Responding to Donald Trump’s latest attack on members of the Federal Reserve for not lowering interest rates to zero or below — Nobel Prize-winning economist Paul Krugman said the president’s latest actions show he has hit the ‘panic button’ because of he has no idea what he is doing.
In his New York Times column, Krugman ridiculed Trump by bluntly stating, “He’s clueless about why his policies aren’t working, or about anything else involving economic policy.”
“It’s now clear that he’s in full-blown panic over the failure of his economic policies to deliver the promised results,” Krugman began, before getting to his point and writing, “In addition to demanding that the Fed cut interest rates below zero, Trump declared that ‘we should then start to refinance our debt,’ because ‘the USA should always be paying the lowest rate.’ Observers were left scratching their heads, wondering what he was talking about.”
As the economist notes, those observers should be confused because the president has no idea how government bonds that finance the debt work.
“It’s fairly obvious,” the columnist explained.”Trump thinks that federal debt is like a business loan, which you can pay down early to take advantage of lower interest rates. He’s clearly unaware that federal debt actually consists of bonds, which can’t be prepaid (which is one reason interest rates on federal debt are always lower than, say, rates on home mortgages). That is, he imagines that the government’s finances can be managed as if the U.S. were a casino or a golf course, and it never occurred to him to ask anyone at Treasury whether that’s how it works.”
As to why Trump is in panic mode, Krugman suggests, ” While there’s no economic emergency, Trump apparently feels that he’s facing a political emergency. He expected a booming economy to be his big winning issue next year. If, as now seems likely, economic performance is mediocre at best, he’s in deep trouble.”
“Voters have noticed: Trump’s approval rating on the economy, while still higher than his overall approval, has started to decline,” Krugman wrote. “Hence the panicky demands that the Fed pull out all the stops. But while Trump realizes that he’s in trouble, there’s no indication that he understands why. He’s not the kind of person who ever admits, even to himself, that he made mistakes; his instinct is always to blame someone else while doubling down on his failed policies.”
As the economist sees it, Trump has put himself in a corner with his trade war and may have to do the one thing he never does: admit he was wrong.
“Trump could reverse course, and do what most people expected a year ago, reaching a deal with China that more or less restores the status quo,” he speculated. “But that would be a de facto admission of defeat — and at this point it’s not clear why the Chinese would trust him to honor any such deal past Election Day.”
“The fact is that when it comes to economic policy, Trump has trapped himself in a bad place,” he concluded.
You can read the whole piece here.
Rep AOC helped Bernie Sanders turn out ‘the largest crowd drawn by any candidate’: report
Rep. Alexandria Ocasio-Cortez (D-NY) helped Sen. Bernie Sanders (I-VT) turn out a huge crowd at a campaign rally in New York City.
Ocasio-Cortez, also known as AOC, officially endorsed the Vermont senator at the event.
"Bernie Sanders has a crowd of 25,872 this afternoon at his Queens rally, according to the security company handling the event, Contemporary Services Corp. That would make this event, his first since his heart attack 18 days ago, the largest crowd drawn by any candidate," Buzzfeed News correspondent Ruby Cramer reported.
Florida Republican said he may vote to impeach Trump — then announced he was retiring from Congress
Yet another Republican announced they would not be running for re-election in 2020.
"Representative Francis Rooney, Republican of Florida, who has refused to rule out voting to impeach President Trump, said on Saturday that he would not be seeking re-election," The New York Times reported. "Rooney, who first won his district in southwest Florida in 2016, said on Fox News that he believed he had accomplished what he wanted to do in Congress and had grown frustrated with aspects of legislative service."
America is being held hostage by a bloody madman — and he’s in the White House
These are the most frightening words Trump has uttered since becoming president:
“Sometimes you have to let them fight a little while. Sometimes you have to let them fight like two kids. Then you pull them apart.”
He said this at a campaign rally, naturally. In Texas, naturally. He tossed out the remark like just another chunk of red meat, so we can assume he meant what he said, because that’s when Trump tells us who he is, when he’s standing before an adoring crowd and he goes “off script.”
Trump’s entire presidency has been “off script,” but it’s telling when his excursions into the la-la land of his mind are this specific. He was speaking of the Kurds and the Turks, who have been engaged in bloody battles along the border between Syria and Turkey ever since Trump effectively gave Turkish President Recep Tayyip Erdogan the green light to invade Syria on Oct. 5. Kurdish forces have already lost as many as 11,000 since they began fighting ISIS alongside U.S. forces in Iraq and Syria. Now hundreds more have died, and thousands may yet lose their lives. Hundreds of thousands have been displaced and are refugees. It’s a bloody disaster that Trump refers to as a fight between children on a playground.