North Korea’s Kim Jon Un finally told Trump he’s tired of all his theatrics. Kim told the press he won’t attend another summit that produces nothing for his country. Kim realizes Trump won’t drop the sanctions unless Congress agrees with that stupid idea. And now that Congress wants to bring Trump down, Kim thinks now is the time to draw a line in the negotiating sand.
The Commerce Department claims retail sales in October wiped out the lost sales in September. Retail sales dropped by .03 percent in September and they increased by .03 percent in October. That’s .01 percent higher than economists predicted. But that growth is way behind the 3.2 percent increase in retail sales in October 2018.
Consumer spending increased by 2.9 percent in October, but sales of big-ticket items dropped. That drop along with a drop in the manufacturing numbers and a decline in capital spending has economists worried. Even though unemployment is 3.6 percent, and inflation is 1.6 percent the threat of a recession in 2020 is still a possibility unless Trump decides to get help for his tariff addiction.
Fed Chairman Powell wants Trump to end the trade war with China. Mr. Powell let the Trumpster know the feds won’t cut interest rates again unless Gross Domestic Product growth continues to erode. GDP product growth at the end of the third quarter was 1.9 percent. That’s down from the 3.2 percent growth in 2018. Economists think GDP growth will drop again in the fourth quarter.
Farm bankruptcies increased in 2019 thanks to the trade war. The farmers still think the tariffs will break China. But China’s GDP growth is still 6.0 percent. Economists predict China’s growth will continue to decline, but China’s Central Bank will keep injecting cash into their economy to keep it growing at the same rate.
Mr. Trump bragged about his phase one deal with China, and that didn’t sit well with the Chinese. China’s negotiating team told Bob Lighthizer China would buy $20 billion worth of farm products in 2020. But Trump told the press China agreed to buy $50 billion. In 2017, Chinese importers bought $20 billion worth of soybeans, wheat, pork, and other farm products, but most of that business went to Brazil, Mexico, and Argentina in 2019. Henry Kissinger told the press the trade war may do more damage to the world than WWII if it continues.