U.S. Stock Market Traders Easily Manipulated By Crude Grifter Trump

We hear a lot of chatter about how Trump's mad tariff war on the entire world has wiped out wealth that was stored in the stock markets.  But what I haven't noticed is media attention to how easily Trump causes sharp daily rallies in stocks with a mere feint, a head fake of a comment implying some fabulous resolution to the tariff war he's started with the rest of the world that's going to happen. (When? Don't ask.) Starting with announcing a 90 day "pause" in imposing tariffs (excluding, crucially, China), having his Treasury Secretary, Scott "The Stock Market Whisperer" Bessent play Good Cop and periodically claim that "talks" are imminent, or maybe happening, or going to happen, or "a lot" of countries have "called" (always refusing to answer the question, "How many countries have called?"), and Trump making various vague statements that stock speculators for some strange reason find reassuring, like crying babies being shushed by having a pacifier stuck in their mouths, Trump and his accomplices have shown themselves able to cause sharp stock market rallies repeatedly over the past month. The low point for U.S. stocks was on April 8th, but since then the S&P 500 is up over 8% midday today, and the Nasdaq is up 10%, over 1,500 points. So for just over two weeks stocks have basically been in an uptrend, with ever sharper up days. 

Bessent was at it again today, opining that both U.S. tariffs on China and vice versa had to come down before talks could begin. (Notice the U.S., that is Trump, hasn't actually LOWERED the tariffs to facilitate talks. I guess they want China, which has lower tariffs (125%) on U.S. goods versus the 145% imposed on China by Trump, to go first. 

Here's an example of what a bamboozler Trump is, and how utterly STUPID U.S. financial markets are- that is, the people trading stocks all day, every day, are.

Today, Trump at about 11:20 am East Coast time, spewed a spray of empty blather about how great everything is going to be, how rich America is going to be, how "happy" everyone in the WORLD is going to be. Stuff he says year after year, just shilling as this grifter con man always does. But here's the key tell, to use a poker term:

Trump: "We are going to have a fair deal with China."

Reporter manages to inject a question into the Trumpian stream of consciousness rave: "Are you talking to them actively?"

Trump: "Actively? Everything is active." And he keeps talking, but not about China or negotiations or anything at all, just his usual repetitive upbeat con man blather. Notice how he evaded the question. The tell is that he dodged the question. He didn't say "Yes, we are talking to the Chinese." 

The U.S. isn't even in negotiations with China while exorbitant tariffs remain in place. (145% tariffs Trump imposed on Chinese imports, 125% ones China imposed in retaliation on U.S. imports to China.) Plus, Trump still won't stop lying and claiming that the tariffs will be paid by Chinese companies. That's not how tariffs work. Tariffs are paid at the point of entry to a country, paid by the importer. That is, whatever comes from China will be 145% more expensive for the U.S. importing company.

But the people who trade stocks apparently don't understand any of this. They are pushing stocks up hard today, as they also did yesterday. Another "reason" is not just what is misinterpreted as a softening of Trump's position on tariffs, or progress (!) in non-existent negotiations, but the fact that Trump changed his tune on Federal Reserve Board Chairman Jerome Powell, who he had been publicly attacking for days because Powell isn't lowering interest rates. (Another Trump distortion of reality- the chairman of the Fed cannot raise and lower interest rates on his own. That requires a vote by the Fed Open Market committee, on which the chairman has only one vote.) Trump had been publicly threatening to "fire" Powell, which he does not have the legal authority to do, but as we have seen, Trump has been doing many illegal things since January 20 when he became president again, or rather dictator as he prefers, including firing officials illegally. Seeing that the stock and bond markets were upset, Trump stopped calling Powell a "loser" (the worst epithet there is in Trump's mind, a product of his pathological upbringing by his sick father, Fred)  and said he wasn't going to "fire" Powell after all. Or rather, he merely said he has no "plan" to fire Powell. Like he ever needs a "plan" for his arbitrary and vengeful acts. 

Yet for some reason, this typical Trump capricious (and meaningless, if you parse it like I just did) change of rhetoric completely reassured the financial speculators, and the stock market especially has been off to the races in an oingoing so-called "relief rally." (As of noon, the rally is off the highs but still up 2% to 3% in the major averages, the S&P 500 and the Nasdaq..The DOW is a mere 30 stocks, so it is silly to use it as a weather vane.)

Given the relentless bias to drive stocks always higher, and the mindless chauvinistic optimism of American financial speculators, one must always assume that pushing U.S. stocks down is as hard as pushing an inflated ball underwater. It will always forcefully push upwards. The 1929-1940 stock market drought must be seen as an anomaly in the modern era. (The completely unregulated 19th century cannot be used for comparison. In that century, there was an economic panic or crisis or depression about every decade.)

                           "What, you BELIEVED that??"

Trump's Impossible Demands To Maybe Possibly Think About LOWERING His Globally Destructive Tariffs Somewhat- And the Trump Dictatorship

Elimination of U.S. trade deficits is the demand Trump has frequently repeated. That has been an obsession of Trump's for years.

He thinks trade deficits mean the U.S. is getting "ripped off." He constantly asserts that "We've been treated very badly for so long." No, trade deficits mean Americans get to live off the labor and resources of poorer (and not poorer) nations! Americans get to buy and consume products and food for much less than it would cost to produce domestically, get food that cannot be grown in the U.S. (like coffee and bananas), and American businesses get manufactured parts and products for less cost.

The other nations get dollars.

And what happens with the dollars earned by other nations? They go into funding U.S. budget deficits by buying Treasury bonds!

So how is the U.S. suffering? How is it getting "ripped off" and "taken advantage of by everyone for years," as Trump has complained for years, with great bitterness?  In fact, the U.S. has a great racket going.

Until wrecker Trump came along.

How will it be possible for, say, Vietnam, or Mexico, to NOT run a trade deficit with the U.S.? There is just too much that America as a country, as businesses, as people, want from those and many other countries, and not enough those countries can buy from the U.S. So it is an impossible demand. That means there is no plausible end in sight for the Trump tariff economic terrorism unless Trump suddenly flips his script and declares victory ("We won a great victory it's the biggest win in American history!" he'd brag in his run-on sentences style of speaking, or some such boastful blather.)

Trump has been falsely calling his punitive tariffs, intended to extort submission to his demands, as "reciprocal." Establishment media has been mindlessly parroting this fake adjective. They aren't reciprocal, because they aren't a response to any actions by the victim nations, and they are MUCH MUCH HIGHER than the tariffs those nations impose, which were in single digits until Trump started his economic warfare on the world. Trump imposed tariffs on every nation on earth, and on uninhabited territories as well.
 

A big "Fuck You!" to the World

Trump also demands that all other nations completely eliminate all tariffs on U.S. exports, and maybe he'll lower his tariffs, and on top of that eliminate all alleged "internal barriers" to U.S. exports in those countries as well as subsidies to their industries, be eliminated. (By the way, the U.S. does a lot of subsidizing of U.S. business. For example, the oil and gas business. Mining. Semiconductors. The list goes on.)

And it just so happens that a large proportion of the imports he whines about are imports by U.S. companies manufacturing their products in other countries to low the costs of production. Which is a good thing for Americans buying products and for workers in the producer countries who are provided income.

On the other hand, many American blue collar workers have been left in the lurch by this economic globalization of supply chains. To the shame of both U.S. parties of the ruling political cartel (Democratic and Republican parties) virtually nothing was done to help that class of worker.

The result is that they were ripe for the picking by a lying, deceitful, false-promising demagogue like Trump. Here's an example of the braying bombast typical of Trump, claiming he will deliver Great Things by his malicious, destructive actions: "We're going to become a wealthy nation again wealthy like never before." 

Nevertheless, even though Trump got around 74 million votes or so each time he ran, he NEVER won a free and fair election. In 2016, Hillary Clinton got about 2 million more votes than Trump, but the Electoral College, that anachronistic relic of post-colonial days, "elected" Trump president.

In 2020 Trump first tried to steal the election by getting state election officials to lie about the outcome after the votes were counted, then on January 6, 2021 sent a mob to invade the Capitol to prevent the formal certification of Biden as the victor in the Electoral College. The mob's mission included hanging Trump's vice president, Michael Pence, and murdering House Speaker Nancy Pelosi if they could get their hands on her.

Stunningly, and ominously, Trump was allowed to get away with this coup attempt by a combination of Democratic Party fecklessness and dilatory action, and the Republican Judiciary's protection of Trump, most crucially the Republican Party-controlled Supreme Court. These days Trump still bellows that the 2020 election was "stolen" from him, and now he adds that he should have simply stayed in office. 

And in 2024, as the journalist Greg Palast has documented with government data, several million black voters were either denied the right to vote at all, or had their ballots invalidated by Republican state officials. That made the difference between losing and winning for their Leader, Trump.

Trump has made himself a dictator, ignoring laws and court rulings about his kidnaps and renderings of foreign citizens legally in the U.S. to a prison in El Salvador, mass firings of government workers, shutting down entire departments and agencies created by Congress, impounding the funds appropriated by Congress, illegally firing key officials and purging the government of its internal watchdogs against corruption, such as Inspectors General.

So it is only logical that this dictator, Trump, and his accomplices, including the sinister Steve Bannon, are now saying that Trump will run for a third term, in blatant violation of the U.S. Constitution, which forbids it. Given Republican control of enough states to swing the Electoral College result, it seems more likely than not that Trump can accomplish his monstrosity.

If that happens, we will have to say goodbye to the illusion of American democracy. It's past time to wake up from that 200-plus year dream