The Wall Street Journal just did God’s work…
Recently, White House Trade Advisor Peter Navarro dismissed concerns that the disastrous trade policy could ignite a recession. He accused WSJ of “sounding like The People’s Daily, the Chinese Communist propaganda arm.”
Well, the Journal was not pleased, writing a scathing editorial that took Navarro to the woodshed.
Here are excerpts:
That was novel as criticisms of these columns go, but perhaps Mr. Navarro would care to comment again after Wednesday’s recession warning from the bond and equity markets? Are they Commies too?
…
Stocks fell about 3% on the day on bad economic news out of Germany, China and the bond markets. Europe’s largest economy shrank by 0.1% in the second quarter as exports fell amid trade and Brexit uncertainty. Chinese readings on factory production, consumption and employment also revealed an economy that is slowing sharply. China’s industrial production increase of 4.8% was a 17-year low.
A Chinese recession would mean a European recession, which would send U.S. growth down too. The impact would be worse if slower growth triggers capital flight from China and there’s a disorderly fall in the yuan.
It finished off with this goodie:
Someone should tell Mr. Trump that incumbent presidents who preside over recessions within two years of an election rarely get a second term.
Amen!
While a recession will not happen tomorrow, it is likely to occur in the next few years, so President Trump should hope he loses next year.
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