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JP Morgan Claims The Stock Market Is Driven By The Feds Policy Not Economic Fundamentals


President Trump was in rare form at the G20 Summit. Before he landed, he gave some G20 members a dose of his famous Twitter shade while he called the first Democratic debate a haven for losers. Trump has to come back from Asia with a trade agreement restart, and a slight change in his attitude about climate change. Mr. Trump told the G20 members his factories can’t run on wind power so he refused to rejoin the Paris Climate Accord again. But he did get Xi to believe he won’t bully him again while the trade talks are in progress.

President Xi Jinping agreed to start talks again, but Trump had to lift the Huawei ban to get that done. Trump said he would deal with the Huawei issue at the end of the trade talks. He still has to agree to let Canada release Huawei’s CFO Meng Wanzhou if he wants China to sign a trade deal. After the tech companies convinced Trump they’re screwed without Huawei, he had to cave on the Huawei issue.

The Supreme Court didn’t like Trump’s census citizenship question argument, so they send Trump’s lawyers back to legal square two. But The Supreme Court said they have the DACA case on their October docket, so that made the Trumpster happy.

Mr. Trump has a hand-shake date with Kim Jon Un at the demilitarized zone. Trump is in South Korea trying to get President Moon to let Kim throw his nukes away a little at a time. Mr. Trump did say he doesn’t mind being the first U.S. president to walk on North Korean soil. That may not be true, according to Jimmy Carter. Carter told the press there is enough evidence to call Trump an Illegitimate president. Mr. Trump told Carter he’s a loser who let Iran walk over him, according to the Washington Post.

Most G20 members told Trump he needs to stop bullying Iran. China and Europe have the INSTEX financial system working so businesses in their countries can get paid. That means Trump is all alone in his quest to throw the world into recession mode.

The stock market is another financial anomaly in Trump’s world. Rather than reacting to the economic fundamentals that drive growth, the market reacts to Trump’s promises and his ongoing war with the Federal Reserve, according to JP Morgan.

Most economist project less than one percent real GDP growth in the second quarter of 2019. And a recession could hit the states by the second quarter of 2019, according to the Financial Times.