Trump

So Tweeteth the Donald

By David Stockman  |  June 12, 2019

If there’s one thing you could say in favor of the last Republican president to face a Democratic impeachment inquiry, it’s that Richard Milhous Nixon pretty much kept his fulminations and fury inside the White House.

Tricky Dick’s dark, expletive-ridden rancor was indeed recorded by the taping system Alexander Butterfield made famous. But administration-edited transcripts weren’t made public until April 30, 1974. And the full measure of his paranoid anger didn’t become public until well after Nixon had been exiled to San Clemente.

Thirty-seven was a president proud of his overall life in the arena. And he was equally proud of a postwar system he had a key role in shaping. He was – for good and for ill – a 20th century statesman

And here we have Donald John Trump.

His milieu is Twitter. He aims to wreck the establishment. And he – a creature of the last century unbound by the new century’s technology – will do it tweetstorm by tweetstorm. In recent months, the Tweeter-in-Chief has averaged about 10 240-character official statements per day.

At any given moment, he’s liable to ignite a firestorm of political warfare inside Imperial Washington and/or touch off a real war in the Middle East, on the South China Sea, or along our southern border.

And this is with the stock market grinding again at all-time highs…

Forty-five will tilt his Twitter feed when his fake boom goes bust. And the more he attacks America’s trading partners, the closer that eventuality comes.

He’s already isolated amid a shrinking circle of White House aides and family. At the crucial hour, he’ll likely give up conventional governance and presidential duties entirely.

He’ll up his campaign of perpetual aggrievement. He’ll blame-shift. He’ll watch Fox & Friends. He’ll shit-tweet the Federal Reserve, “Sleepy Joe Biden,” the Democrats, disloyal Republicans, the Chinese, Mexico, the Iranians, the Turks, German auto exporters, Canada, and Bette Midler.

It’ll be a biblical eruption, “bluster” and “bravado” replacing “bombast” and “braggadocio” in the usual lineup with “bile” and “bullshit.”

And that’s exactly the last thing the Everything Bubble needs right now.

At the end of the day, Peak Trump at 2,954 on the S&P 500 always depended absolutely on Imperial Washington’s fiscal and monetary authorities doing whatever it takes to sustain a debt-ridden U.S. economy and extend the speculative rally on Wall Street.

Alas, the third market top may well be the charm that ends the Everything Bubble.

And there will be no rescue like there was in 2008-09.

I was a young staffer for GOP leadership in the House of Representatives in 1974. I experienced first-hand the political warfare of a period marked then by Watergate but also scarred by more than a decade in Vietnam and starting to suffer the impact of runaway inflation.

It was ugly.

But the level of partisan rancor on display today in Imperial Washington is orders of magnitude greater than what I witnessed.

And the Tweeter-in-Chief is totally unique when it comes to this kind of thing. He’ll unleash brutish bully-boy assaults on anyone, anytime, anywhere if he chooses to blame them for the trouble of the moment.

When the Everything Bubble goes down, there will be no “Troubled Asset Relief Program.” Steve Mnuchin won’t get close enough to bend the knee and beg Nancy Pelosi for the votes to bail out his buddies, as Hank Paulson did. Democrats are here to avenge Hillary.

Indeed, when the end comes, all the Donald has is his tariffs and his tweetstorms.

It will be uglier.

You Better Be Ready

Desperate times call for… “common sense” measures.

And these are desperate times… Markets are corrupted by monetary central planning. They’re confused. And the road back is going to be treacherous.

We’re looking at a major re-pricing for all financial assets. And thousand-point intraday or day-to-day swings are part of that equation. Those can be frightening… for “buy and hold” investors.

I have a different approach, one that combines strategy and tactics into a plan flexible enough for you to survive and thrive amid the coming chaos. It’s called “The Stockman Model.”

All we’re after is a little stability, perhaps a chance to pocket a windfall when opportunity presents…

To common sense,

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David Stockman

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David Stockman

David Stockman is the ultimate Washington insider turned iconoclast. He began his career in Washington as a young man and quickly rose through the ranks of the Republican Party to become the Director of the Office of Management and Budget under President Ronald Reagan. After leaving the White House, Stockman had a 20-year career on Wall Street.MORE FROM AUTHOR