Random thoughts #65

Random thoughts #65

Trump keeps crowing about foreign countries investing in the US. Japan has agreed to invest $500 billion. The EU has agreed to invest $600 billion. Where do you think the $500 billion from the Japanese and the $600 billion from the EU come from? It will be part of the US dollars the countries accrue through the sale of goods to the US. When the investment occurs, our trade deficit will widen. Won’t somebody tell the president that the only way that the trade deficit will decline is if the foreigners buy American exports. If instead of buying more US goods, when the foreign countries use those dollars to invest in the US then the trade deficit will increase. Since Trump thinks that trade deficits endanger national security, why is he making the deficit larger? Instead he should demand that the countries buy more US exports instead of investing it in this country.

Hulk Hogan just died. I met him once. I was in a Crown room at the Atlanta airport when he walked in wearing his signature cut off tee shirt and a bandana, totally in violation of the dress code. I guess he was always in character and who was going to tell him that he couldn’t come in?

Pinnacle and Synovous banks have announced a merger. Two of my former students are presidents of Pinnacle banks and a University of Georgia classmate, Jim Blanchard, was the CEO of Synovous who converted it from a sleepy bank in Columbus, GA into a financial powerhouse, By the way, at the same time in Georgia’s College of Business were three US senators, Reagan’s OMB secretary, Jimmy Carter’s chief of staff, the chief economist of another major US bank, the Synovous CEO and of course me.

Trump toured the Federal Reserve building to inspect the renovation. Trump said that the cost was $3.1 billion. Powell corrected him saying it was $2.7 billion but Trump, insisted that it was $3.1. Basically, who really cares? That cost overrun is within budget in government spending. What was interesting is that Powell did not back down to Trump. Not exactly friends, these two.

The Fed’s Open Market Committee meets July 30-31 and my guess is that it will lower the Fed Funds target rate by 25 basis points just to further tick Trump off who wants them to lower it by 350 basis points. (a basis point is one-one hundred of a percent).

Trump should just shut up about Powell. His term ends in May 2026 and Trump can pick some lackey to take his place. That senate confirmation hearing will be a must see. You think the democrats lose their minds on a Trump supreme court nominee? Wait until you see how badly they will go off the deep end in this one. Elizabeth Warren is no longer on Senate banking so it will be interesting to see who takes up her mantle – Chris Van Hollen maybe? Tennessee’s Bill Hagerty is on the committee and Louisiana’s John Kennedy will provide comedic relief. Tim Scott is chair,

France just announced that it will recognize a “Palestinian state.” Problem is they didn’t know where this so-called “state” is located. I guess if the French can ever find it, they would be able to recognize it. Bon soir le etat, Britain is also making noise that it will recognize it too, if it can find it. Since Trump objects so vehemently why doesn’t he threaten to double their tariffs?

Some dems are trying to stop the Blue Angels from participating in Seattle’s Seafair. There is a billboard claiming noise pollution and damage to their precious climate. Some looney woman is suing the Blue Angels accusing them for killing her cat with their noise. Of course, they can’t come out and say that they hate America. If these folk were serious about jet pollution– which they are not – they would be suing every leftist owner of a private jet to park it. Wouldn’t they? They also could down the street and protest Boeing.

When the Supreme Court ruled on Trump’s immunity from prosecution, the left had a cow. “This decision by the Supreme Court today is a travesty and perhaps the most dangerous judicial opinion from our Supreme Court in generations. By smooth and naive legalese, these partisan justices have created a framework for a President to commit any acts he or she chooses.” “This opinion is nothing less than a blueprint for a lawless dictator to take root in the Oval Office of the White House.” “The Supreme Court’s ruling gives expansive immunity to a corrupt president who purports to use acts within his official authority to conspire to overturn a lawful election.” What are they saying now that Obama has been accused of treason by Tulsi Gabbard for initiating the Russia hoax? Gabbard says that their silence speaks volumes. President Trump said that Obama has immunity and should thank him. “He owes me big. Obama owes me big,” 

Indeed he does. I have said this before that the democrats should be helping Trump explore the limits of the executive rather than fighting him at every turn. The next democrat who is president will thank Trump and of course the Trump supporters who are then will be resisting the same actions of a democrat when one is in the office.