Peter Navarro: News Coming Tomorrow on How We Plan to Blow-Up Free Trade

President Trump's chief anti-trade adviser, Peter Navarro, appeared on the FOX News show, Sunday Morning Futures with Maria Bartiromo this morning.  He once again displayed his basic ignorance of a concept that should be understood by anyone who has completed a freshman economics 101 course.

Even Paul Krugman and Greg Mankiw are sound on the concept in their textbooks.

THE BATTLE IS JOINED: Attack Ads Launched Against California Rent Control Proposition

I have already discussed how Proposition 10, that is on the November election ballot in California, could destroy the state (See: The Proposition That is on the Ballot in November That Could Destroy California).

California builders and apartment owners, along with others, have launched new ads attacking the proposition. But will it be enough?

They are really making economic arguments while the pro-Proposition 10 advocates are launching ads lacking logic but strong on emotion--even featuring one ad that, with an incredible stretch, links President Trump to the anti-proposition advocates(see videos below).

Thank You, Federal Reserve: New York City Hotel Room at $75,000 a Night

The Mark Hotel on the Upper East Side of New York City is now offering the most expensive hotel suite in America at $75,000 per night, according to Bloomberg.

Located on the 16th and 17th floors, the 10,000-square-foot interior space, has five bedrooms, four fireplaces, six bathrooms, and two wet bars.

The living room, with 26-foot ceilings, is located in the corner tower of the building and is large enough to be converted into a full-sized grand ballroom. Outside, there’s a 2,500-square-foot rooftop terrace that overlooks Central Park.



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Finally, The Fixer Talks

This is fascinating, educational and generally informative from an insider's perspective on how governments can be challenged.





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Prof. Hans-Hermann Hoppe in His Own Words on How He Nearly Got Fired from UNLV....

...when the politically correct authorities came after him for a very reasonable teaching point he made in one of his classes.



Definition of time preference here.

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IT BEGINS: Gas Prices in Southern California are Climbing Toward $4 a Gallon

Gasoline prices are climbing toward $4 a gallon in Southern California, boosted in large part by a rise in worldwide crude oil prices, notes the Los Angeles Times.

The average pump price for regular gas in the Los Angeles-Long Beach area stood at

My Open Letter to the Scarcityist-in-Chief

Mr. Donald Trump

1600 Pennsylvania Ave., NW
Washington, DC 20500

Mr. Trump:

Speaking at the United Nations today you complained that Americans are harmed by China and other countries making their exports to America more abundant. You complained also that Americans are harmed by OPEC countries making their exports to America less abundant.

FELDSTEIN: Recession and Stock Market Crash Coming; $10 Trillion in Wealth Could Be Wiped Out

By Robert Wenzel

My favorite Keynesian economist, Martin Feldstein, chairman of the Council of Economic Advisers under President Reagan and current professor at Harvard, writes in a Wall Street Journal op-ed:

Ten years after the Great Recession’s onset, another long, deep downturn may soon roil

The Latest on Socialism in Action: 5 Million Fleeing, No Toilet Paper, and 1,000,000% Hyperinflation

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Thank You Global Central Bankers: Gem-Studded $17 Million Shoes Go On Sale in Dubai

The world's most expensive pair of shoes went on sale in a Dubai hotel, with a $17 million price tag.



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The Rise of Capitalism and the Dignity of Labor

Richard Ebeling emails:

Dear Bob, 

I have a new article on the website of the American Institute for Economic Research (AIER) on, “The Rise of Capitalism and the Dignity of Labor.”

Among the criticisms of capitalism is the charge that labor is treated with indignity and disrespect, besides “exploitation.” The opposite is in fact the case. Looking over especially the last 200 years, the quality and standard of living of the “common man” has improved beyond imagination in comparison to life before the 18th century. 

But more than this, free market liberalism undermined the traditional systems of

WARNING Don't Be Fooled, The Trade War Has Hit DEFCON 2

By David Stockman.

Folks, it's not a "skirmish". On the scale of trade warfare we are now at DEFCON 2.

At this very moment, the US is taxing $250 billion of Chinese imports or nearly half the total flow; and China is taxing $110 billion of its imports from the US or 85% of the flow.

And it's soon going full monte. The Donald has repeatedly threatened to tariff the remaining $267 billion of Chinese imports if Beijing retaliates against his $200 billion, but, self-evidently, they already have.

So it's time to start believing that the Donald will do what he says----unhinged or not--- under the trade file. That's because he's discovered the imperial presidency can virtually raise tariffs at will by abusing the rubbery enabling acts passed decades ago by Congresses which never imagined the Red Ponzi nor the Orange Swan which arose there from.

BREAKING Federal Reserve Hikes Key Interest Rate

As expected, the Federal Reserve, at a regularly scheduled monetary policy meeting of the FOMC, has raised by 25 basis points the interest rate it directly controls.

The range for the Federal Funds rate has been increased from 1.75%-2.00% to 2.00%-2.25%.

This is the 8th hike in the current series of hikes.

It should be recalled that at the time of the first hike Austrian-lites were forecasting an immediate stock market and economic collapse and stated that that first rate hike would have to be reversed.

The Fed also signaled it is

CONFIRMED: Gary Cohn Did Steal Trade-Related Document Off Trump's Desk

H.R. McMaster and Gary Cohn

Former national security adviser H.R. McMaster has confirmed that his ex-White House colleague Gary Cohn removed a trade-related document from President Trump's desk in the oval office.

Tyler Cowen Talks to Paul Krugman

Well, this is going to be interesting. A Koch-funded beltarian talking to an establishment lefty.

Tyler Cowen announced on Tuesday:

I sat down today for a conversation with @paulkrugman. Be on the lookout in October for this episode of #CowenConvos.

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How Race and Gender Pandering Corrupt the University

By Walter Williams

I'm thankful that increasing attention is being paid to the dire state of higher education in our country. Heather Mac Donald, a fellow at the Manhattan Institute, has just published "The Diversity Delusion." Its subtitle captures much of the book's content: "How Race and Gender Pandering Corrupt the University and Undermine Our Culture." Part of the gender pandering at our universities is seen in the effort to satisfy the diversity-obsessed National Science Foundation and the National Institutes of Health, each of which gives millions of dollars of grant money to universities. If universities don't make an effort to diversify their science, technology, engineering and math (known as STEM) programs, they risk losing millions in grant money.

A UCLA scientist says, "All across the country the big question now in STEM is: how can we promote more women and minorities by 'changing' (i.e., lowering) the requirements we had previously set for graduate level study?" Mac Donald says, "Mathematical problem-solving is being deemphasized in favor of more qualitative group projects; the pace of undergraduate physics education is being slowed down so that no one gets left behind."

JUST PUBLISHED: Cato's Economic Freedom of the World

The Economic Freedom of the World seeks to measure the consistency of the institutions and policies of various countries with voluntary exchange and the other dimensions of economic freedom.

Cato states:

The United States returned to the top 10 in 2016 after an absence of several years, with an overall rating of 8.03. During the 2009-2016 term of President Obama, the U.S. score initially continued to decline as it had under President Bush. From 2013 to 2016, however, the U.S. increased its rating from 7.74 to its current standing. This is still well below the high-water mark of 8.62 in 2000 at the end of the Clinton presidency.

In the Face of the United States: EU, Russia and China Agree To Special Payments System for Iran

EU foreign policy chief Federica Mogherini and Iranian Foreign Minister Javad Zarif

By Robert Wenzel

Defying the United States, the EU's three biggest governments, Britain, France and Germany, have agreed to a deal along with Russia and China to set up a special payments system to facilitate trade with Iran.

Bernie Sanders Might Learn Something from Venezuela's Minimum Wage Experiment

By Doug French

There are labor shortages all over the country. There are not enough truck drivers, plumbers, food waitresses, construction workers, and so on. The official unemployment rate is below 4 percent. It was just reported private sector wages popped 2.9 percent.

However, Bernie Sanders and other “progressive” candidates are endorsing the idea of a federal living wage. On his website, Bernie starts with,

Is Trump Being a Con Man With His Welfare Wall Proposal?

By Robert Wenzel

As a follow up to my post, Is Trump About to Put Up a Welfare Wall?, Michael Edelstein emails:

Bob,

You wrote: "According to The New York Times, the Trump administration announced

The Economics of Women With Multiple Husbands

The economics just don't seem to work as well anymore, even in the Himalayas.

A friend writes:

The practice of one husband and multiple wives was also very common in other parts of Nepal and India 30-40 years back. 

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Thank You Federal Reserve, Wilt Chamberlain Rookie Card Sells for $60,000

The 1961 Fleer rookie card of Wilt Chamberlain just sold for $80,000 at auction, reports TMZ.

It previously sold for $45,000 in May 2017.

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Alexandria Ocasio-Cortez to Speak With Joseph Stiglitz Before the Columbia University Democrats

The Columbia University Democrats, in partnership with School of International and Public Affairs professor Anya Schiffrin, will host socialist  Alexandria Ocasio-Cortez to discuss

Is Trump About to Put Up a Welfare Wall?

By Robert Wendel

Even the stumbling President Donald Trump can get something right once and awhile.

It appears that he is setting up something close to a welfare wall.

This is What Russia is Really Like

American mainstream media in cahoots with other wings of the Deep State work hard to project the image of Russia as being a dark and oppressive country, just like it was during the period of communist rule. But that is far from the case. It has changed and continues to change dramatically.

Yes, they have Uber!

Here is a view of the Moscow skyline that you will never see shown by mainstream media:

Here is a video of downtown:

The Living Reality of Military-Economic Fascism

By Robert Higgs

"The business of buying weapons that takes place in the Pentagon is a corrupt business — ethically and morally corrupt from top to bottom. The process is dominated by advocacy, with few, if any, checks and balances. Most people in power like this system of doing business and do not want it changed." – Colonel James G. Burton (1993, 232)

In countries such as the United States, whose economies are commonly, though inaccurately, described as "capitalist" or "free-market," war and preparation for war systematically corrupt both

Bernie Sanders Launches Crazed Congressional Attack Against Jeff Bezos With “Stop BEZOS” Act

By Robert Wenzel

Senator Bernie Sanders (I-Vt) has introduced legislation in the Senate which if passed into law would tax giant corporations such as Amazon and Walmart 100% of

Welcome to Silicon Valley: Drone Startup Burns Through $118 Million, Shuts Down

By Robert Wenzel

There are some very smart people in Silicon Valley venture capital but also a lot of clowns. Think the bell curve.

Airware, a San Francisco-based, startup in the drone sector has shut down after blowing through

This is What Happened When Tariffs Were Imposed in 1930

Dr. Benjamin M. Anderson [chief economist at Chase National Bank 1920-39], wrote in Economics and the Public Welfare: A Financial and Economic History of the United States, 1914-1946 :

[T]here came another folly of government intervention in 1930 transcending all the rest in significance. In a world staggering under a load of international debt which could be

Has the Federal Reserve Joined the Deep State in an Attack Against Trump?

Federal Reserve Bank Chairman Jay Powell

By Robert Wenzel

This is simply stunning.  Federal Reserve Bank Chairman Jay Powell has met or called members of Congress 48 times in his first six months in office, according to a report from Bloomberg News. By contrast, his predecessor, Janet Yellen, who is a shrewd networker, had just

The Man Who Killed Galloping Price Inflation in the US is Coming Out With a Book

Paul Volcker is publishing his memoir, Keeping At It: The Quest for Sound Money and Good Government. 

Volcker was Chairman of the Federal Reserve from August 1979 to August 1987.

He single-handedly halted the high levels of price inflation seen in the

Murray Rothbard: Even if we all became New Socialist Men, Socialism would still not work

This is an important point by Murray Rothbard.

Many socialists believe all that is needed is for socialism to thrive is for a "socialist man" to emerge who is willing to work for the greater good, but there is a much bigger problem: the economic calculation problem, that is, central planning is dysfunctional in determining what should be produced even when workers are willing to follow the orders of the central planners.



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Trump Nominates Another Swamp Creature to the Fed

Nellie Liang

President Donald Trump has announced that he intends to nominate Nellie Liang to an open seat on the Federal Reserve Board.

 Liang is total establishment, spending

Warning to 401K Account Holders

By Robert Wenzel

President Trump recently signed an executive order to make it easier for small employers to offer 401(k)s through multiple-employer plans.

But here's the thing.

Why Do So Many Affordable-Housing Advocates Reject the Law of Supply and Demand?

By Roderick M. Hills Jr.

Housing prices are famously out of control in many cities — the average studio apartment in San Francisco goes for nearly $2,500 a month, more than $2,900 in Manhattan. This trend has inspired a movement called “YIMBY,” for “Yes in My Back Yard.”

YIMBYs push for reductions on zoning restrictions to increase the supply of housing, reasoning that

CONFIRMED Trump Wanted to Raise the Top Personal Tax Rate to Over 44%

Here's another serious problem for libertarian Trump fanboys.

Trump's former top economic adviser, Gary Cohn, confirms Bob Woodward reporting that

Why and How We Have Reached Peak Trump

By David Stockman.

The history books will record, ironically, that the Donald peaked in September 2018.

Obviously, that was the 10th anniversary of the Lehman financial meltdown. But the original event and its current commemoration actually book-end why Trump came out of nowhere, sojourned briefly in the Oval Office, and then fell victim to an even greater crisis that will end in

What Socialists Alexandria Ocasio-Cortez and Venezuelan President Nicolás Maduro Really Have in Common

While they both talk about equality and a concern for the common man, they both really love the super good life that is unattainable by the common man.

Alexandria Ocasio-Cortez was recently caught wearing a $3,500 outfit for a photo-op with construction workers.

While his people starve,  Venezuelan President Nicolás Maduro was caught on video feasting on

ESCALATION: China Reacts to New US Tariffs

President Trump and Chinese President  Xi Jinping

Beijing has a quick response to new tariffs (SEE: Trump Slams China With Tariffs on Additional $200 Billion Worth of Goods) imposed by President Trump.

It says it will retaliate against Trump, saying the Trump’s decision to

Burns Slays Nancy MacLean’s 'Democracy in Chains'

Jennifer Burns is biting in her review of Democracy in Chains: The Deep History of the Radical Right’s Stealth Plan for America by Nancy MacLean ---and justifiably so.

Snippets:

Unfortunately, MacLean gives almost no attention to the areas in which Buchanan
did have deep inªuence and in which he is widely known: the academic ¥elds of political
science and political theory.

---

What does interest MacLean is an ostensible connection between Buchanan and

DONE: Trump Slams China With Tariffs on Additional $200 Billion Worth of Goods

As expected, President Donald Trump has ordered a new round of tariffs on Chinese goods. This time on $200 billion worth of goods.With the previous  $50 billion worth of tariffs on Chinese good nearly half of Chinese goods imported into the US will now face tariffs.

"For months, we have urged China to change these unfair practices, and give fair and reciprocal treatment to American companies," Trump said in a statement.

"As President, it is my duty to protect the interests of

Republicans’ Responsibility for Socialism’s Comeback

By Ron Paul

According to a recent Reuters/Ipsos survey, 70 percent of Americans, including about 50 percent of Republicans, support Medicare for all, the latest incarnation of single-payer health care. Republican support for a health plan labeled “Medicare for all” is not surprising considering that Republican

NEVER FORGET: The Government Crowds Out Private Sector Transportation

By Chris Edwards

The existence of government infrastructure deters or “crowds out” private investment. Many airports, bridges, and urban transit systems in the United States used to be private, but during the mid-20th century entrepreneurs were squeezed out by governments.

The provision of federal aid or subsidies to government-owned airports, bridges, and transit facilities was a key factor in pushing out private enterprise. That is one reason why I favor repealing federal

What Would Be a Radical But Sound Approach to Handling Puerto Rico’s Huge Debt?

Justin Raimondo writes:

Trump’s unwillingness to bail out investors in stricken Puerto Rico’s huge debt - like Seth Klarman, the latest antiTrump warrior - evokes the radical libertarian call of theorist Murray Rothbard to repudiate government debt as an illegitimate contract

Raimondo continues:

The sudden addition of oligarch Seth Klarman to the visible ranks of the Resistance  … is linked to his ownership of Puerto Rico’s debt

The Intercept reports:

 FOR YEARS, THE identity of the owner of one of the largest holdings of Puerto Rican debts has been a mystery.

Chief Economist Opening at Trulia

We are looking for our next Chief Economist to lead the economic research team in San Francisco. If you are passionate about telling stories using data-driven insights, explaining sometimes difficult concepts to consumers in an approachable and interesting manner, enjoy public speaking and presenting your research in front of small or large audiences, and are energized by the opportunity to become a public-facing expert, then this is the job for you! 

The Chief Economist will use Trulia’s and outside data to develop housing-market insights and share these insights with the press (broadcast and print), as well as industry professionals, academics and policymakers. The Chief Economist will be the primary spokesperson and will work closely with the rest of the Trulia economic research team in a highly collaborative environment, as well as Trulia’s communication, marketing, and data engineering teams. The ideal candidate will help improve upon the high quality research output of the Trulia Economics Team and help manage and strategize the research production process.

Who you are

Responsibilities:

Socialism Isn’t Even Suited for Dogs

Steve Hanke writes:

In Venezuela, a kilo of dog food costs three weeks' salary for a minimum wage employee. Barely able to feed themselves, Venezuelans are releasing their pets, flooding the streets with abandoned dogs. Socialism isn’t even suited for dogs.

From the Washington Post:

 The last time Sheldon had had a dog treat was in November. By January, the family’s budget was so tight that Lema stopped buying pet shampoo and began limiting Sheldon’s

China Fury: May Cancel Trade Talks

China is considering declining the Trump administration’s offer of trade talks later this month, reports The Wall Street Journal.

This comes on the heels of news that the White House plans to announce within the next few days tariffs on $200 billion in Chinese goods.

And Trump's neanderthal trade war could get even worse.

The Journal reports that some Chinese officials involved in advising the leadership are proposing to step up the trade fight a notch by restricting China’s sales of materials, equipment and other parts key to U.S. manufacturers’ supply chain. Such restrictions could even apply to Apple Inc.’s iPhones, which are assembled in the mainland, officials said, without elaborating.

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How Two Brothers Out Negotiated The NBA For Millions and Millions of Dollars

Forget this being one of the greatest sports negotiations ever. It is one of the greatest negotiations ever in all of business.

Anyone negotiating deals should study this one carefully. The key was the willingness of the brothers

Trump to Slap China in the Face With New Tariffs

By Robert Wenzel

Against the advice of nearly all economists, tariff crazed President Trump is about to announce more tariffs.

He plans to announce new tariffs of about $200 billion on Chinese imports, even as his aides prepare

Yellen Calls for More Money Printing During Next Economic Downturn

By Robert Wenzel

On Friday in Washington D.C., former Federal Reserve Chair Janet Yellen steeped to the lectern at the Fall 2018 conference of the Brookings Papers on Economic Activity to deliver a speech aimed at current Fed monetray policymakers.

The gist of her speech was that she believes the Federal Reserve's monetary policy group, the

The Federal Reserve Bank of San Francisco Names a Social Justice Warrior as Its New President.

Mary C. Daly

The Federal Reserve Bank of San Francisco has announced that is has named Mary C. Daly as the bank’s new president beginning Oct. 1.

 Daly currently serves as the head of research at the SF branch of the Fed system.

The New York Times reports:

 As a senior executive at the San Francisco Fed, she has been a leading voice for addressing what she has described as a “diversity crisis” in the economics profession and
at the Federal Reserve. At the San Francisco Fed, she pushed successfully to balance the

EXPOSED How Government Zoning Laws Are Holding Back America's Cities

I would say this is almost a great video, except it doesn't once point out that it is government that introduced the zoning laws that created such terrible building plans.

I have to think it is the Koch funded beltarian-style thinking of the GMU-affiliated Institute for Humane Studies that causes the glaring omission.

Never upset a member of the government, you see.

Please understand this when viewing the otherwise excellent video:

A Cyclone of Confusion Is About to Strike

By Don Boudreaux

With hurricane Florence now striking the U.S. east coast, the typical late-summer silly season in economics commentary is about to launch. And nothing is more silly than is the barrage of self-righteous condemnations we’ll hear of so-called “price gouging.” The letter below will be personalized and sent to each of the many politicians and pundits who will, predictably, use the occasion of this hurricane to expose his or her economic ignorance.

Socialist Alexandria Ocasio-Cortez Wears $3,500 Outfit For Photo-op With Construction Workers

Yup, socialist  Alexandria Ocasio-Cortez is sure seeking to gain a socialist leadership position where the take is somehow always high and the sacrifices of the people are not for leadership.

Infowars points out that she was pictured wearing a $3,500 outfit for a

REPORT: Mnuchin Attempting to "Resist" Trump on Forcing Iranian Banks Off SWIFT

By Robert Wenzel

Forcing Iranian banks off SWIFT, once again, would be a horrific measure that would make it difficult for Iran to conduct international trade. In a world where global exchange is necessary to sustain a modern day economy, such a move would be nothing short of barbaric. Yet, this measure is

Jack Lew Goes Silicon Valley Crony

Former Treasury Secretary Jack Lew has announced that he will chair the advisory board of consumer-lending tech company Blend. The San Francisco-based start-up handles online mortgage applications for incumbents like Fannie Mae, Freddie Mac, U.S. Bank and Wells Fargo.

The company has attracted $160 million of private funding from Andreessen Horowitz, Greylock Partners, Peter Thiel's Founders Fund and other venture investors, according to Crunchbase.

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Why the Nazis and Fascists Loved FDR

By David Gordon

Critics of Roosevelt's New Deal often liken it to fascism. Roosevelt's numerous defenders dismiss this charge as reactionary propaganda; but as Wolfgang Schivelbusch [in Three New Deals: Reflections on Roosevelt's America, Mussolini's Italy, and Hitler's Germany, 1933-1939].  makes clear, it is perfectly true. Moreover, it was recognized to be true during the 1930s, by the New Deal's supporters as well as its opponents.

When Roosevelt took office in March 1933, he received from Congress an extraordinary delegation

This is Trash in Socialist Venezuela

Watch this truck dumping its trash. This trash is indeed trash: Venezuelan bolivars. pic.twitter.com/PJz01VcQ8s

— Prof. Steve Hanke (@steve_hanke) September 13, 2018

The money is being dumped because the price inflation was so great that the Venezuelan government lopped a bunch of zeroes off the currency and printed new bills.

Of course, if they keep on printing money at the pace they have been, the new money will eventually end up as trash also.

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The Great Cryptocurrency Crash of 2018

By Joseph T. Salerno

It looks like we have an asset bust for the record books in the making.  The cryptocurrency crash now under way today surpassed the dot-com bust that occurred at the beginning of the millennium,.  While the NASDAQ Composite Index suffered a decline of 78% from its peak in March 2000 to its

Jose Nino Warns South Africa: You Are Headed Toward a Venezuelan Style Collapsed Economy

Jose Nino managed to escape Venezuela just before it collapsed due to Socialist expropriations, nationalisation, price controls, and unsustainable welfare programmes. He now lives in America and works as a political activist. This is his message to South Africa. [@JoseAlNino] pic.twitter.com/RlONtSnHbf

— Siphamandla (@Sowellnomics) September 13, 2018

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SAD! Trump Economic Adviser Gary Cohn Trying to Explain Basic Economics to Trump

President Trump and economic adviser Gary Cohn

Still more from Bob Woodward's book,  Fear: Trump in the White House.

When he was Trump's top economic adviser Gary Cohn tried to explain to Trump that America is now a service economy – and that that’s okay.

“Think about it sir,” he says, “when you walk down a street in Manhattan today versus 20 or 30 years

THIS IS HOW BAD THE TARIFF BATTLE GOT INSIDE THE WHITE HOUSE: Trump Economic Adviser Cohn Told the Secret Service to Shoot Him After He Hit the President

From Bob Woodward's book,  Fear: Trump in the White House, we learn that when then top Trump economic adviser Gary Cohn brings Trump good news about job numbers, Trump teases him by saying, “It’s all because of my tariffs, they’re working.”

Trump had yet to impose any tariffs, but knew Cohn hated the idea.

“You’re a fucking asshole,” he tells Trump, half-joking, and hitting him gently on the arm. He turns to a secret service agent and says: “I just hit the president. If you want to shoot me, go ahead.”

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