I am sure someone somewhere heard him say it. Most probably didn’t pay attention, but I did, and now I am waiting to see if anyone else noticed.
Donald Trump just admitted something that will probably end up putting him in jail, and probably Larry Kudlow, as well.
At the U.S. China Trade Deal Phase One signing, while the cameras were rolling, Trump was rambling on about how hard it was for his team to get the trade deal done. At one point, Trump uttered the words, “and Ludlow would go on TV and bam, the markets would go up, and I would say, “Hey Larry, what did you say to make the markets go up, that is great.”
First of all, if you go back and look at Larry Kudlow, there are at least three occasion where he pumped false optimism into the trade deal discussions which had the effect of driving up Stock prices, essentially manipulating the market.
This is illegal. What makes even more improper and probably falls under “abuse of power” is when the president admits – and then congratulates – his financial adviser for doing so.
Was it a slip of the tongue? Did Trump forget for a moment he was revealing a little inside information on the fact that even when trade negotiations were not going so well, Kudlow was able to put his spin on things to drive the stock market back up on expectations? How many times did the Market rise and fall on the latest news of trade negotiations going sour, only to be up again on the news – and spin – that a deal was imminent?
Maybe it’s all part of the ‘Art of the deal,’ but it seems shady to me that the American public was being manipulated so as to give Trump leverage against the Chi-cons. Maybe that is business as usual. Maybe that’s why Trump has the deal. Maybe the ends justify the means.
But it wasn’t the way I raised my children.
It is one thing to make a profit on an inside trade because you have proprietary information no one else has, but when you are the one providing the very information that will affect the market, one wonders how often Mr. Kudlow knowingly made false statements to the press with the specific intent of raising market confidence, tipping the negotiations in his (and the U.S.) favor.
This will probably go unnoticed because the much-ado-about-nothing-impeachment trial is about to get underway where Congress wants to nail the president on a phone call.
Go ahead, play the tapes back. It may be worse than the time when Trump said on a airplane that he hadn’t paid off a hooker, even though he had.
I love Trump’s policies. But I also believe presidents should not be manipulating the economy just so they can look good. If built on straw, economies will collapse – and that is good for no one.