July 28, 2017
Just when you thought US politics couldn’t get any darker – what with
the president openly musing about firing the attorney general who is
investigating the president’s campaign – in comes new communications
director Anthony Scaramucci, with a, ahem, unique critique of his new
(Fox News) – Anthony Scaramucci’s shocking, on-the-record tirade has
blown the cover off long-simmering tensions between two of President
Trump’s key men, prompting one White House worker to express safety
concerns and triggering a countdown to the exit of either Scaramucci or
his target, Trump Chief of Staff Reince Priebus.
Scaramucci, the newly minted White House communications director, set
off a firestorm with a rambling rant loaded with expletives and threats
that The New Yorker published. The coarse language directed at Priebus
and White House Chief Strategist Steve Bannon, as well as blanket
threats to fire people, left some inside the White House shaken.
“This is getting out of hand,” a White House staffer told Fox News.
“I am honestly concerned for my safety in the office tomorrow. This type
of behavior is unbelievable. Working in the White House, and something
like that is said … it’s a disgrace.”
Former Republican National Committee boss Priebus was left seemingly
even more isolated in the aftermath. Scaramucci all but accused Priebus
of media leaks, a recurring problem that has vexed the Trump
administration. Other RNC colleagues brought into the administration
have been nudged out of the West Wing, and Scaramucci’s hiring came with
the rider that he reports directly to Trump – not Priebus.
Priebus has not reacted publicly to the broadside from his West Wing
adversary, but it is hard to imagine the two co-existing in the
administration after the public eruption of animosity. Scaramucci said
after his tirade but before it was made public that any chance their
relationship could be repaired was in the hands of the president.
“Reince is a (expletive) paranoid schizophrenic, a paranoiac,” he told the New Yorker about the White House chief of staff.
Scaramucci also took a shot at Bannon.
“I’m not Steve Bannon, I’m not trying to suck my own (expletive),”
Scaramucci said. “I’m not trying to build my own brand off the
(expletive) strength of the president. I’m here to serve the country.”
At some point, these guys will find themselves sitting around the
same conference table. If video of that meeting ever leaks it will break
But why bother with tawdry political theater on a finance blog?
Because you’d think the markets would be petrified by the prospect of a
government paralyzed by this kind of infighting. Instead, stocks are at
record levels and bonds are holding up nicely. What gives?
The Fed, that’s what. Under today’s New Age monetary regime, bad news
anywhere is good news for financial asset prices because the world’s
central banks, led by the Fed but abetted by the European Central Bank
and Bank of Japan, stand ready to throw trillions of new dollars, euros
and yen at whatever threatens to go wrong out there. And they’ll do it
sooner rather than later. As ECB chair Mario Draghi put it recently
“reactive” mode and won’t hesitate to hit “send” with cash infusions whenever the markets event hint at a downturn.
So by the dip and relax.
This is of course a recipe for disaster. But if you’re managing money
and are being judged by quarterly results you don’t have the luxury of
thinking long-term. The rest of us, though, should definitely be
planning for the day the music ends and the big banks, index funds and
hedgies try to leave the dance floor en masse.
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Source: Sprott Money