Friday, January 11, 2019

"Every two weeks of a shutdown trims 0.1pp from growth"

So, Trump is bringing on the Recession by allowing it to happen much much quicker each day of the shutdown. I'm thinking declaring a National Emergency likely would spur a selloff on Wall Street with a market drop at that point too. The reason might be panic selling because people are afraid of a US Hitler taking on emergency powers and closing the Congress and Supreme Court. National emergencies at the level of what Trump could maybe actually do aren't funny at all but instead potentially the permanent end of our democracy. I blogged about the problems of this earlier since the first of this year I believe.
Here are  articles that illustrate this problem:

begin quote from:
Trump also said he will "probably" declare a national emergency if the White House and Congress cannot reach a deal to end the shutdown.
"We think a deal will be reached to reopen the government, but only after economic, financial and/or political pain is felt," Joseph Song, an economist at Bank of America Merrill Lynch, said in a note to clients. "Every two weeks of a shutdown trims 0.1pp from growth; additional drag is likely due to delays in spending and investment."

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