Category Archives: economic news

economic news

Now the POTUS wants to manage global economy?

This blog doesn’t deal much at all with global economic policy, mainly because its author — that would be me — isn’t qualified to discuss it. So, I able to resist the urge to get entangled in such complicated matters.

However, it’s always been my understanding that the Federal Reserve Board is independent of the president of the United States. Yes, the president appoints the Fed chairman but traditionally lets the Fed run on its own power. The president stays out of the economic quagmire.

That is until Donald Trump became president. Now he’s getting involved in second-guessing, undercutting, undermining Fed chairman Jerome Powell over interest rate policy. He is blaming Powell — among others — for the precipitous decline in the stock market. He says that Powell, a well-educated economist, doesn’t understand the stock market. Eh? What?

Trump wrote this via Twitter: “The only problem our economy has is the Fed. They don’t have a feel for the Market, they don’t understand necessary Trade Wars or Strong Dollars or even Democrat Shutdowns over Borders. The Fed is like a powerful golfer who can’t score because he has no touch — he can’t putt!”

I am having trouble getting past the idiocy in that tweet in the first place. I am trying to figure out what the hell Trump is trying to say, referencing government shutdowns, trade wars and “strong dollars.” What the . . . ?

What is troubling is that the president is now trying to micromanage something about which he knows not a damn thing! I get that he’s likely to say he knows more about economic policy than any human being who’s ever lived . . . except that he cannot find his rear end with both hands when it comes to any of it!

Donald Trump won’t ever get it. He won’t ever understand that there are issues he should avoid. Every time this clown opens his mouth and utters these feckless clichés, he sends the markets into gyrations.

As someone who fears for the future for my retirement fund, I implore Donald Trump to do something he is incapable of doing.

Keep your trap shut . . . Mr. President!

economic news

Bulls to bears: Why has POTUS gone silent?

Donald Trump has this annoying, perhaps sickening, habit of taking credit when he doesn’t deserve it. He behaves a bit like many of his presidential predecessors in that regard, although they usually have done so with a bit more, um, style and subtlety.

Not Trump. Take the stock market, for example. He bellows, blusters and bloviates when then market hits all-time highs. He suggests quite openly that his policies are the cause of all that wealth.

Now, though, the wheels seem to be coming off that economic hay wagon. The Dow Jones Industrial Average has tanked . . . bigly! The bull market has turned bearish.

Where is the president now? Doesn’t he deserve to take the blame as well as hog all the credit? Are there factors above and beyond one man’s economic policy?

Of course there are! It works in both directions. When the market skyrockets — as it has done — the president doesn’t deserve to take all the credit. When it plummets, he doesn’t deserve to take the heat.

It’s just that with this president, you always can expect bluster when positive opportunities present themselves.

When it goes badly? Crickets, man!

business news, economic news, local news

Now, how about the Herring Hotel?

You’ve heard it said, “If they can put a man on the moon, why can’t they, um, make the trains run on time?”

Amarillo, Texas, might have a “put a man on the moon” metaphor of its own. It could go something like this:

“If they can find a way to rehabilitate and reopen the crappy hulk of a structure known as the Barfield Building, why can’t they do the same thing for the Herring Hotel?”

The Barfield Building — which is a rotting 10-story structure at the moment — is going to be repurposed as a Marriott boutique hotel.

Meanwhile, the Herring Hotel, once the city’s go-to place for every social event of consequence, also is rotting. It’s dark. It is foreboding.

A friend of mine, Bob Goodrich, has owned the building since the 1980s. He bought the abandoned structure with the hope of finding someone to invest big-time money to rehabilitate and revive it. He says he has scored some near misses. He’s been disappointed. He pays the taxes annually on it. The building isn’t quite the eyesore that the Barfield has become.

I’ve been through the first two floors in the Herring. Granted, there’s a lot of work that needs to be done. It is in surprisingly decent condition, however.

Some contacts I used to have who were involved in downtown revitalization have told me they foresee a viable future for the Herring. Many of those folks have moved on. I am not familiar with many among the current crop of brainiacs who are talking among themselves about what to do about the Herring.

Nor am I familiar with all that has taken place to date.

I simply am amazed that a hospitality management company has actually taken control of the Barfield and has actually begun work to bring that miserable hulk of a structure back to life.

I consider the Barfield to be among the worst examples of urban rot in downtown Amarillo. If they can find a new purpose for the Barfield, isn’t there a future to be found for the Herring?

business news, economic news, national news

Self-awareness is MIA

Donald John “Smart Gut” Trump’s jaw-dropping absence of self-awareness is on full display this week.

He has taken aim at the man he selected this past year to lead the Federal Reserve Board. Jerome Powell took the hit for the reeling stock market, giving Trump the headache of watching people’s retirement funds — such as mine — shrink before our eyes as investors sell off their stocks.

Chairman Powell is not giving anything back to Trump, the president complained. Trump said he is quite unhappy with the selection of Powell to lead the Fed.

For starters, the Fed is an independent agency that doesn’t answer to the president of the United States. Trump doesn’t understand that, along with all the other elements of government he doesn’t understand.

Then he said he has “a gut” that tells him more than “anyone else’s brain” can tell him.

Oh, really, Mr. President?

Well, did your gut tell you to invest in all those endeavors for which you filed bankruptcy before you entered political life? How did Trump University or the Trump Taj Mahal resort work out? Not too well.

Trump’s “gut” let him down . . .  again and again and again!

economic news, International news, national news

Globalism isn’t a dirty word

Donald Trump decided this week to rough up a PBS reporter, Yamiche Alcindor, who sought to ask him whether his declaration that he is a “nationalist” was a “dog whistle” to those who are closet “white nationalists.”

He called the question “racist,” an odd accusation given that Alcindor is African-American.

Setting that stuff aside, it’s fair to wonder whether the president’s nationalistic view is code as well for “isolationist.” Yes, I share the view that the nationalism espoused by Trump can be construed as an endorsement of white nationalism, but the isolationist tag is equally dangerous on another level.

Trump wants to “put America first.” His nationalist tendencies, though, ignore the reality of the present day. The world has figurately shrunk, thanks to technology and a 24/7 awareness of everything that happens on the other side of Planet Earth. Thus, we cannot recuse ourselves from the affairs in faraway lands. Nor can they from our affairs.

We build alliances because we seek to stay engaged in world affairs. The president seems intent on pulling us out of the cooperative efforts that his predecessors have forged with trading partners, military allies and geopolitical friends.

Trump imposes trade tariffs because he accuses our partners — namely Canada and Mexico — of being “unfair” in their trading practices. He goes to Europe and scolds NATO allies for failing to pay their fair share of their defense; in the most ironic tongue-lashing of all, he tears into Germany for its deal to import natural gas from Russia, suggesting that the Germans were beholden to the Russians. Shortly after taking office, Trump managed to hang up on Australian Prime Minister Malcolm Turnbull because of a spat he didn’t understand over refugee migration.

This is how putting “America first” makes us stronger? This is how to build American prestige around the world?

No. It isn’t. Our retreat from a global strategy weakens this country as its standing among the world community of nations diminishes.

I don’t want the president to continue on this course. I know he won’t give a damn what I think, or what other critics think about him and his policies. If only he could enlist the wisdom of those closer to him to speak the truth to him about the folly of his nationalism.

economic news, national news

TEA Party? Where have you gone?

Don’t you remember when the 2010 midterm election produced a “shellacking” of the Democrats? It was delivered by what was then called the TEA Party.

Eight years ago, the TEA Party was the dominant insurgent force within the Republican Party. The TEA Party comprised Republicans who were fed up with being taxed too much.

Indeed, in recent years I’ve been using the term “TEA Party” in all capital letters, because it was born of a movement that proclaimed itself to be “Taxed Enough Already,” hence TEA Party is an acronym.

The TEA Party drove then-House Speaker John Boehner — a leader of the “establishment wing” of the Republican Party — to just this side of nuts. Indeed, U.S. Rep. Mac Thornberry, a Clarendon Republican and a friend/ally of Boehner, told me he believed Boehner was going to bail from the House because he was tired of battling the rebels within his GOP caucus.

It turned out Thornberry was right. Boehner quit the speakership and the House in 2015. He’d had enough.

The TEA Party has its share of lawmakers who’ve taken their message forward. Ted Cruz of Texas is one of them.

But since about 2016, we hear less of the TEA Party and more of another insurgent group of Republican lawmakers calling themselves the Freedom Caucus. It, too, is a low-tax outfit committed to cutting government spending on programs that have become part of the national fabric. You know, programs such as Medicare, Medicaid … those kinds of things.

The Freedom Caucus has picked up where the TEA Party (seemingly) left off in opposing the Affordable Care Act. They want to repeal the ACA, but I haven’t heard about whether to simply repair the ACA, make it better, preserve those elements of it that are working.

The Freedom Caucus has become every bit the political gadfly that the TEA Party became to the point of sending a speaker of the House of Representatives packing in the middle of his term.

It’s not that I miss the TEA Party. I don’t. I’m just wondering out loud how these movements come and go and how replacement insurgencies come to the fore.

I happen to favor good government, not necessarily big government. The TEA Party — wherever it is — wants to gut government. As one who appreciates the role government plays to improve people’s lives, I wouldn’t mind one bit if the TEA Party would simply vanish, never to be heard from again.

Same for the Freedom Caucus.

economic news

POTUS pitches tax cut before midterm election? Can’t happen

Donald Trump’s ignorance about the federal government was on full display at a campaign rally.

The president promised a 10 percent tax cut before the midterm election. Cheers erupted from the crowd.

Oh, but wait. Congress initiates tax measures. Congress isn’t meeting. The president cannot enact a tax cut by himself.

Cutting taxes is a complicated matter. It requires negotiation among lawmakers and with the White House.

So it is that Donald Trump has shown us yet again that he doesn’t know what the hell he’s doing. He can say things. He can elicit cheers from adoring crowds.

He cannot deliver anything by himself. None of this matters to his base. This is the “new normal” in Washington: A president doesn’t know what he’s talking about … and neither does the crowd that cheers him on.

economic news

Fed chairman feels POTUS’s wrath

Donald Trump has crumpled up yet another presidential custom and tossed it into the nearest crapper.

There once was a time when presidents didn’t criticize openly the chair of the Federal Reserve Board. Not this guy. Not this president.

Trump says he “maybe” regrets appointing Jerome Powell as Fed chairman. He gripes that “I’ve got a good economy going” and Powell is wrecking it by raising interest rates, causing the stock market to wobble and then crater.

You see, Trump yet again seems upset that his personal reward from serving in the highest office in the land is being diminished because an economic pro is taking measures commensurate with a healthy economy.

As for the president’s criticism of the Fed chairman, it flies directly in the face of a longstanding custom to shield the Fed from political criticism. Trump doesn’t recognize customs that historically lend dignity to the office.

To think, too, that the president is savaging a chairman who he appointed himself.

Weird, man.

economic news, local news, State news

Amarillo no longer ‘ignored’ by state

It’s hard for me to believe that at one time many residents of Amarillo and the rest of the Texas Panhandle felt “ignored” by the powers that be way down yonder in the state capital in Austin.

Every now and then I still hear the occasional gripe that Austin doesn’t give a damn about Amarillo, or the Panhandle, or those who live there. Those who say such things — or think them privately — need to get out more.

I’ve moved away from there but I return on occasion with my wife. I am amazed at what I see transpiring along the city’s major highways.

I see dozens, maybe hundreds, of work crews toiling to renovate Interstates 40 and 27. I see dozens of trucks, front-end loaders, backhoes, road-grading equipment and assorted vehicles of all shapes and sizes  with “Texas Department of Transportation” decals plastered on the doors.

No longer can anyone with a straight face complain about Amarillo being “ignored” by the state.

I don’t know what the dollar figure is on all this work, but it’s got to be in the mid- to high eight figures.

A former state legislator, Republican David Swinford, was known to grumble out loud about the lack of attention Austin was paying to the Panhandle. I arrived in Amarillo in January 1995 to become editorial page editor of the Amarillo Globe-News. I met the Dumas lawmaker shortly after arrival and asked him whether it was true — as I had heard — that he wanted to split the Panhandle off from the rest of the state. Swinford didn’t deny it categorically and said that he was miffed that the state didn’t pay the Panhandle enough attention.

Well, I guess my old buddy David Swinford has seen his wishes come true.

These work crews are tearing up the highways, not to mention along Loop 335 along the southwest corner of the city. Eventually, TxDOT will begin work extending the loop along Helium Road about a mile west of Soncy Road.

I look forward to watching this all take shape from some distance — except when my wife and I return to do battle along the I-40 as we enter from the east.

You’ve heard it said to “be careful what you wish for”? These days, the grumbling I hear in Amarillo speaks mostly to there being too much attention being paid by the state.

economic news

Doesn’t the deficit matter any longer?

News that the federal budget deficit grew by 17 percent in the past fiscal year makes me wonder.

How is it that “real Republicans” continue to lend their support to a man who calls himself a Republican but on whose watch the deficit is allowed to grow at this breakneck pace?

Donald Trump made a lot of campaign promises while winning the presidency. He said the deficit would plummet. It hasn’t.

It grew to about $771 billion in the fiscal year that ended Sept. 30.

Now I get that there are factors contributing to that deficit. The Trump tax cuts, for one. Another has been a boost in defense spending.

But juxtaposed to this deficit lies a curious set of potential issues that could send it into deep space. The wall Trump wants to build along our southern border is going to cost hundreds of billions of dollars. Then there is that infrastructure improvement package that the president said should cost more than $1 trillion. He wants to improve, repair, renovate, rebuild our nation’s highways, bridges and airports.

Where in the name of fiscal responsibility is he going to get that money? Oh, I know! He’ll borrow it, just like President Barack Obama did in 2009 when he inherited a national economy in collapse — and which Trump and other Republicans criticized to the hilt at the time, even as the economy began to revive itself.

Obama and his spendthrift policies did help reduce the rate of growth in the annual deficit dramatically during his two terms in office. In President Bush’s final year, the deficit exceeded $1 trillion; the Obama administration and Congress managed to cut that annual amount by roughly two-thirds.

Now it’s climbing — inexorably, according to many economists — back toward that trillion-dollar figure.

Deficit hawks — and I consider myself a deficit hawk — are alarmed. If not, they should be alarmed.

Yet the question remains about those real Republicans. The president you embrace doesn’t adhere to anything approaching regular Republican fiscal orthodoxy. Why do you keep clinging to this individual’s coattail?