Only 37 percent of Americans want to impeach Mr. Trump. Impeachment is not popular with Americans. That’s why Trump’s campaign manager told the press impeachment will help the president win in 2020.
America’s economy is under attack. Trump’s tariff obsession has consumers nervous. Consumer spending is still strong, but when Trump’s new tariffs on Chinese products starts in October and December, consumers will stop spending. The consumer market accounts for more than 70 percent of Gross Domestic Product growth, so a slowdown in spending will put the final nail in Trump’s tariff-driven economic coffin, according to MarketWatch.
There are signs of recession and they are hard to ignore. The bond yield curve inverted which means investors get more yield from a 2-year Treasury note than a 10-year note. That happens right before recessions rear their ugly economic heads, according to economists.
The repo market, the market where banks borrow from each other, is short of cash. That same thing happened right before the 2008 financial meltdown. The Feds must continue to buy Treasury notes to ensure that market doesn’t collapse. The repo market is short of cash because corporations pulled money out of that market to pay their taxes this year.
The national debt just topped $22 trillion. Trump’s tax cut for the rich adds a $1 trillion a year to that debt, and that means the national debt will outpace GDP growth and that’s not good, according to economists.
The Chinese want to hurt America’s economy in several ways. Chinese tourism is down 50 percent in 2019, and the Chinese continue to sell Treasury notes and the real estate they own in the United States. Plus, China won’t sign a trade agreement until Trump lifts the tariffs. Mr. Trump told UN members he will keep the tariff pressure on China until China changes its trade laws.
China and Trump won’t settle their trade dispute this year, according to Wall Street economists. But Japan wants to appease Trump, so he doesn’t put a 25 percent duty on Japanese autos and trucks. At the UN meeting, President Abe told Trump his country would cut tariffs on U.S. beef and pork, and Japan would buy more wheat and barley.
Mr. Trump agreed to drop the tariffs on $40 million worth of Japanese agricultural goods. But he didn’t drop his threat to put additional tariffs on Japanese cars and trucks. That may still happen on November 17th, according to Mr. Trump.