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The Independent UK
The Independent UK
Politics
Joe Sommerlad, Lily Puckett

Trump lashes out after economic gloom deepens, as he jokes about trading Puerto Rico for Greenland

Donald Trump had a much quieter day after yesterday's marathon spew. He started the morning off by renewing his criticism of the Federal Reserve, accusing it of “moving like quicksand” compared to Germany’s central bank, despite insisting the US economy is “strong”, refuting analysts' fears a recession is imminent and backing away from tax cuts. After that, he appeared to take the day off from social media, possibly at the hands of concerned aides, or maybe just after tiring himself out.

The morning's attack follows the president’s address to the American Veterans 75th National Convention in Kentucky on Wednesday evening, where he joked about awarding himself the Medal of Honor and trailed the idea of dumping thousands of captured Isis fighters on Europe.

That speech followed a particularly wild day for Mr Trump in which he retweeted praise from an evangelical broadcaster likening the affection in which he is held by Israeli Jews to “the second coming of God”, referred to himself as “the chosen one” in discussion with reporters and labelled the prime minister of Denmark “nasty” over her refusal to consider selling Greenland to him.

In 2020 news, the Democrats will not be granted a widely-anticipated climate change forum, after a top Joe Biden adviser came out against in at a DNC meeting. In a time with climate change is undeniably one of the country, and planet's, greatest threats, it's a confusing turn from the party in the US that actually acknowledges the existence of the existential threat.

Sarah Huckabee Sanders will take a new job at Fox News. The position has surprised practically no one.

Finally, four more representatives now support beginning impeachment proceedings, bringing the number to 135. 

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Hello and welcome to The Independent's rolling coverage of the Donald Trump administration.
Donald Trump joked about awarding himself the Medal of Honor and trailed the idea of dumping thousands of captured Isis fighters on Europe in an address to the American Veterans 75th National Convention in Louisville, Kentucky, on Wednesday evening.
 
Overlooking the fact that he himself has never served in the US military after receiving five draft deferrals for bone spurs ("You think I'm stupid? I wasn't going to Vietnam"), Trump's speech at the Galt House Hotel also saw him mock the very idea of blurring the line between official White House duties and campaign rallies - which he was flagrantly engaging in - and promoting a ketamine-related wonder drug made by Johnson & Johnson as the answer to veteran suicide.
 
Repeatedly stumbling over his words, the president cut an extraordinary figure before finally signing a memorandum wiping out student debt for disabled ex-servicemen and bowing out for the night.
 
But that was nothing.
 
The speech followed a particularly wild day for the president in which he retweeted praise from an evangelical broadcaster likening the affection in which he is held by Israeli Jews to “the second coming of God”, referred to himself as “the chosen one” in discussion with reporters on the White House lawn and labelled the prime minister of Denmark “nasty” over her refusal to consider selling Greenland to him.

Displaying signs of creeping authoritarianism and a burgeoning Messiah complex, Trump also spoke of how much the injured citizens of El Paso “loved him” when he visited them in hospital, speculated on serving more than two terms and raised the prospect of amending the constitution by executive order to end birthright citizenship.
 
Here's Phil Thomas keeping score on a day of wild pronouncements.
 
Let's zero in on that impromtu press conference in the sunshine yesterday afternoon.
 
Here is claiming to be "the chosen one", looking to the heavens for approval of his trade war with China that is hammering export-dependent Midwestern farmers...
 
...and here he is going after Danish PM Mette Frederiksen over Greenland, clearly angered by her suggestion his proposition was "absurd".
 
On the economy, he insisted that everything is fine and that talk of a coming recession is an invention of the "fake news media" - an argument he had already made on Twitter while simultaneously subjecting Federal Reserve chairman Jerome Powell to relentless abuse.  
 
On gun control, he was forced to defend his evident loss of appetite for reform in the face of opposition from the National Rifle Association (NRA).
 
He trailed his Isis line before seeking the approval of veterans on it later that evening....
 
...and repeated his outrageous attack on American Jews, making light of the round of condemnation he attracted for such blatant antisemitism. 

Perhaps the most troubling pronouncement of all was this on birthright citizenship...
 
... on which Clark Mindock has more.
 
Secretary of state Mike Pompeo has been busy attempting to repair relations with Copenhagen after Trump abruptly cancelled his visit scheduled for 2-3 September, angered by Frederiksen's mockery over his bid to buy Greenland.
 
“She’s talking to the United States of America. You don’t talk to the United States that way, at least under me,” he frothed to reporters.
 
Foreign minister Jeppe Kofod has since tweeted this about his call with Pompeo:
 
Frederiksen herself had this response to the president.
 
Here's Jon Sharman's report on a ludicrous episode for diplomatic relations.
 
If that wasn't enough hot madness for you, Trump has also been on Twitter to invoke the memory of American automotive pioneer and industrialist Henry Ford in anger at US car manufacturers Ford and GM signing an agreement with California to lower emission standards
 
Following Trump's appalling remark that Jews who vote Democrat show "a total lack of knowledge or great disloyalty", the decision to reference Ford, a famous antisemite admired by Adolf Hitler, has not gone down well.
A day after considering cutting taxes to promote economic growth, Trump yesterday made a complete U-turn on the subject saying he would abandon the idea because the nation already had "a strong economy." 
 
Trump's flip-flop came after recent market volatility and economic uncertainty and amid a debate about whether the United States was heading for a slowdown that would imperil his re-election chances.
 
Trump earlier this week acknowledged, for the first time, that his China trade policies may mean economic pain for Americans, though he insisted the tariffs are needed for more important long-term benefits. 

But his consideration of cutting payroll taxes appeared short-lived. 

"I'm not looking at a tax cut now," he told reporters at the White House. "We don't need it. We have a strong economy." 
 
Trump also knocked down the idea of indexing to the capital gains tax, which applies when investors sell assets, to inflation. He said he feared "it will be perceived, if I do it, as somewhat elitist." 

Analysts have warned that a slowdown, if not full-blown recession, could hit before next year's election. Trump, however, has largely praised the economy's performance and his handling of it. He has often blamed the Federal Reserve (and chairman Jerome Powell, his own appointee) and the global slowdown for creating dark clouds at home. 

"Jay Powell and the Federal Reserve have totally missed the call. I was right and just about everybody admits that," Trump said on Wednesday. "He raised interest rates too fast, too furious, and we have a normalised rate. And now we have to go the other direction."
 
Some White House advisers fear Trump has undercut Powell's credibility. They worry that the president's calls for rate cuts and his discussion of indexing or a payroll tax cut could spook, rather than reassure markets. 

Trump indicated he had no choice but to impose the trade penalties that have been a drag on US manufacturers, financial markets and, by some measures, American consumers. 

"Somebody had to do it," Trump said on the White House lawn. "Somebody had to do it. So, I'm taking on China. I'm taking on China on trade."

China, though, said trade with the US has been "mutually beneficial" and appealed to Washington to "get along with us." A foreign ministry spokesman, Geng Shuang, expressed hope Washington can "meet China halfway" in settling disagreements. 

The US economy appears to be showing vulnerabilities after more than 10 years of growth. Factory output has fallen and consumer confidence has waned as he has ramped up his trade fight with China. 

Trump rattled the stock and bond markets this month when he announced plans to put a 10 per cent tax on $300bn (£247bn) worth of Chinese imports. The market reaction suggested a recession might be on the horizon and led Trump to delay some of the tariffs that were scheduled to begin in September, though 25 per cent tariffs are already in place for $250m (£206m) in other Chinese goods. 

The president has long maintained that the burden of the tariffs is falling solely on China, yet that message was undermined by his statements to reporters Tuesday. "My life would be a lot easier if I didn't take China on," Trump said. "But I like doing it because I have to do it." 

The world economy has been slowing in recent months, and recent stock market swings have added to concerns that the US economy is not immune. A survey on Monday showed a big majority of economics expect a downtown to hit by 2021. 

Addressing that possibility, Trump focused anew on pressuring the Fed to cut interest rates. Presidents have generally avoided criticising the central bank publicly. Trump, however, has shown no inclination to follow that lead, positioning Powell to take the fall if the economy swoons. 

"I think that we actually are set for a tremendous surge of growth, if the Fed would do its job," Trump said. "That's a big if." Trump recommended a minimum cut of a full percentage point in the coming months. 
 
Here's Clark Mindock on why the economy is quite so personally integral to Trump's re-election bid.
 
Trump is reportedly considering issuing an executive order that would allow states and local jurisdictions to deny entry to refugees, approved for resettlement, according to NBC.
 
"The federal government will resettle refugees only where both the relevant state and local governments have consented to participate" in the programme that allows refugees to resettle, a first draft of the order seen by reporter Julia Ainsley states.
 
The plans are currently under review by lawyers and at various government agencies, according to one unnamed senior Department of Homeland Security official.
A couple of comings and goings from the 2020 presidential race for you.
 
So farewell then, Washington state governor Jay Inslee. We hardly knew ye.
 
Inslee, who nobly fought to bring climate change to the front of the Democratic debate agenda, joins Eric Swalwell and John Hickenlooper in dropping out, with others expected to follow suit as the competiton gets ever tougher and the field narrows.
 
Speaking on MSNBC's Rachel Maddow Show, Inslee said “it has become clear I’m not going to be carrying the ball. I’m not going to become president.”
 
Kamala Harris was particularly gracious in response.
 
Meanwhile, Republican radio host and former Illinois congressman Joe Walsh has told Politico he is considering challenging Trump to a primary, calling the president the "unfit divider-in-chief".
 
“If I’m to do it, it’s going to happen soon... I’ve been really surprised by the amount of anxiousness from people across the spectrum who want this president to have a challenge, because there’s just a real concern that he’s absolutely unfit.”
 
Asked whether he has the cash to back himself, Walsh answered: "Abso-freaking-lutely. There’s a drumbeat from a lot of people out there for somebody who wants to take this on... I think if there is an alternative out there, the money will follow."
 
Ex-Arizona senator Jeff Flake and the former governors of Ohio and South Carolina, John Kasich and Mark Sanford, are thought to considering GOP challenges along with Bill Weld.
Speaking of the 2020 field, New York City mayor Bill de Blasio has laughed off an audio glitch that left him with a squeaky autotuned voice worthy of Alvin and the Chipmunks as he appeared via video feed at an event for labour union Iowa ALF-CIO.
Hollywood actress, Broadway star and regular Trump antagonist Bette Midler has meanwhile written a naughty poem about Melania Trump.
 
The president famously branded her a "washed up psycho" back in June.
 
Here's Alexandra Haddow with more.
 
More on Trump's curious word-slurring yesterday here from Tom Embury-Dennis.
 
The habit has led many to speculate the president might not be in as rude health as he likes to insist.
 
Trump tweeting praise yesterday from evangelical broadcaster and conspiracy nut Wayne Allyn Root and later describing himself as "the chosen one" might give you pause to wonder how out of control his Messiah complex might get or even whether he has sincerely found religion.
 
But unless Mike Pence has finally gotten to him, this resurfaced clip from a 2015 interview with Bloomberg TV's With All Due Respect should leave you in little doubt about just how sincere his Christian faith really is.
 
Incidentally, as Andy Gregory points out below, there's a major flaw in Root's argument for Trump. Jews don't believe in a second coming.
 
The news that Trump's former press secretary Sean Spicer will appear on the upcoming season of ABC's Dancing with the Stars, America's answer to Strictly Come Dancing, has provoked an angry outrcry on Twitter, of which the below is fairly indicative.
 
Here's Charlotte Clymer for Indy Voices on why Spicer belongs on a blacklist, not a ballroom floor.
 
Hillary Clinton is getting a lot of love - three years too late, alas - after replying to this tweet from rapper Lizzo, which replaces the national anthem at a 2016 presidential debate with her track "Truth Hurts".
 
Here's Lowenna Waters to explain.
 
Trump's big day of distraction yesterday was surely intended to try and shift the news agenda away from the economy.
 
The president's torrent of controversial remarks happened to coincide with the news that the federal budget deficit is expected to balloon to more than $1trn (£823bn) in the next fiscal year under the first projections taking into account the big budget deal that Trump and Congress reached this summer, the Congressional Budget Office reported.
 
The return of $1 trillion annual deficits comes despite Trump's vow when running for office that he would not just balance the budget but pay down the entire national debt.
 
"The nation's fiscal outlook is challenging," said Phillip Swagel, director of the nonpartisan CBO. "Federal debt, which is already high by historical standards, is on an unsustainable course."
 
The office on Wednesday upped this year's deficit projection by $63bn (£52bn) and the cumulative deficit projection for the next decade by $809bn (£666bn). The higher deficit projections come even as the CBO reduced its estimate for interest rates, which lowers borrowing costs, and as it raised projections for economic growth in the near term.
 
The number crunchers at CBO projected that the deficit for the current fiscal year will come to $960bn (790bn). In the next fiscal year, which begins 1 October, it will exceed $1 trillion.
 
The CBO said the budget deal signed into law earlier this month, which took away the prospect of a government shutdown in October and the threat of deep automatic spending cuts, would boost deficits by $1.7trn (£1.4trn) over the coming decade. Increased spending on disaster relief and border security would add $255bn (£210bn). Downward revisions to the forecast for interest rates will help the picture, trimming $1.4 trn (£1.15trn).
 
Swagel said the federal debt will rise even higher after the coming decade because of the nation's aging population and higher spending on health care. To put the country on sustainable footing, Swagel said, lawmakers will have to increase taxes, cut spending or combine the two approaches.
 
The CBO projects that the economy will expand more slowly, from 2.3 per cent this year to 1.8 per cent on average in the next four years. The assumption reflects slower growth in consumer spending and government purchases, as well as the effect of trade policies on business investment. It also projects the unemployment rate will remain close to its current level of 3.7 per cent through the end of 2020 and then rises to 4.6 per cent by the end of 2023.
 
The CBO's estimate is the first to reflect the hard-won budget and debt deal signed into law earlier this month.
 
"The recent budget deal was a budget buster, and now we have further proof. Both parties took an already unsustainable situation and made it much worse," said Maya MacGuineas, president of the private Committee for a Responsible Federal Budget.
MacGuineas said lawmakers should ensure the legislation they enact is paid for and redouble efforts to control the growth in health care costs and restore the solvency of the Social Security programme. Her organisation is focused on educating the public on issues with significant fiscal policy impact.
 
Senior White House adviser Kellyanne Conway pivoted to the president's desire to fund the military and other programs when asked about the report.
 
"We're always concerned about the deficit," Conway said. "We also need to fund a lot of the projects and programmes that are important to this country."
 
AP
 
The 538 members of the electoral college, who select the US president and vice president, are not bound to follow the popular vote of their states, according to a new ruling by the 10th US Circuit Court of Appeals.

The decision comes after a group of Colorado members tried to stop Trump becoming president in 2016 by uniting behind consensus candidate John Kasich, ignoring the state's popular vote in favour of Hillary Clinton.
 
The ruling is likely to prompt further criticism of a controversial system often attacked as outmoded.
 
Zamira Rahim has this report.
 
For Indy Voices, Jay Caruso warns Trump's spat with Denmark could have serious diplomatic repercussions.
 
Also for Voices, James Moore argues Trump has crossed the line and is now behaving like a dictator.
 
After a good night's sleep, Trump is back to bashing the Fed over his coffee and toast.
Having dropped out of the 2020 race, John Hickenlooper has announced he is running for the Senate instead. 
 
Here's his new campaign video.
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