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Administration Tap Dances Around The Looming Threat Of Recession

"Last week we all heard the White House had their hands over their ears and didn't want to hear anything negative about the economy. There seems to have been a lot of change over the weekend," Stephanie Ruhle said.
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Stephanie Ruhle asks if the administration boxed itself into a corner if they continue to say there are no signs of a recession and 'it's the best economy ever':

"If you listen carefully to what they've been saying, they are saying everything is fine and okay now. When you push them on what about next year, you see them starting to stumble," Ruhle said.

"Behind the scenes there is definitely growing anxiety about what the economy is going to look like in 2020 and the main thing I hear people focused on doing is trying to get a trade deal with China. They obviously see it is a big overhang in the markets. In the past there's been sort of a wing in the administration that has pushed to be tough on China, tried to push back against, this 'let's just get a deal for the sake of a deal,' but even those people, I am hearing, are starting to realize the importance of getting a deal done with China if they all want a job four years from now in a Trump administration. That is number one priority."

Keeping their jobs is the priority, not avoiding the deep economic pain of another Republican-induced recession. Got ya!

"We should note if the White House is saying things are okay now, the economic forecast calling for a recession are six to 18 months out. There are not economists saying we are in the throes of it at this moment. You wrote this piece saying White House advisers are talking about this possible payroll tax cut. Back in 2011, Larry Kudlow was the one who said, payroll tax cuts don't work. They don't get people to spend any more money. So what is actually happening?"

Ruhle bookmarked the segment by playing a clip from Kellyanne Conway.

The fact is the fundamentals of our economy are very strong and you know it.

"One of the many reasons it's getting a lot of attention is because that's basically what we heard from John McCain back in 2008. Listen," she said.

Our economy, I think, still the fundamentals are, of our economy are strong.

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"He thought that and on that very same day, Lehman Brothers went bankrupt. You and I both know that was the kick-off for the most disastrous financial crisis we have seen," Ruhle said.

Sigh. Remember, kids, we learned some things 11 years ago and we should still remember:

  • Wall Street is not the real economy. The media types are invested in that narrative, but don't confuse the two.
  • Every administration games the unemployment numbers at least a little to make things look better. This administration, more so than others! People working three part-time jobs to survive does not equal "employment."
  • Keynesian stimulus works. The Trump tax cuts were the opposite of stimulus -- not because they believed it, but because they figured they'd better smash and grab while they could.
  • Republican do not know how to govern, nor do they care to learn. They are faking it. All they care about is paying off their donors. Democratics will be expected to come in and clean up their mess, and the voters will then blame them for not fixing it overnight -- because Republicans will obstruct the things they have to do. Same as it ever was.

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