Federal Reserve Chairman Jerome Powell told a group of bankers the economy is in great shape. The 3.6 unemployment rate and the 1.6 inflation rate indicates the economy is strong. But since the U.S. economy and the global economy interact with each other, a group of economists think the U.S. will be in a recession by June 2020.
German Chancellor Merkel told the press Germany had two straight months on negative growth due to weak manufacturing numbers and a sluggish auto industry. Britain is steps away from a recession. Some Brits say leaving the EU will throw Britain’s economy out of whack. Gross Domestic Product growth in the U.K. is one percent, and it keeps falling every quarter.
Trump blew smoke up Boris Johnson’s butt when he broke bread with the Queen last summer. Mr. Trump told Boris he would give the U.K. an unbelievable trade deal if he told the EU to bugger off without a signed deal. But Trump reneged on that promise when Parliament told Johnson to extend the Brexit agreement until January 2020. Johnson got the extension, but Trump didn’t like the deal.
Trump plans to return to London December 4th to strong-arm NATO members so they up their security budgets. The Trumpster also plans to dine with the Queen before he beats Johnson up for wimping out. Johnson vowed he would rather be dead in a ditch than get a Brexit extension from the EU.
According to the Central Bank of Europe, Gross Domestic Product growth slipped to three percent in the second quarter. EU Central Bank President Lagarde blames Trump’s tariff wars for the weaker than expected economic growth. But Morgan Stanley thinks the global economy will come alive in 2020. Wall Street banks think the Trumpster will stay in office, but if Warren or Sanders win, the banks will sing a different tune, according to the Democrats.
Wall Street wants Trump to sign the phase one trade deal this year. But when Trump told the press he will keep the tariffs in place, the Chinese decided to go home and think about Trump’s decision. Trade negotiators Steve Mnuchin and Bob Lighthizer call China’s head negotiator Liu He daily. Lighthizer told the press a signed trade deal will happen soon. But according to the Chinese news agency, Trump will have to drop some tariffs before Chinese importers buy more farm products.