Trump Believes a Corporate Stock Market Rally Reduces Government National Debt

President Trump falsely claimed Wednesday that, “in one sense,” the stock market rally since his election reduces the $20 trillion national debt.

Let’s break down his astonishing claim.

“The country — we took it over, it owed $20 trillion,” Trump Sean Hannity of Fox News in Pennsylvania.

So far, so good. It’s correct that the U.S. owed nearly $20 trillion when Trump took office.

“As you know, the last eight years, they borrowed more than it did in the whole history of our country. So, they borrowed more than $10 trillion dollars, right?”

Also, more or less accurate — $9 trillion to be exact.

“And yet, we picked up $5.2 trillion just in the stock market. Possibly picked up the whole thing in terms of the first nine months in terms of value. So, you can say in one sense we’re really increasing values; and maybe in a sense we’re reducing debt.”

Huh? To say this is a head-scratcher is an understatement.

Trump is right that the stock market has added trillions in value since his election.

But higher stock prices reflect corporate profits. Shareholders and investors reap the rewards. When investors get richer, it does not reduce the amount of money Congress and the federal government has already spent and owes.

The national debt, which he correctly states is $20 trillion, is the result of the government spending more than it takes in. To cut the debt, Congress has to spend less or raise taxes. That would free up cash to pay down what the U.S. owes.

“The stock market’s gains have virtually nothing to do with the size of the national debt, which continues to rise because government spending far exceeds government receipts,” political economist Greg Valliere told CNNMoney.

“A higher stock market encourages consumers and companies to spend more, which helps the overall economy,” said Valliere of Horizon Investments. “But it’s absurd to contend that the national debt has fallen because of this.”

In fact, the president wants to cut taxes and potentially add to the debt if spending cuts cannot be found to offset those tax cuts.

The White House, in a statement, said Trump “was simply making the point that we’ve seen enormous growth in the stock market since his election, that means more money in the pocket of everyday citizens, and more circulating in our economy as a whole.”

As for that stock market rally, the Standard and Poor’s 500 is up nearly 20% since his election — an impressive rally. No question investors cheer this president’s pro-business, anti-regulation, lower taxes agenda. But under the Obama Administration that same index rose 235%. And no, that stock market rally did not reduce or offset the national debt either.

[CNN]

Media

Watch on CNN

Trump threatens NBC, then says it’s ‘disgusting’ press can ‘write whatever it wants’

President Trump told reporters in the Oval Office on Wednesday afternoon that he found it “frankly disgusting the press is able to write whatever it wants to write.”

Asked later whether he believed there “should be limits on what the press should write” — which would likely conflict with the First Amendment, which guarantees both free expression and a free press — Trump said, “No. The press should speak more honestly.”

Still, his comment raised eyebrows, especially because it was the latest remark in a string of heightened attacks Trump has leveled against the press in recent days.

Just Wednesday morning, Trump had tweeted that media companies which report critically on him should be punished by having their television station licenses revoked.

In a tweet, the president decried the supposed “fake news coming out of NBC and the Networks.” He asked, “At what point is it appropriate to challenge their License? Bad for country!”

Trump seems to have been furious over an NBC News report that said he wanted a tenfold increase in the U.S.’ nuclear arsenal. Earlier in the morning he claimed the story was “pure fiction” and “made up to demean.”

Trump’s veiled threat may contribute to the increasingly chilly atmosphere journalists in the U.S. are working under during his administration. But his threat is essentially toothless.

First of all, there is no single license for NBC or any other national television network. Licenses are granted to individual local stations — and NBC doesn’t even own most of the stations that broadcast its content across the country. And it is extremely unusual for any station’s license to be taken away for any reason, much less for a political vendetta.

The licenses for local television stations are subject to review by the Federal Communications Commission every eight years.

It would not be possible for Trump or his allies to challenge all of the licenses held by NBC in one fell swoop. Individuals who reside in the areas the local channel airs would have to submit complaints to the FCC.

There is precedent for political allies of a president challenging local licenses. It happened under Richard Nixon in the 1970s, when a friend of Nixon’s tried to take over a license held by the Washington Post. Nixon’s ally did not succeed in his bid.

Short of gross misconduct on the part of a challenged station, it’s unlikely any other such attempt now would be successful either.

“Whatever other legal problems [NBC parent] Comcast may have, this is not one of them,” Andrew Jay Schwartzman, an attorney who works at the Georgetown University Law Center and specializes in telecommunications law, told CNN. “Comcast knows full well that the FCC will never, ever, deny its license renewal applications.”

The FCC is technically an independent body, not subject to the president’s orders. FCC Chairman Ajit Pai — who is a Republican appointed to his current post by Trump — said in March that his job is not to be a “political actor.”

“It is simply to be somebody at the FCC who, as I said, is administering the laws of the United States,” Pai said. “I’m simply not going to wade into that kind of political debate.”

Neither Pai nor an FCC spokesperson immediately responded to requests for comment about Trump’s tweet. But former FCC officials were quick to skewer the president.

“To me it’s just incomprehensible that because of the content of NBC News that somehow their license would be at risk,” Alfred Sykes, a Republican who served as chairman of the FCC under George H.W. Bush, told The Wrap.

“This madcap threat, if pursued, would be blatant and unacceptable intervention in the decisions of an independent agency,” echoed Michael Copps, a Democrat who served as FCC commissioner under both George W. Bush and Barack Obama, in a statement to HuffPost. “The law does not countenance such interference. President Trump might be happier as emperor, but I think the American people would strip him of his clothes on this issued.

A spokesperson for NBC declined to comment.

Trump has increased his attacks on the media in the past week. Last week, he urged the Senate Intelligence Committee to investigate news outlets for publishing supposed “fake” stories. Over the weekend, he hinted it was perhaps time for a law that would require broadcasters to give equal time to both sides of the political debate when discussing public policy.

“At what point are we going to silence media critical of the President?” tweeted Rep. Adam Schiff, the ranking Democrat on the House Intelligence Committee. “When we cease to have a First Amendment and a democratic government.”

[CNN]

Media

A college professor criticized Trump. Now the White House wants an investigation

White House press secretary Sarah Huckabee Sanders wants the University of Las Vegas to investigate one of its professors after she strongly criticized President Donald Trump and the consequences of his election as the city reeled from the mass shooting.

Recordings of assistant professor Tessa Winkelmann showed her speaking to her class about the president’s violent rhetoric and the power of his words.

“Right when he got elected, I told my classes, three semesters ago, that some of us won’t be affected by this presidency, but others are going to die,” Winkelmann said in the video, obtained by the Las Vegas Review-Journal. “Other people will die because of this.”

One student was “dumbfounded” and said the professor’s comments were “appalling,” in the wake of the recent mass shooting in Las Vegas, the Review-Journal reported.

“He’s [Trump] threatened to declare violence against North Korea and other places,” the professor added. “And words, especially if they’re coming from someone who is the president, have consequences. . . I don’t know that these events would have inevitably happened whether or not he got elected, but he has rhetorical powers every president has to encourage or to discourage (violence). So far all he’s done is to encourage violence.”

The White House condemned the comments and said the school should “look into” the professor’s actions.

“It is sad she is teaching students such divisive, inaccurate and irresponsible rhetoric,” Sanders said. “She should be ashamed of herself, and the university should look into it. What a terrible example to set for students.”

Winkelmann apologized in an emailed statement to the Review-Journal and said she wished she had been “more thoughtful in how I directed the conversation.”

“This week has been very difficult for members of our community, and we have allowed students space in our classes to discuss how they have been affected and to openly convey their feelings,” she wrote. “I regret that my comments caused more pain during this difficult time. Emotions were running high and I wish I would have been more thoughtful in how I directed the conversation.”

UNLV issued a statement that said Winkelmann’s comments were insensitive, but did not announce any potential disciplinary action against her.

“While we respect academic freedom in the classroom and the right to free speech, we believe the comments were insensitive, especially given the series of events this week and the healing process that has begun in the community,” university spokesman Tony Allen said, according to the Review-Journal.

Unfortunately this is not the first time the White House has commented on civilians who are outspoken in their criticism of the president. On Tuesday morning the president once again attacked the recently suspended ESPN anchor Jemele Hill as part of his long-running crusade against NFL players who have knelt during the national anthem in protest of social and racial injustice.

Press secretary Sanders also previously said Hill had committed a “fireable offense” when the anchor called the president a white supremacist on Twitter.

Conservatives have long advocated for free speech on college campuses, yet have remained quiet when the White House suggested disciplinary action be taken against a professor who was well within her free speech rights.

[Salon]

Kellyanne Conway denies ever saying ‘fake news’ as Trump attacks NBC

Kellyanne Conway claims she doesn’t use the term “fake news,” saying her beef with the media is “incomplete coverage.”

“I’m a person in the West Wing who’s never actually uttered the words ‘fake news,’ ‘enemy of the people,’ ‘opposition party,’” Conway, a White House senior adviser, said Wednesday during a discussion at Fortune magazine’s Most Powerful Women summit in Washington.

“I don’t speak that way,” Conway said, responding to a question from Fortune’s Pattie Sellers about whether the president’s tweeting has added to “division and rancor” across the country.

Trump, who has used “fake news” to describe media outlets including The New York Times, The Washington Post and CNN, has recently turned his ire on NBC News following its reports that Secretary of State Rex Tillerson once referred to him as a “moron.”

After NBC published a follow-up story on Wednesday claiming the insult came when Trump told officials he wanted to increase the military’s nuclear arsenal tenfold, the president lashed out on Twitter, going so far as to suggest challenging NBC’s license to broadcast.

“I think we need a full and free press in our nation, of course,” Conway said.

“But with that freedom comes responsibility,” she said. “So my grievance is never about fake news. I talk about incomplete coverage.”

“What I’m concerned about is that this president — and I hear this from people who did not vote for him and from people who don’t always cover him fully and fairly either — so there is a concern they’ve literally never seen a president covered this way,” Conway said.

When pressed on whether she’s ever used the term “fake news” — a phrase made famous by Trump on the campaign trail to rail against media coverage — Conway repeated, “I don’t speak that way.”

Conway has, however, classify at least a few stories as “fake news,” telling CNN “The biggest piece of fake news in this election was that Donald Trump couldn’t win.“

And writing on Twitter last year and in March:

[The Hill]

Trump threatens to revoke NBC’s broadcasting license for reporting he wants tenfold increase in nukes

President Donald Trump angrily lashed out at NBC News over its report that he wanted to dramatically increase the United States’ nuclear arsenal by threatening to go after the network’s broadcasting license.

“With all of the Fake News coming out of NBC and the Networks, at what point is it appropriate to challenge their License?” Trump wrote on Twitter Wednesday morning. “Bad for country!”

The president also said that NBC “made up a story that I wanted a ‘tenfold” increase in our U.S. nuclear arsenal,” which he described as “pure fiction, made up to demean.”

According to the original NBC report, Trump “said he wanted what amounted to a nearly tenfold increase in the U.S. nuclear arsenal during a gathering this past summer of the nation’s highest ranking national security leaders.” The president was reportedly incensed by a chart showing that the U.S. has actually been reducing its nuclear arsenal since the late 1960s.

According to NBC’s sources, Secretary of State Rex Tillerson called Trump a “moron” after this particular meeting. Additionally, the sources claim both Tillerson and the joint chiefs of staff pushed back against Trump, and told him why it would be unwise to start a massive nuclear arms race.

[Raw Story]

Reality

The president’s and the government’s power in this area could be limited anyway. According to the FCC’s own guidelines, the commission only licenses individual broadcast stations, not entire “TV or radio networks (such as CBS, NBC, ABC or Fox).”

Trump reportedly wanted nearly 10 times more nuclear weapons

President Donald Trump wanted to increase the U.S. nuclear arsenal by nearly 10 times, NBC News reported Wednesday.

The president brought up his desire for a buildup during a meeting with top national security advisors in July, according to the report, which cited three officials at the gathering. Advisors told Trump about treaties that would be endangered and other hurdles preventing such a move. There is no planned expansion of nuclear weapons, NBC reported.

After the meeting ended, Secretary of State Rex Tillerson was heard calling Trump a “moron.” That comment reportedly sparked more tensions between Tillerson and Trump following an NBC News report last week. Tillerson denied the piece of the report that said he was close to resigning this summer, but did not refute calling the president a “moron.”

The report on the July meeting comes as the U.S. pushes for the denuclearization of North Korea.

Trump has made public statements before about boosting the U.S. nuclear arsenal. In December, he tweeted that the “United States must greatly strengthen and expand its nuclear capability until such time as the world comes to its senses regarding nukes.”

The White House and Pentagon could not immediately be reached for comment.

In a Wednesday morning tweet, the president claimed “fake” NBC “made up” the story. He called it “pure fiction, made up to demean.”

In a second tweet, he suggested that the NBC coverage is “bad” for the country. He asked: “At what point is it appropriate to challenge their License?”

Trump is apparently referencing the licenses granted to individual television stations by the Federal Communications Commission. The FCC does not license news originations or television networks.
NBC Universal, through its television stations division, owns 28 NBC and Telemundo local television stations.

The licensing of television stations dates back to the early days of radio, when the government set regulations based on the idea that the spectrum belonged to the public. Radio and television stations are required to renew their licenses periodically, and those licenses can be revoked if the station’s owner violates FCC regulations or other laws.

But as recently as December, the commission made clear that individual broadcasters have “broad discretion” in what they choose to air.

“The Commission will not take adverse action on a license renewal application based upon the subjective determination of a listener or group of listeners that the station has broadcast purportedly inappropriate programming,” the FCC commissioners wrote in a recent decision challenging a local radio station license.

[CNBC]

Trump Interior Secretary Defends Confederate Statues

Interior Secretary Ryan Zinke says that the Trump Administration will not remove Confederate monuments from federal lands out of consideration for the feelings of “native Indians.”

“Where do you start and where do you stop?” Zinke asked a Breitbart reporter in an interview published Sunday. “It’s a slippery slope. If you’re a native Indian, I can tell you, you’re not very happy about the history of General Sherman or perhaps President Grant.”

This is a mildly innovative take on the “where do you draw the line?” argument that various members of the Trump administration — and countless conservative commentators — have been rehearsing, ad nauseam, since a bunch of neo-Nazis in Charlottesville successfully revived the defense of Confederate monuments as a national political issue. But Zinke’s iteration of the question isn’t any harder to answer than its predecessors.

It simply isn’t very difficult to find a limiting principle that would allow one to take down statues of Confederate generals, while preserving most other monuments to key figures in American history. Here are two:

1) Is the individual in question historically noteworthy primarily for their service to an evil cause? In other words, was their contribution to said cause their principal legacy?

2) Was the monument in question erected with the explicit intention of celebrating that evil cause?

William Sherman was a racist who participated in what we would now call ethnic cleansing operations against Native American tribes. But this is not what he is primarily remembered for, nor is it his principal contribution to our nation’s history. Rather, Sherman is best known for helping to preserve the union — and thus, end American slavery — by bringing total war to the American South. That Ulysses S. Grant is not primarily remembered for his (terrible) treatment of the Plains Indians would seem to go without saying.

By contrast, Robert E. Lee’s principal historical legacy was taking up arms against the United States in defense of the Southern elite’s right to enslave — which is to say, rape, beat, breed, and kill — human beings with dark skin, at will.

To see the absurdity of Zinke’s rhetorical question, imagine a German official saying that it would be misguided to take down a statue of Adolf Hitler, because then the Chinese might start complaining about statues to Kaiser Wilhelm, who instructed German troops to “mercilessly” put down the Boxer Rebellion.

Now, this is not to say that one shouldn’t judge historical figures by their treatment of Native Americans. But the fact that Grant and Sherman made other significant contributions to our history means that when American communities memorialize them with statues, they do not, typically, do so as a means of celebrating the mistreatment of indigenous peoples.

And here lies the most important distinction between statues of Confederate generals and those of Union ones: The latter were not typically built during the Jim Crow era, to celebrate the restoration of White Supremacy after the end of Reconstruction; the former, typically were.

In his Breitbart interview, Zinke said, “When you try to erase history, what happens is you also erase how it happened and why it happened and the ability to learn from it.”

But when Zinke suggests there is no distinction between monuments to Union and Confederate generals, he erases how the latter were erected — and why.

[New York Magazine]

Trump suggests NHL owner could help him with NAFTA negotiations

President Trump suggested on Tuesday that Ron Burkle, a co-owner of the Pittsburgh Penguins NHL team, could help his administration renegotiate the North American Free Trade Agreement (NAFTA) with Canada and Mexico.

Trump during a White House visit by the Stanley Cup championship team praised Burkle’s negotiating abilities, and suggested that the billionaire investor could play a role in NAFTA discussions.

“Ron, how about negotiating some of our horrible trade deals that they’ve made?” Trump asked. “Here’s what I want, I want to get him. Oh, I would love to have Ron Burkle.

“And it’s great to have you Ron. But I really mean that, if you want to get involved in negotiating NAFTA, I like it. Because we’re renegotiating NAFTA, Ron.”

“Of course, he may not like that, because maybe he’s on the other side,” Trump added. “You’re not on the other side of NAFTA, Ron, are you?”

Burkle could be heard responding: “I am not.”

Trump has railed against international trade deals, like NAFTA, as “unfair” to the U.S. and has vowed to renegotiate them.

Canadian Prime Minister Justin Trudeau is set to visit Washington on Wednesday — a trip that will overlap with the fourth round of NAFTA negotiations.

Trump has signaled more recently that he’s leaning toward scrapping the trade deal altogether, telling Forbes in an interview published Tuesday that “NAFTA will have to be terminated if we’re going to make it good.”

[The Hill]

 

Trump offers to ‘compare IQ tests’ with Tillerson after ‘moron’ report

President Trump in a new interview offered to compare IQ tests with Rex Tillerson after reports that the secretary of State had called him a “moron.”

“I think it’s fake news, but if he did that, I guess we’ll have to compare IQ tests,” Trump told Forbes in an interview published Tuesday.

“And I can tell you who is going to win.”

Tillerson called Trump a “moron” and considered leaving the administration, according to an NBC News report earlier this month.

In a press conference last week, Tillerson denied he ever considered leaving the administration.

He did not directly deny that he called Trump a “moron,” but the State Department later said the report wasn’t true.

Trump tweeted last week that his secretary of State never threatened to resign, referred to the report as “fake news” and called for NBC News to apologize.

The relationship between Trump and Tillerson has reportedly grown more tense in recent months.

Trump said Saturday he sometimes wishes Tillerson would “be a little tougher.”

[The Hill]

Reality

The State Department released a statement saying Rex Tillerson’s IQ was “high.” This is where we are at now.

Trump: NYT ‘set Liddle’ Bob Corker up by recording his conversation’

President Donald Trump wrote online Tuesday that “Liddle'” Sen. Bob Corker had been unwittingly recorded by The New York Times, the newspaper to which the prominent Republican lawmaker offered a scathing criticism of the president.

“The Failing @nytimes set Liddle’ Bob Corker up by recording his conversation. Was made to sound a fool, and that’s what I am dealing with!” Trump tweeted Tuesday, pinning a diminutive nickname to the chairman of the Senate Foreign Relations Committee.

In an interview published Sunday by the Times, Corker (R-Tenn.) said Trump is treating the presidency “like he’s doing ‘The Apprentice’ or something” and expressed concern that the president could put the nation “on the path to World War III.” Corker, once under consideration to be Trump’s secretary of state, told the Times that the president “concerns me” and “would have to concern anyone who cares about our nation.”

Despite the president’s assertion that Corker was unaware he was being recorded, excerpts from the interview’s transcript indicate that the senator knew the conversation was on the record. Jonathan Martin, the Times reporter who interviewed Corker, wrote online that two of the senator’s aides had sat in on the phone call and “made sure after it ended that I was taping, too.”

Earlier Sunday, Trump and Corker launched criticisms at each other via Twitter, with Trump firing the first salvo, writing that “Corker ‘begged’ me to endorse him for re-election in Tennessee. I said ‘NO’ and he dropped out (said he could not win without my endorsement).” In another post, Trump added that the Tennessee senator “also wanted to be Secretary of State, I said ‘NO THANKS.’ He is also largely responsible for the horrendous Iran Deal!”

Corker quickly responded with his own online post, writing that “it’s a shame the White House has become an adult day care center. Someone obviously missed their shift this morning.”

The feud between the two men seemed to grow slowly in recent weeks as Corker, who has announced he will not seek reelection in 2018, grew increasingly public with his criticisms of the president. In a particularly sharp barb last week, Corker praised Secretary of State Rex Tillerson, Defense Secretary James Mattis and White House chief of staff John Kelly as “those people that help separate our country from chaos.”

[Politico]

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