The Trade War Between the US and China Just Got Personal

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(Photo Credit: Michael Vadon/CPAC)

 

Beijing’s state-run media unleashed a barrage of personal attacks against President Trump today.

As the trade war between itself and the Trump administration, Beijing got personal today, calling President Donald Trump “arrogant” and “deceitful” before vowing to “fight to the end,” and claiming the U.S. will only hurt itself. Continue reading

The Fed Is on a Collision Course

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U.S. Federal Reserve Eccles Building, 1937

 

Is the Trump economic boom a mirage? The data say yes, but the Fed models say no. The Fed has a long track record of sticking to its model-based approach and missing major turns in the U.S. economy.

Current Fed policy will push the U.S. economy to the brink of recession later this year. When that happens, the Fed will have to reverse course and ease monetary policy. This will send the dollar crashing while gold and the euro soar.

At first, the claim that the Trump economic boom is nothing special seems contrary to the happy-talk headlines coming from CNBC, Fox Business, Bloomberg and other mainstream business media outlets. Continue reading

Tone of Upcoming G7 to be ‘Confrontational’

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German Chancellor Angela Merkel got the ball rolling Wednesday by asserting she was going to engage in a diplomatic full-court press on the president’s EU tariffs, which impact her country the most. She was soon followed by French President Emmanuel Macron, who said he plans to “stand up” against his friend the president.

White House economic adviser Larry Kudlow tried to downplay the situation Wednesday afternoon, calling it “a family quarrel,” and said the president is merely “trying to fix this broken system” But, then he added:

“He’s sticking to his guns. He’s going to talk to them. The lines are open.” Continue reading

Trump Now Owns the Fed

 

Donald Trump has the opportunity to appoint a higher percentage of the Board of Governors of the Federal Reserve system at one time than any president since Woodrow Wilson.

President Wilson signed the Federal Reserve Act during the creation of the Fed in 1913 when they had a vacant board. At that time, the law said the secretary of the Treasury and the comptroller of the currency were automatically on the Fed’s board of governors. But besides that, President Wilson selected all five of the other participating members.

Now Trump has the opportunity to fill more seats on the Fed’s Board of Governors than any president since then.

Continue reading