Interesting story by Axios about the war between Peter Navarro’s economic nationalist camp and Gary Cohn’s free trader-cohort inside the Oval Office which culminated in Cohn leaving the White House tonight.
The money quote that says it all:
Cohn tried to argue that these tariffs would ruin Trump’s record-setting stock market streak and wipe away benefits of tax reform. But Trump kept saying Cohn was a “globalist” while he himself was an economic nationalist. – Axios
We believe it is going to be difficult to be an economic nationalist when global investors and central banks: 1) hold 1/3rd of U.S. marketable public debt; 2) finance the bulk of the federal budget deficit, and 3) allow the U.S. to run current account deficits ad infinitum without tears — i.e., without a currency crisis.
We fear that may be about to change.