Richie Rich and Joe Six Pack Contemplate Their 2024 Vote
This is What Happens When Rich Folks Want Their Tax Cuts So Much That They Hand Over Power to an Actual Crazy Person
Trump’s Hissy Fit About the WSJ Editorial Board
Folks, grab a six pack and pop a big old bowl of popcorn.
The Guardian writes,
A Wall Street Journal editorial slamming Donald Trump’s tariff plans as terrible for the US economy and auto industry prompted a broadside from the president on Wednesday followed by threats to sue the media.
In an opinion piece titled Trump’s Tariffs Will Punish Michigan, the Journal argued Trump’s tariff plans would harm “US auto workers and Republican prospects in Michigan”.
Trump has threatened to impose 25% tariffs on goods from Mexico and Canada, a move the editorial argues would increase US vehicle prices, hurt auto workers and advantage Asian and European manufacturers.
“If the goal is to harm US auto workers and Republican prospects in Michigan, then by all means go ahead, Mr President,” wrote the Journal.
On his social media site, Truth Social, Trump wrote the Journal is “soooo wrong”. “The tariffs will drive massive amounts of auto manufacturing to MICHIGAN, a State which I just easily one [sic] in the Presidential Election,” he wrote.
Trump followed the rebuttal with a threat to those publishing “Fake books and stories with the so-called ‘anonymous’, or ‘off the record’, quotes” criticizing the opening month of his second presidency.
“At some point I am going to sue some of these dishonest authors and book publishers, or even media in general, to find out whether or not these ‘anonymous sources’ even exist, which they largely do not. They are made up, defamatory fiction, and a big price should be paid for this blatant dishonesty. I’ll do it as a service to our Country. Who knows, maybe we will create some NICE NEW LAW!!!,” he wrote.
The Journal’s conservative editorial board has been a persistent critic of Trump’s tariff plans, calling them “the dumbest trade war in history” earlier this month.
The Budget Resolution That Passed Last Night
Some websites aim to capture anti-Trumpers’ clicks with screaming headlines—“Trump Slides Downhill!” “Trump Humiliates Himself!” etc. etc. But I find The Bulwark’s presentations more objective, and much more useful in understanding what is actually happening, as compared with the rosy scenario sites. Besides, this video is entertaining too.
Friends, let’s never lose our sense of humor. Because the loss of our sense of humor would make it a lot harder to survive this shitshow.
Last night’s nonbinding budget resolution directs the House Energy and Commerce Committee to find $880 billion in budget cuts, over the coming decade, from the programs which that committee oversees. According to Newsweek today,
Trump has said multiple times that Medicaid would not be affected, telling Fox News last week that it would not be “touched.”
But the House Energy and Commerce Committee would have to find this money, out of Medicaid, Medicare and the Children’s Health Insurance Program.
If the committee takes its cuts from everything that is not health care, reducing this spending to $0, it would still be more than $600 billion short, according to analysis by The New York Times.
I tried, without success, to get a definitive answer as to what percentage of Medicaid funding would be lost if $880 billion were cut over a ten-year period. That’s a hard number to find for various reasons, including the fact that there will be lots of political back-and-forth about spending levels over the next decade.
Even so, there’s no doubt that $880 billion is a nice chunk of change.
On the one hand, clearly, axing $880 billion will let a whole lot of Medicaid spending continue. On the other hand, and equally as clear, decreasing funding by $880 billion would most assuredly “touch” Medicaid, contrary to Trump’s promise.
And who would be hurt as and when Medicaid is in fact “touched”?
According to a reliable source, for the year 2023, there were 24,046,700 white people under the age of 65 enrolled in Medicaid. In other words, the 24 million poor white Medicaid recipients don’t count all the white grandmas who have run through their savings and are relying on Medicaid to stay in their nursing homes.
Poor people supported Trump disproportionately in 2024. White people supported Trump disproportionately in 2024. And if you look at the combined category—poor AND white—they were mostly Trump supporters.
But it was still a close election. And the number of poor white folks who will feel pain from significant Medicaid cuts vastly exceeds Trump’s tiny margin of victory.
Speaker Johnson Prays for Cuts in Medicaid That Will Throw Grandma Out of her Nursing Home, Into the Street
Happy Valentine’s Day, My Fellow Americans
Actually, It’s Not Just Misunderstand and It’s Not Just Poor Strategery—It’s Magical Thinking
The two posts immediately below deal with Trump’s fundamental misunderstanding of how money and interest rates work. One quotes in full a Wall Street Journal Editorial Board piece published late yesterday. The other gives some context: it explains why the fact that these truths are now coming from the WSJ Editorial Board, not some other publication, is a man bites dog story, not a mere dog bites man piece of news.
This is correct as far as it goes, but it does not go far enough. There are all manner of things that I do not understand. But that does not mean that I engage in magical thinking. I do not fancy myself the God of Genesis 1—who just says things, and then they are so.
King Canute knew that he could not make the tide turn back just by telling the tide to turn back.
Trump thinks that King Canute was wrong.
We have elected someone with severe mental illness.
Those who voted for him are getting the president they richly deserve.
Trump’s Brain
The WSJ Editorial Board Tells Donald That He Doesn’t Know Shit From Shinola, and That His Approval Rating is About to Sink Like a Stone
The Wall Street Journal Editorial Board writes,
Trumponomics and Rising Inflation
The President calls for easier money even though consumer prices keep rising. Does he want even higher prices?
The Editorial BoardFeb. 12, 2025 at 5:33 pm
“Interest Rates should be lowered, something which would go hand in hand with upcoming Tariffs!!!” Mr. Trump posted on his social-media site. The layers of intellectual confusion here are hard to parse, especially since higher tariffs will mean higher prices on the affected goods. But perhaps the President wants the public to look elsewhere when assigning blame for rising prices.
Yet if he’s trying to blame the Federal Reserve, which controls short-term interest rates, he has the analysis backward. Rising inflation means the Fed must be more cautious in cutting rates. This is how financial markets read the news that the consumer-price index (CPI) rose 0.5% in January. Long bond rates rose sharply, with the 10-year Treasury note popping to 4.63% from 4.53%. This reflects market worry over inflation.
The concern is warranted based on the trend in CPI, which has risen each month since a 0.2% increase in October. The 12-month increase in CPI is now back to 3%, up from a recent trough of 2.4% in September. So-called core prices, less food and energy, rose 0.4% for the month and are now up 3.3% over the last 12 months.
The price increases were broad-based, hitting insurance, used cars and trucks, airline fares, medical care, haircuts, day care, sporting events, cable television, and more.
Mr. Trump isn’t responsible for this after only three weeks in office. But someone should tell him that the mistake goes back to the Fed’s premature interest-rate cut of 50 basis points in September. Long bond rates shot up immediately and have stayed higher, but the Fed still cut another 25 points in November.
Fed Chair Jerome Powell seems to recognize that mistake because he has been saying for weeks that the central bank is in no rush to cut further. The last thing Mr. Trump should be doing now is demanding that Mr. Powell cut rates further and faster—unless the President wants inflation to resume its Biden-era climb.
The Powell Fed is likely to ignore Mr. Trump, and well it should. But the President’s demand illustrates another risk of Trumponomics. As a real-estate investor, Mr. Trump has long been an easy-money guy. He likes low rates and a weak dollar, which could lead to higher prices, all other things being equal.
As a political matter, an inflation revival may be the biggest threat to the Trump Presidency. Mr. Trump was elected as voters reacted to inflation and falling real incomes under Joe Biden. Real average earnings are flat over the last three months as inflation has bounced up. If this persists, Mr. Trump won’t have a 53% job approval rating for long.
Schadenfreude, Y’all
Dumb and Dumber
Wall Street Journal Editorial Board, The Dumbest Trade War Fallout Begins: Canada and Mexico vow retaliation in response to Trump’s tariffs, amid new economic uncertainty
What Mango Mussolini Thinks He’s Doing—A Clever Way to Transfer Wealth from the Poor to the Rich
The WSJ doesn’t say it, so I will. As far as I can tell, Orange Jesus knows full well that tariffs are going to increase inflation, cost jobs, and hurt his supporters. But he thinks they are a complicated, and therefore clever, way to generate a shit load of revenue and thus finance tax cuts for the billionaires.
As for the foreigners, Trump hates them all, but he particularly hates American allies. As the WSJ points out, Mexico and Canada will be hurt even more than his American supporters will be hurt. For Mango Mussolini, that’s a feature, not a bug.
Some Thoughts from the Wall Street Journal Editorial Board
Now back to the Wall Street Journal Editorial Board, which writes,
“WILL THERE BE SOME PAIN? YES, MAYBE (AND MAYBE NOT!). BUT WE WILL MAKE AMERICA GREAT AGAIN, AND IT WILL ALL BE WORTH THE PRICE THAT MUST BE PAID,” Mr. Trump posted on Truth Social on Sunday morning. He also included a blast at these columns for leading the “Tariff Lobby” after our Saturday editorial called his 25% across-the-board tariffs on our friends and neighbors “the dumbest trade war in history.”
We appreciate Mr. Trump’s attention, though we’re anti-tariff and not lobbyists. But bad policy has damaging consequences, whether or not Mr. Trump chooses to admit it. Mr. Trump can’t repeal the laws of economics any more than Joe Biden could on inflation.
***
Tariffs are taxes, and when you tax something you get less of it. Who pays the tariff depends on the elasticity of supply and demand for the specific goods. But Mr. Trump wants American workers and employers to take one for the team. Hope you don’t lose your job or business before the golden age arrives.
The economic fallout began Saturday evening as Canada said it will retaliate with a 25% tariff on $30 billion (Canadian dollars) of U.S. goods, with another C$125 billion to follow in three weeks. Mexican President Claudia Sheinbaum also promised to retaliate.
Canada’s new border taxes will hit orange juice, whiskey and peanut butter—all from states with GOP Senators. Prime Minister Justin Trudeau said Ottawa’s tariff list would also include beer, wine, vegetables, perfume, clothing, shoes, household appliances, furniture and much more. He said Canada could also withhold critical minerals.
Note that Canada’s Conservative opposition leader, Pierre Poilievre, also called for retaliation. Mr. Poilievre is the favorite to be the next Prime Minister and he rightly said the trade war will damage both countries. But he said Canada had to stand up for its “sovereignty” and protect its economic interests.
Mr. Trump’s tariffs are already roiling North America’s energy markets, which are highly integrated. The President implicitly recognized the risk by hitting Canada’s energy exports to the U.S. with a lower 10% tariff. But that will still hurt Midwestern refiners that rely on Canadian oil. Canada and Mexico could send more of their oil elsewhere for refining, perhaps even China.
Canada’s expanded Trans Mountain pipeline runs from Alberta to the West Coast and has spare capacity. It could be used to increase tariff-free oil shipments to Asia that would hurt California refineries that now import oil from Trans Mountain. California could have to import more oil from the Middle East.
Mr. Trump says the tariffs will revive U.S. manufacturing. But Jay Timmons, CEO of the National Association of Manufacturers, said in a statement that “a 25% tariff on Canada and Mexico threatens to upend the very supply chains that have made U.S. manufacturing more competitive globally.”
He added that, while his members understand the need to reduce fentanyl flows to the U.S., “the ripple effects will be severe, particularly for small and medium-sized manufacturers that lack the flexibility and capital to rapidly find alternative suppliers or absorb skyrocketing energy costs.”
Many more trade groups have criticized the tariffs, including even U.S. aluminum makers who benefited from tariffs in the first term. Canada accounts for more than half of U.S. aluminum imports (owing to its cheap hydropower) that secondary and downstream manufacturers use.
***
None of this means the Trump tariffs will tip the U.S. economy into recession. U.S. growth may be strong enough to absorb the blow from tariffs, as it was after Mr. Trump’s more modest levies in the first term. But the same can’t be said about Mexico and Canada, where growth is weak and which depend on U.S. markets for much of their GDP.
The tariffs may also not cause a surge in the general U.S. price level. Overall inflation depends far more on the Federal Reserve’s monetary policy. But prices will increase for most tariffed goods, which will be painful enough.
The tariff broadside also adds new policy risk and uncertainty that could dampen business animal spirits. Markets have been pricing in an assumption that Mr. Trump would step back from his most florid tariff threats, or limit tariffs to China.
The hammer blow to Mexico and Canada shows that no country or industry is safe. Mr. Trump believes tariffs aren’t merely useful as a diplomatic tool but are economically virtuous by themselves. This will cause friends and foes to recalibrate their dependence on America’s market, with consequences that are hard to predict. How this helps the U.S. isn’t apparent, so, yes, “dumbest trade war” sounds right, if it isn’t an understatement.
Facing MAGA 