For the past two weeks we’ve seen the U.S. stock market go off a cliff, even as other economic indicators also turned negative, thanks to Donald Trump’s failed trade war. During that time Trump has publicly and ludicrously insisted that the economy is stronger than ever, while sending out his surrogates to babble the same nonsense.
It turns out Donald Trump is singing a different tune behind the scenes – or at least his political handlers are. Trump’s acting White House Chief of Staff – who’s still in the job on an “acting” basis because no one including him wants the job on a permanent basis – has privately admitted to a group of Republican donors that the economy is in trouble.
According to Politico, Mulvaney is insisting that the recession is going to be “moderate and short” if it happens at all. But the upshot is that he’s admitting the economy isn’t in the strong and robust position that Donald Trump and his regime keep publicly insisting it’s in. Why does this matter?
Mick Mulvaney is an idiot, but even he surely understands that he’s got to try to keep the key Republican donors in the fold if Donald Trump is going to have any shot in 2020 at all. The last thing wealthy Republicans want to hear is that their precious money might be in danger because a Republican president is screwing up the economy. Mulvaney’s decision to privately warn them about the upcoming downturn is an indicator that the Trump regime privately expects the downturn to be really bad – and he’s trying to keep GOP donors from being caught off guard when it happens.
Bill Palmer is the publisher of the political news outlet Palmer Report