President Trump managed to put together a new NAFTA deal with Canada just before the deadline. In his latest podcast, Peter Schiff called the “NAFTA rebrand” a marketing fraud.
When Donald Trump was a candidate, he said NAFTA was the worst trade agreement ever negotiated by anybody. Even as he was taking credit for the new deal he just negotiated, Trump reiterated how bad the original deal was. Now he is saying the new NAFTA is the greatest deal ever negotiated.
So, we went from the worst deal in the history of deals to the best deal in the history of deals. The problem is — it’s basically the same deal. I mean, the only thing that’s really changed is the name. And we went from a good name to a lousy name.”
Sept. 30 marked the end of the federal government’s 2018 budget year. According to data released by the US Treasury Department, the federal debt grew by nearly $1.3 trillion in fiscal 2018 – $1,271,158,167,126.72 to be exact. It was the sixth-largest fiscal-year debt increase in the history of the United States.
So much for that Republican Party fiscal responsibility.
The total federal debt currently stands at $21.5 trillion.
In a recent podcast, Peter Schiff talked about the “Trump tariff put” – this idea that the president will be able to call off the trade war to rescue the market should it start to fall. Peter called that idea nonsense.
It is the type of wishful thinking, the type of just ignoring all of the bad news, whistling past the graveyard, the type of mentality that you have in a bull market where everything is good news and there is nothing to worry about.”
In his most recent podcast, Peter tackled another similar myth – that a divided government will be bullish for the market.
The Dow Jones pushed into record-high territory again late last week. As Peter Schiff pointed out in his latest podcast, Pres. Trump was out there pointing out the record run on Wall Street and claiming responsibility for this bull market. Just turn on Fox News and hardly a segment will go by that somebody isn’t reminding you about how great the economy is. Peter said it reminds him how people were talking up George W. Bush before the Great Recession.
The trade war between the US and China escalated again this week. The US slapped an additional $200 billion in tariffs on Chinese goods. The tax starts at 10% and will increase to 25% by the end of the year. China retaliated by announcing another $60 billion in tariffs on US goods.
As Peter Schiff noted in his most recent podcast, people still think the US will win this trade war.
Through the last several presidential administrations, the US has maintained a “strong dollar” policy. As Peter Schiff pointed out in his most recent podcast, it wasn’t so much that you could pinpoint the specific tenets of the policy. It was more about the rhetoric that came out of Washington D.C. Everybody talked about the strong dollar being in the national interest.
Having the belief that there was some kind of hidden strong dollar policy helped to create confidence in the dollar. Even periods where the dollar was declining, perhaps it would have declined even more had it not been for the belief that there was some kind of strong dollar policy.”
But times have changed. As Peter put it, “It should be pretty obvious that Donald Trump has a weak dollar policy.”
As Jim Rickards put it in a recent column, there’s a lot of “happy talk” coming out of Washington D.C.
To hear Donald Trump tell it, we might be in the midst of the greatest US economy in history. When the Q2 GDP number came in at 4.1%, the president called it “an economic turnaround of historic proportions.” Of course, Trump isn’t alone in his optimistic hyperbole. Politicians and pundits all across the mainstream keep telling us everything is great. They see growth from horizon to horizon. Employment is booming. Americans are spending.
The problem with all the happy talk is that it doesn’t have much to do with reality. The Trump economy looks pretty much like the Obama economy.