised to win the easy trade war with China; he didn’t. He promised Mexico would pay for the wall; it won’t. His tax cuts were going to trickle down and spur the economy; it didnt. #TrumpRecession.”
Others echoed Ali:
“Trump came along and deregulated everything, weakening the post-Great Recession laws meant to curb Wall Street abuses, and authorizing a massive tax cut for the wealthiest Americans without paying for a cent of it.” #TrumpRecession https://t.co/D8FPONBsf3
— Swing Left (@swingleft) August 14, 2019
ICYMI: Trump accuses China of currency manipulation because their currency devalued in the wake of his tariffs. However this accusation has no basis in fact. Instead, Trump’s trade war only increases the likelihood of a recession #TrumpRecession https://t.co/bcWX0FpprZ
— The Real News (@TheRealNews) August 14, 2019
The #TrumpRecession is gonna be YUGE. The ‘good’ news is that the 1% won’t be affected that much – they’ve been able to stow away their windfall from the #TaxScam to soften the blow. 😐https://t.co/cAPGFot8YA
— Nick Knudsen 🇺🇸 (@DemWrite) August 14, 2019
An anonymous senior White House official insisted to Politico on Wednesday “there is no recession coming” despite all of the warning signs, but economists and other analysts are not nearly as confident.
Chris Rupkey, chief financial economist at MUFG Union Bank, told the Washington Post that “yield curves are all crying timber that a recession is almost a reality, and investors are tripping over themselves to get out of the way.”
Trump aides desperately try to downplay ‘order’ to US companies to leave China
Donald Trump's top aides on Sunday downplayed the idea of US companies being forced to abandon China any time soon, as an edict from the president ordering businesses to start looking for alternatives has been met with skepticism.
Treasury Secretary Steven Mnuchin and White House economics advisor Larry Kudlow took to the airwaves from France, where Trump is participating in the G7 summit, to smooth out tensions in the business community prompted by Trump's Friday tweet.
Trump said he has "no plan now" to bring US companies in line, and his aides quickly reinforced the message.
Trump sparks confusion at G7 before doubling down on China tariffs
President Donald Trump doubled down Sunday on his hard line against China after sowing confusion with statements that he might be willing to soften a trade war G7 partners fear threatens the world economy.
At the G7 summit in Biarritz, France, Trump announced a major trade deal with Japan and promised more of the same with Britain, once Brexit is done.
But the positives were overshadowed by a mix-up over his apparent expression of regret for the latest escalation in the US-China dispute.
"I have second thoughts about everything," he conceded to reporters when asked if he regretted his decision on Friday to ramp up tariffs on all Chinese imports, worth some $550 billion, in retaliation for Beijing's earlier hike of levies on US goods.
Persecuted Christians eye long-sought freedom in Sudan
Sudan's Christians suffered decades of persecution under the regime of Islamist general Omar al-Bashir. Now they hope his downfall will give the religious freedom they have long prayed for.
Deep within the maze of dusty alleys that honeycomb Omdurman, Khartoum's sprawling twin city, Yousef Zamgila's church is not visible from the street.
It is hidden in the courtyard of a friend's home and consists of a few iron benches, a pulpit and crosses hastily painted on pillars holding a corrugated roof.
"The previous centre got destroyed because we didn't have the right papers. They always refused... So we use the land of our neighbours," says the Lutheran reverend.