The dollar declined sharply, pushing gold up late last week as Pres. Trump criticized the Federal Reserve’s interest rate policy. Trump took aim at the Fed during an interview on CNBC, saying he’s “not thrilled” with the central bank’s push to raise rates.
Because we go up and every time you go up they want to raise rates again. I don’t really — I am not happy about it. But at the same time, I’m letting them do what they feel is best.”
Trump also blasted the European Central Bank and the Bank of China, accusing them of currency manipulation. Trump says the two banks are intentionally weakening their currency to disadvantage the US.
In his latest podcast, Peter Schiff said he thinks the president is saying all of this in order to have a place to put the blame when the economy tanks.
Dan Kurz runs the DK Analytics website where he posts detailed breakdowns of complex economic issues. We recently interviewed Dan as part of our It’s Your Dime Series. In his most recent post, Dan used his analytical skills to break down the first 18 months of the Trump administration.
Dan finds a little good, a little bad and even some ugly in the first year-and-a-half of Trump’s term. Dan likes the fact that the president has called out fake news, the fact that he seems to be pushing back against the establishment/deep state and his Supreme Court picks. On the other hand, Kurz believes the growing trade war could be bad news for the US economy and sees some troubling Hooverism developing.
Is it just me, or has modern American politics devolved into little more than petulant playground namecalling devoid of substance?
I stumbled across this latest outrage as I was perusing the depths of the internet the other day – presidential “challenge coins.” Apparently, according to the mainstream pundits, President Donald Trump can’t even get a fun little presidential tradition right.
The New York Times did an entire feature story on how Trump has ruined presidential challenge coins. I’ll bet most of you haven’t even heard of challenge coins. But they’re a thing. And according to our intrepid NYT columnist, Trump’s execution of this august tradition is a complete outrage!
Just like that, it appears the trade war is over. Although, as Peter Schiff pointed out in his latest podcast, it wasn’t really much of a war.
I don’t think I should call it a ceasefire because nobody actually fired a shot, and it’s been more of a war of words than a real conventional battle. I mean, basically a lot of saber-rattling, not a lot of fencing. But I think what happened today is we called a truce. Both sides sheathed their sabers and agreed that there’s not going to be a war.”
President Trump’s new economic adviser did an interview on CNBC’s Closing Bell Wednesday and offered a little investment advice.
I would buy King Dollar and I would sell gold.”
So, should you follow Larry Kudlow’s guidance?
Of course, that’s up to you. But Kudlow doesn’t have the best track record when it comes to predicting the future. On the cusp of the 2008 financial crisis, he was among the mainstream pundits saying the whole subprime mortgage thing was “no big deal.”
The dollar has shown some resilience this week. The dollar index clawed back after hitting multi-year lows last week. Meanwhile, gold saw its worst single-day decline in more than a year on Tuesday.
One thing that hasn’t changed is the upward pressure on bond yields. In his most recent podcast, Peter Schiff said he thinks this is the reason we’re still seeing some life in the dollar and downward pressure on gold.
It was interesting watching people on the left side of the political spectrum become practically giddy as the stock market tanked on Monday. It seems they couldn’t wait to pin the collapse on Donald Trump.
Of course, the president has set himself up to take the fall by constantly taking credit for this bubble economy. But as Peter said during an interview with Stock Pulse during the Vancouver Resouce Investment Conference. the only thing you can blame Trump and the Republicans for is doing what everybody else did – pretend government can give Americans a free lunch.
Peter Schiff recently appeared on InfoWars with Alex Jones and took on the notion that Pres. Trump is in the process of fixing the economy. In fact, Peter pushed back hard against Alex, saying we are on the verge of a crash and Trump is going to get the blame.
I agree with you. The economy is going to blow up. But it’s going to blow up like a bomb. It’s not a good thing. It’s a bad thing. Unfortunately, that’s what Trump has inherited from Obama. But it’s not even really just Obama. It’s the Federal Reserve. It’s the monetary policy that has been passed like a baton from Clinton, to Bush, to Obama, and now to Trump.
Peter predicted the collapse will happen under Trump’s watch. Peter has said in the past that Trump is not helping himself by taking credit for the soaring stock market. And when things go south, he’s going to get the blame.
He owns the stock market bubble. He and the Republicans own the economy now thanks to the tax cuts. They’re not going to make any difference, but they are going to give the Democrats a reason to blame it all on Trump and the Republicans.”
President Trump has completely flip-flopped the way he looks at economic data. When he was on the campaign trail, he called the stock market a “big, fat, ugly bubble.” Now that he’s sitting in the Oval Office, he takes credit for the same bubble.
He’s done the same kind of 180 when it comes to employment data. On the campaign trail, he called 5% unemployment “the biggest hoax in American history.” But when the jobs report came out last week, Trump eagerly tweeted, “The unemployment rate remains at a 17-year low of 4.1%. The unemployment rate in manufacturing dropped to 2.6%, the lowest ever recorded. The unemployment rate among Hispanics dropped to 4.7%, the lowest ever recorded…”
Peter Schiff called Trump out on his flip-flop in his most recent podcast.