The insanity continues. Yesterday Trump rocked markets with a series of unhinged tweets. I hope you’ll read this CNBC thread. It’s a classic of Trump turbulence.
Last night Trump left for the G7 Summit and on his way he had another yelling session with reporters. Nothing sane came out of that, but he claimed that his remark about being “the chosen one was “sarcastic.” and “we were all laughing?” I don’t think Trump knows what sarcasm is.
This morning I turned on the TV to see him at a “working lunch” with French President Emmanuel Macron.
Macron spoke about the many serious problems that need to be discussed at the summit, including climate change. Trump uttered several disconnected sentences, mostly about the weather. After the lunch, Trump tweeted thanks to Macron to a parody account, misspelling Macon’s name.
The New York Times summarizes yesterday’s insanity: One Crazy Day Showed How Political Chaos Threatens the World Economy.
President Trump arrived in France on Saturday for a meeting of the Group of 7 industrialized nations, having set the stage for fireworks and confusion. In one dizzying day, he had seemed to be searching for whom or what to blame for economic troubles, first using Twitter to call his own Federal Reserve chief an enemy of the United States and then to urge American companies to stop doing business with China.
And that was just while the markets were open. Later Friday, he said he would apply tariffs to all Chinese imports and increase those already in place….if a recession and breakdown in international commerce happens in the coming year, histories of the episode may well spend a chapter on the Friday collision of official actions in the government offices of Beijing, in the Grand Tetons in Wyoming and in the Oval Office.
It became clear in real time how the risks of an escalating trade war and the fraying of longstanding financial and political ties could quickly outpace the ability of central banks — the normal first responders to economic distress — to do anything about it.
President Trump’s shoot-first approach adds to the risks at a delicate moment, with major economies in Asia and Europe already teetering and policymakers’ capacity to contain the damage in question.
“The escalation, the unpredictability, the erratic nature of policy developments is central to what is going on, and these aren’t things you can plug into an economic model,” said Julia Coronado, president of MacroPolicy Perspectives, an economic consultancy. “Something is breaking. It’s very dangerous.”
Read the rest at the NYT.
In France today, Trump claimed he has the power to force companies to follow the commands he issued on Twitter yesterday. The New York Times: Trump Asserts He Can Force U.S. Companies to Leave China.
BIARRITZ, France — President Trump asserted on Saturday that he has the authority to make good on his threat to force all American businesses to leave China, citing a national security law that has been used mainly to target terrorists, drug traffickers and pariah states like Iran, Syria and North Korea.
As he arrived in France for the annual meeting of the Group of 7 powers, Mr. Trump posted a message on Twitter citing the International Emergency Economic Powers Act of 1977 — a law meant to enable a president to isolate criminal regimes but not intended to be used to cut off economic ties with a major trading partner because of a disagreement over tariffs.
“For all of the Fake News Reporters that don’t have a clue as to what the law is relative to Presidential powers, China, etc., try looking at the Emergency Economic Powers Act of 1977,” Mr. Trump wrote. “Case closed!” [….]
In raising the possibility of forcing American businesses to pull out of China on Friday, Mr. Trump framed it not as a request but as an order he had already issued.
“Our great American companies are hereby ordered to immediately start looking for an alternative to China, including bringing our companies HOME and making your products in the USA,” he wrote on Twitter, adding, “We don’t need China and, frankly, would be far better off without them.”
In fact, aides said, no order has been drawn up nor was it clear that he would attempt to do so. Instead, it could be the latest negotiating tactic by a president who favors drastic threats without always following through on them in hopes of forcing partners to make concessions.
The “president” is a madman and we’re stuck with him for now.
According to CNN, Trump doesn’t understand why he has to go to the G7: Trump has questioned why he must attend G7.
…in conversations with aides over the past weeks, Trump has questioned why he must attend, according to people familiar with the conversations. After the past two G7 summits ended acrimoniously, Trump complained about attending a third, saying he didn’t view the gathering as a particularly productive use of his time.
He’s made similar asides in meetings with other world leaders, including Japanese Prime Minister Shinzo Abe and French President Emmanuel Macron, who have encouraged him over the past six months to commit to attending the Biarritz summit, people familiar with the conversations said. Macron is this year’s summit host.
The G7 represents the world’s major economies, and has long been a regular stop on the US President’s calendar. In small group sessions, with only the leaders and few aides present, the world’s major economic and geopolitical problems are discussed at length.
It’s a more workaday style of foreign travel than the type of trip Trump has come to enjoy, which usually include lavish displays of welcome like royal parades or state banquets. It’s also a practice in the kind of multilateralism that Trump and his aides have downplayed in favor of one-one-one negotiations with other countries.
But if he didn’t attend, he would miss an opportunity to sow global chaos and frighten out allies half to death.
Associated Press: At global summit, Trump facing limits of go-it-alone stance.
Trump, growing more isolated in Washington, faces a tepid reception on the world stage, where a list of challenges awaits. Anxiety is growing over a global slowdown , and there are new points of tension with allies on trade, Iran and Russia.
Fears of a financial downturn are spreading, meaning the need for cooperation and a collective response is essential. Yet Trump has ridiculed Germany for its economic travails at a time when he may have to turn to Chancellor Angela Merkel and others to help blunt the force of China’s newly aggressive tariffs on U.S. goods. Those trade penalties, combined with the economic slowdown, have raised political alarms for Trump’s reelection effort .
In a late addition to the schedule, Trump and French President Emmanuel Macron sat across from each other at a small table for lunch outside the opulent Hotel du Palais before the official start of the summit. Hours earlier, Trump threatened anew to place tariffs on French wine imports to the U.S. over France’s digital services tax, and that prompted a European leader to promise European Union action if the U.S. followed through. Macron called for an end to the trade wars he said are “taking hold everywhere.”
Macron, the summit host, said two were discussing “a lot of crisis” around the world, including Libya, Iran and Russia, as well as trade policy and climate change.
Good luck with that.
At The New Yorker, David Remnick warns us about sinking into despair over Trump’s insanity: Trump Clarification Syndrome. Here’s the gist:
Again and again, Trump’s top advisers––Daniel Coats, Gary Cohn, James Mattis, Rex Tillerson, H. R. McMaster, and John Kelly among them––have left the White House clutching their heads, their dignity and nerves in rags, realizing that they have served a President who is unreachable, beyond cure and counsel; a man of rotten character, blatant instability, and zero empathy; an empty but radically dangerous human being, who occupies the highest office in the land….
But, as perilous and unnerving as things are, any form of political despair at such a moment remains unforgivable. Despair is a form of self-indulgence, a dodge. Trump’s derangements in policy and character should instead instill a kind of Trump Clarification Syndrome, a reckoning with what confronts us. A reckoning, as the Amazon rain forest burns, with climate change. A reckoning, as Trump threatens to revoke the barest protections for immigrant children and the guarantee of birthright citizenship, with the history and persistence of bigotry in all forms. With the structural persistence of inequality of income and opportunity. With matters of truth and falsehood. Trump’s presence in the White House is depressing, there is no doubt, but to wallow in that gloom, or even to imagine that public life will “return to normal” on its own after his departure, is insufficient, even inexcusable. Democrats, Independents, and Republicans who cannot countenance Trumpist politics ought to welcome the most urgent kind of political debate on matters of policy and on who we are as a country. Perhaps it is a form of derangement to say it, but it’s entirely possible that Donald Trump, who has been such a ruinous figure on the public scene, has at least done the country an unintended service by clarifying some of our deepest flaws and looming dangers in his uniquely lurid light.
In non-Trump news, Joe Biden committed another disturbing faux pas yesterday. The Washington Post: Evoking 1968 at town hall, Biden asks: What would have happened if Obama had been assassinated?
HANOVER, N.H. — Former vice president Joe Biden, returning to this crucial primary state and attempting to put the focus on the foibles of President Trump, took an unusual departure toward the end of a 70-minute dive into health-care policy by asking the crowd to imagine the assassination of Barack Obama.
“None of you . . . women are old enough — but a couple of you guys are old enough,” he said during a town hall at Dartmouth College. “I graduated in 1968. Everybody before me was, ‘Drop out, go to Haight-Ashbury, don’t trust anybody over 30, everybody not get involved.’ No, I’m serious. I know no woman will shake her head and acknowledge it. But you guys know what I’m talking about. Right? But then what happened?”
The front-runner for the Democratic presidential nomination referenced the assassinations of two of his political heroes, Martin Luther King Jr. and Robert F. Kennedy — who was killed while running for president.
At least he’s figured out that the assassinations happening 1968, not the late-1970s.
“Imagine what would have happened if, God forbid, if Barack Obama had been assassinated after becoming the de facto nominee,” he continued. “What would have happened in America?”
What was his point? Your guess is as good as mine. But this puts me in mind of something Hillary said in 2008 that was met with universal outrage. The New York Times, May 24, 2008:
Senator Hillary Rodham Clinton defended staying in the Democratic nominating contest on Friday by pointing out that her husband had not wrapped up the nomination until June 1992, adding, “We all remember Bobby Kennedy was assassinated in June in California.”
Her remarks were met with quick criticism from the campaign of Senator Barack Obama, and within hours of making them Mrs. Clinton expressed regret, saying, “The Kennedys have been much on my mind the last days because of Senator Kennedy,” referring to the recent diagnosis of Senator Edward M. Kennedy’s brain tumor. She added, “And I regret that if my referencing that moment of trauma for our entire nation and in particular the Kennedy family was in any way offensive.”
Why isn’t Biden’s strange remark getting the same amount of negative attention that Clinton’s did back in 2008? Actually, I know the answer . . .
So . . . what stories are you following today?