Authored by John Rubino via DollarCollapse.com,
The political and financial worlds were baffled by President Trump’s decision, just hours after being released from the hospital, to suspend coronavirus stimulus bill negotiations “until after the election.”
- With a little hindsight, it’s clear that this was one of his “Art of the Deal” tactics, albeit in compressed form.
- You walk away from stalled talks, get in your car and drive off, leaving the other side stunned and, hopefully, softened up for compromise. Then you restart negotiations with each side a little more flexible, and — in this case the crucial second part of the strategy — the deal broken up into bite-sized, and thus more easily doable, parts.
- The big conflict here is the Democrats’ burning desire to bail out their party’s governors and mayors colliding with Trump’s aversion to rewarding those officials’ horrendous mismanagement (and refusal to vote Republican). Remember, California, Illinois, New Jersey, and their peers were looking at pension crises (i.e., functional bankruptcy) before the pandemic hit.
- The strategy of breaking the stimulus bill up into pieces puts the Dems in a tough spot, having to oppose saving big, crucial industries and giving money directly to voters in order to protect bail-outs for Dem-run states. This is not a good place to be going into the election, but it’s where Trump has put them.