Trump Blames Everyone but Himself for Business Slowdown

-edited

Trump chastised poor corporate management and the Fed once again for what ails businesses.

Trump Blames Companies

The Wall Street Journal reports Trump Says Companies, Not Trade Policies, to Blame for Business Setbacks

The comments on Twitter come as more U.S. businesses and farmers say they are suffering amid the prolonged U.S.-China trade war, ahead of a new round of tariffs set to take effect Sunday. When Mr. Trump was asked by reporters late Friday about whether the U.S. would go ahead with the tariffs, he responded: “They’re on.”

Dear Farmers

Farmers have taken on too much debt, but Trump's policies have unquestionably made matters much worse for them.

Trump Translated: Don't Blame Me

"Don't blame me! I don't ever do anything wrong"

Who's to Blame?

There is plenty of blame to go around.

  1. The Fed blew three consecutive economic bubbles by keeping rates too low too long yet again.
  2. Beggar-thy-neighbor global currency wars
  3. Trump's seriously misguided tariffs.
  4. Global fiscal stimulus policies
  5. Global central banks policies
  6. Demographics

Apportion that blame however you like.

But please note that Trump is demanding more of point number one despite the consequences. Trump also wants the Fed to entertain point number two.

Mike "Mish" Shedlock

Comments (37)
No. 1-13
Stuki
Stuki

Aside from omitting himself, he is dead on!

Which has to count as pretty fly for that orange haired guy!

Carlos_
Carlos_

Well I must say no one better qualified to recognize bad management that a guy who bankrupts most of his own business. So there is that...

RonJ
RonJ

"Trump's seriously misguided tariffs"

are the result of seriously misguided China policy which resulted in the destruction of 10's of thousands of U.S. factory operations and the jobs that went with them. China is now a rapidly rising empire.

BOE"s Mark Carney recently commented that low interest rates lead to crisis and war. Going negative, rates are the lowest in 5,000 years. Fourth Turning wars are major wars and it feels as if things are building up to that result.

FromBrussels
FromBrussels

....of course he is not to blame .... the FED and other CBrs are, for continuously disrupting healthy business cycles in order to desperately keep the cheap debt, rat race going ; the CBs created cesspool is simmering with fermentation , only question remaining when(not if) it is going to overflow....

we_will_be_Ok
we_will_be_Ok

He's right regarding many companies, but incorrect regarding the prescription, the latter because naturally he believes (incorrectly) that rising stock market will ensure his re-election in 2020, because he was told (incorrectly) that most people view stock market performance as a barometer of their own economic well-being.

Regarding the FED and 3 consecutive bubbles -- well, increasing or decreasing the cost of capital (by manipulating short term interest rates in the past and now paying interest on bank reserves - see Hamilton of the econbrowser) is the main mechanism of regulating economy in most capitalist countries whose major purpose is to smooth the business cycle. Now, do the esteemed thinkers and analysts and our host believe that we should abandon business cycle smoothing and revert back to unregulated economy?

Sechel
Sechel

Just like he doesn't apologize he also doesn't accept responsibility. The buck never stops with Donald Trump. If something goes wrong, blame the other guy. Tactic actually works with some of his followers.

Curious-Cat
Curious-Cat

Complainer-in-chief

Tengen
Tengen

Should be obvious to everyone that Trump is not part of the solution to our bankster nightmare. Still, I'll be happy if he doesn't start any new disastrous wars. To do that he'll have to ignore his best friends Israel and Saudi Arabia, but so far he has resisted their pleas.

Would be nice to get a politician who wants to take on the central banks, but there are none today. Ron Paul was probably the last chance. Trumptards should take note that jawboning the Fed into CUTTING rates does not count as valid criticism.

Kimo
Kimo

"There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved." Mises Quit bellyaching. The sooner, the better. If China trade is the trigger, I'll not loose sleep over the CCP's resulting hardships. Ours are already baked in.

Maximus_Minimus
Maximus_Minimus

I am not sure if am reading what everybody else is reading? Who said tariffs are solely to bring back jobs, so please stop repeating this over and over again. The sticking point are:

-currency manipulation (an MO common to East Asia) -theft of intellectual property. (Too late, most have already been stolen) This is not a Trumpian issue; the Europeans face the same conditions, but the "leaders" there prefer to bask in intellectual, moral high ground, and principles that no one gives a fig leaf about, elsewhere.

Mish
Mish

Editor

"As Martin Armstrong noted, all pegs are eventually broken."

Yes they are - so what - there should not be pegs.

A dollar should represent a quantity of gold not a value of gold. There is a huge difference.

The former is not a peg. It is simply a 100% redeemable dollar backed 100% by gold.

Six000mileyear
Six000mileyear

Trump didn't force corporations to borrow and overpay for acquisitions, share buybacks, or one-time dividends. That was simply corporate leadership fleecing shareholders.

nedlandp
nedlandp

Trump is speaking as a politician. Have you ever heard a politician criticize their own performance before an election?

Expecting a rational analysis is like expecting a lion not to roar.