Source: The Daily Reckonig blog, by David Stockman
Yesterday I said the Donald was absolutely right in canning the insufferable James Comey, but that he has also has stepped on a terminal political land-mine. And he did.
That’s because the entire Russian meddling and collusion narrative is a ridiculous, evidence-free attempt to re-litigate the last election. And now that the powers that be have all the justification they need. And what is already an irrational witch-hunt will be quickly turned into a scorched-earth assault on a sitting president.
I have no idea how this will play out, but as a youthful witness to history back in 1973-1974 I observed Tricky Dick’s demise in daily slow motion. But the most memorable part of the saga was how incredibly invincible Nixon seemed in early 1973.
Nixon started his second term, in fact, with a massive electoral landslide, strong public opinion polls and a completely functioning government and cabinet.
Even more importantly, he was still basking in the afterglow of his smashing 1972 foreign policy successes in negotiating detente and the anti-ballistic missile (ABM) treaty with Brezhnev and then the historic opening to China on his Beijing trip.
So I’ll take the unders from anyone who gives the Donald even the 19 months that Nixon survived.
After all, Trump lost the popular vote, is loathed by official Washington, barely has a functioning cabinet and is a whirling dervish of disorder, indiscipline and unpredictability.
To be sure, the terms of the Donald’s eventual exit from the Imperial City will ultimately by finalized by the 46th President in waiting, Mike Pence. But I’m pretty sure of one thing: Between now and then, there is not a snow ball’s chance in the hot place that Donald’s severance package will include the ballyhooed Trump Tax Cut and Fiscal Stimulus.
Markets slipped today because of carnage in the retail sector (which I’ve been warning readers about). But these fantasies are apparently still “priced-in” to a market that has now become just plain stupid.
What is surely coming down the pike after the Comey firing, however, is just the opposite.
That is, Washington will soon become a three-ring circus of investigations of Russia-gate and the “hidden” reasons for Trump’s action. The Imperial City will get embroiled in bitter partisan warfare and the splintering of the GOP between its populist and establishment wings.
In that context, what passes for “governance” will be reduced to a moveable Fiscal Bloodbath that cycles between debt ceiling showdowns and short-term continuing resolution extensions.
Progress on Obamacare “repeal and replace” or on a 2018 budget resolution that would enable consideration of tax reform will be nearly impossible.
Apparently, that’s not yet dawned on the Wall Street shills who are in the business of justifying a market that never stops rising. I heard a knucklehead from one of the dodgiest of these shops, Bespoke Investments, on Bloomberg yesterday re-spinning the entire history of the last six months.
The soaring post-election stock market supposedly had nothing to do with Trump or his stimulus and “growth agenda.”
Nope, it’s just about the “fundamentals,” according to the fantasy spinners at Bespoke Investments. Mr. Market doesn’t even care about Washington and will get by just fine even with a tax cut delay or even no tax cut at all. Wall Street is just pricing in a rebounding global economy and a return to double digit profits growth.
The “recovery” is nearly 100 months old and exceedingly long-in-the-tooth by historic standards. Meanwhile, the Fed has clearly embarked on a tightening cycle for the worst of all reasons. That is, it knows it has not abolished the business cycle and is desperately raising rates so that it has dry powder to combat the next recession!
Read More Here: Hurricane Bearing Down on the Casino – The Daily Reckoning