Trump’s Axe Beats Abe Lincoln’s

Donald Trump has managed to make not only the media, but the vast majority of other Americans turn back into teenagers again.

Remember when we were at the age when we began to obsess about what our peers were doing and why? Passing notes or texting in class with BFFs about this boy or that girl? Or about our teachers? Self-absorbed and other-absorbed while the rest of the world didn’t matter.

I’m fascinated with the addictive way many of us are reacting, either for or against Donald Trump. This weekend the violence that erupted in the South seems to have usurped every other thing going on the world.

In a recent post, “Divided They Fall – Right Wing Regulation,” I discussed how Trump’s actions and those of his right-hand man Steve Bannon were at odds with each other. Now Trump’s even at odds with his own base!

There are all kinds of conflicts going on, inside the White House, in Congress, between Congress and the White House, inside the media, and now, even in the streets. What’s amazing is that these splinterings all seem to be stemming from one individual – President Donald Trump.

How could one person create such chaos and bitter division? What kind of person is capable of that? Continue reading →

What’s Ahead for the Fed—and Us?

A recent article in the Financial Times, “US debt ceiling fears cast shadow over Fed plans” reports that the Fed’s plan to stop quantitative easing might be imperiled by a Congressional stand-off over the US debt ceiling at the end of this September.

Our federal government’s debt limit is currently $19.8 trillion. If exceeded, the U.S. Treasury can’t borrow any more money. Unfortunately, we’ve hit that limit already back in March. Congress has been tweaking the law so that it had more time to do something about the debt limit.

The FT’s article mentions that a number of financial experts are worried because so far Congress’ and the President’s record on passing major legislation has remained at zero.

If their fears come true, there could be major spending cuts (insisted upon by the Freedom Caucus and other right-wing Republicans). Or even more worrisome, there might be a complete government shutdown.

Clearly this would impact the Fed’s plans! The Fed’s schedule for unwinding its huge debt might have to wait. This would create a crisis around the time of the next Presidential election as $777 billion of Fed debt comes due in 2018 and 2019. Continue reading →

Divided They Fall – Right-Wing Regulation

Does it seem to you that the present government is splintering apart? There are divisions between the White House and Congress; between the House and the Senate; within the House and the Senate, and within the White House itself.

And then there are The Media….

While most of the mainstream media, aka “fake news” in alt-right eyes, are focusing on how inept Congress and the President are, the fact is that both of these arms of government are moving quite quickly forwards, but toward opposing goals. Continue reading →