I did this interview Tuesday night on The Ochelli Effect about Donald Trump and has remarks a week ago about the events in Charlottesville, which I believe caused a political collapse for him the next day when he was rebuked by corporate America, the Joint Chiefs of Staff, and leaders of his own party in the Senate.
Whether you like Trump or not what is obvious is that there is growing political instability in Washington DC and what we are now seeing is Donald Trump play to an increasingly narrow national base of public support and talk more and more like a demagogue.
I am scheduled to be on this show next week on Tuesday and will talk more about the real logic behind what Trump is doing that is not madness and people are missing. The night before Steve Bannon was fired several top Trump donors met with Trump. Many have left them, but these men led by Robert Mercer seem to have a game plan.
There is a logic to what mainstream TV is labeling as personal madness.
I actually went up to Charlottesville to do a video for WallstreetWindow, which you can watch below.
I actually went to Charlottesville in order to do a movie for my financial website. I believe the stock market is in a correction that will pick up in the fall. During the start of a drop you get big swings up and down that finally end with the market breaking through a support level and falling harder. So this is the process I think is starting and wanted to talk about it at the UVA campus as a backdrop.
I also went to the downtown area where the demonstrations occurred and the driver ran over people and killed someone.
I also penned this note on Sunday for my financial subscribers. I normally don’t talk about politics like this in it, but this isn’t normal times. (If you want to get on my free financial email list go here and opt-in).
Are More Donald Trump Angry Fits Coming? (08/20/2017)
This morning I’m actually in Charlottesville, Virginia heading back home today. I came up here to do a vide for the website on the exact spot those Nazis were parading. People are posting all sorts of conspiracy theories about it, but I went to college there, live two hours away, and so I also had the ability to drive up there and find out for myself what really happened. I can tell you this—that the claims of Donald Trump’s buddy Alex Jones that the Nazis that came there were Jewish actors are not true.
The country became all focused on that city and the Nazi nuts that came to it and Donald Trump’s political statements last Tuesday night about them that were a complete political disaster for him. I know people that are in Confederate heritage groups. And one thing about this event none of these groups went to it. The event in Charlottesville was organized by KKK and American neo-nazi groups and called Unite the Right. The expressed purpose of the event was to bring everyone who came to it under their leadership. And so when they invited legitimate Confederate heritage groups in Virginia to come too they did not go.
So when I heard Donald Trump say that there were some “fine people” in that group of Nazis and Klansmen I knew he was wrong and had stepped into complete political oblivion. Stories in the media say that Steve Bannon was showing Donald Trump poll data that proved to him that making an issue out of defending Confederate monuments could be a winning issue. And so Trump tried to do that Tuesday night.
If Donald Trump had talked with any Republican Party county chairman anywhere in the South they would have told him not to do that, because the blow-back would be so unbelievable that it would destroy the entire party if he continued. They also would have told them that even though that poll they are looking at might show them that more whites want the statues up then down that on election day no one votes on that issue and they only will motivate those against them more after Nazis march through a street and someone gets killed. There is a difference between generating hits to a website or building a media audience and turning out real voters. In the end people don’t care that much about these things as Bannon thinks.
But Trump and Bannon are so disconnected from the rest of the country (Bannon seems to be believing the sick Brietbart propaganda rants of his own creation as if they are real) that they simply had no idea what they were doing. Trump’s remarks I am certain angered Republican Party leaders throughout the South as they angered business people. No one wants to see more riots in their cities stoked on by the President of the United States.
The reports are that after Trump’s performance Trump and Bannon thought they had scored a great victory. But before he talked about the statues he went on rants against corporate CEO’s who had been his friends before, showing once again that it’s completely useless for anyone to try to work with him in Washington.
Over the past few weeks we have seen total chaos from Donald Trump as if he is a reality star and not the President of the United States. Three weeks ago we saw him put this Mooch character on the TV set. The week after that he made big talk about nuking North Korea without consulting any of his advisors first. Then like a day after that he talked about maybe invading Venezuela. He simply made it hard to take anything he says seriously when he makes unbelievable statements and then claims that ANYONE who disagrees with him in anyway is “fake news” over and over again. And then you had the Tuesday meltdown last week to bring it all to a watershed.
What is important though is what happened on the day after Tuesday. There are various power elements in American society that a President has to stand on top of to govern. You have the political party leaders, the voters, the Wall Street banks, corporate America, and the military-industrial complex.
Well on Wednesday the Joint Chiefs of Staff rebuked Donald Trump. Groups of Republican Senators denounced him with one of the most well respected and serious of them questioning his “stability” and corporate America all turned their backs on him. For someone who is a supposed “deal maker” there is no one there to do deals with him anymore, because he has burned too many people with his rants and then disgraced himself on Tuesday night.
The only people he has left is his base of people now that are those who are of the ilk that visit the Brietbart website and people like the Robert Mercer family connected to the movement of maniacs created by these outlets such as it is who actually think that being incapable of seeing the difference between Nazis and people that do not like them is somehow a virtue. Robert Mercer funds this weird Milo character to tour college campuses. Listen to Milo and you are listening to Mercer. Well that type of thinking has no place in the Republican Party and Republican Party leaders in the American South know that more than anyone else.
If Trump would have talked to any Republican Party county chairman down here they would have told him to stop and shut up! The fact that he didn’t know better told me he is totally out of touch with the party and the nation. He is only catering to Breitbart and conspiracy types.
The important thing now is that in terms of political capital Donald Trump has none. All of it evaporated on Wednesday. The political system and the American people, except for his small base of true believers, are going to essentially ignore him. It’s like a stupid TV show that was interesting and fun for awhile and now you just change the channel. Things will calm down for now and most people are just going to move on with their lives.
The problem is we are now in what appears to be a stock market correction. A fifteen percent drop is nothing unusual for the market, but it is possible that Donald Trump makes it worse by going on more and more rants that hurt people’s confidence even more when the market drops.
I do not really think Donald Trump is going to do anything bad himself or am worried about him as I think he’s basically a figurehead now. I think he has shown that his statements and words are basically meaningless and that the government will go on no matter what he does. He is not going to launch a nuclear war. There are good people in both parties and people that work in all various branches of government. They go to work every day just as business leaders do and employees doing the best they can no matter what Trump rants about on Twitter.
The problem is that he might cause others to panic if the stock market drops. He could lash out more against corporate America or even start to lash out at the Federal Reserve. He promoted the stock market bubble as it expanded this year claiming it was evidence of his leadership. What will he do when it starts to drop? Will he rant more and more to cause people’s confidence in the economy to falter too? His Charlottesville comments show that he is incapable of acting as a national leader in moments of crisis. The best thing that could happen is if someone can advise him and get him to listen to them so that he would stop tweeting, stop ranting, and to just come out and read announcements when he is needed.
But if he doesn’t do that and if the stock market falls will a Trump factor come into play that makes a market correction turn into a bigger drop than it would have been otherwise? I can see a strange situation develop where as the market drops Trump makes crazed statements to magnify things and make them worse. The stock market went up after the Trump election partly on hopes that he would be able to make deals to help stimulate the economy. But now that he has little real political capital and has no ability to make deals (the business world turning their backs on him last week tells you this) he is now a risk factor to the stock market going forward.
I’ll add that I noticed on Friday that Carl Ichan left the Trump administration. He was short going into the election and reportedly went long millions and millions of dollars of stocks the night that Trump won. I would suspect he is shorting the stock market again. Ichan leaving is noteworthy as he is a close friend of Trump and raised tens of millions of dollars to help him get elected President. One problem corporate America has with Trump is that the far-right Mercer style outlets began to demonize them too. On Wednesday morning Steve Bannon went on a wild rant in an interview saying that he wants trade wars with China and to fight Wall Street. Then that afternoon Rush Limbaugh said that corporate America was full of “socialists” and “out-and-out leftists” so that is the only reason they left Trump trying to demonize them too. I do not think any corporate CEO would be comfortable with a movement trying to create a crowd of rabble (involving even Nazis types) that might turn on them too. Mercer has made himself into a figure of disgust for many in the world of New York finance because of the environment he has fostered. Imagine what you would think if you are a corporate CEO and read that Bannon interview and then heard Limbaugh say that on the radio soon afterwards after watching a crazed crowd of Nazis march with torches in an American city.
There are things that Limbaugh said last week about what happened in Charlottesville that are not true either or at best could be called mischaracterizations. I know because I have been here in person talking to people here. It tells me that he doesn’t care if what he says is true or not and only says things to play the role of a rabble rouser. He claimed on Friday that the United States is “on the cusp of a second Civil War” when it is not. Do people like him say that because that is what they want? The sky is not falling even if it might look like it is at times.