Tag: howard lutnick
Will Firing More Cabinet Members Improve Trump's Sagging Approval Numbers?

Will Firing More Cabinet Members Improve Trump's Sagging Approval Numbers?

A Reuters report on Saturday claimed President Donald Trump was weighing a “reset” in his administration to arrest what he considered “unfair” media coverage over his Iran fiasco. That one sentence undersells just how unhinged this is.

U.S. President Donald Trump is considering a broader cabinet shake-up in the wake of Attorney General Pam Bondi's removal this week, as he grows increasingly frustrated with the political fallout from the war with Iran, five people familiar with internal White House discussions said.

Of course he’s frustrated. He created this mess himself, and this time he can’t declare bankruptcy, stiff his creditors, or sic lawyers on the problem until it disappears. He promised “no wars,” and now he owns one. There’s no easy exit.

Any potential reshuffling could serve as a reset for the White House as it confronts a politically challenging stretch: The five-week-old war has driven up gas prices, dragged down Trump's approval ratings and intensified anxiety about the consequences for Republicans heading into November's midterm elections.

That’s the reality. Republicans tied themselves to Trump, and now they’re stuck with the consequences. The problem is the rest of the country and the world is stuck with him, too.

Some allies said his televised speech to the nation on Wednesday - which one senior White House official described as an attempt to project a sense of control and confidence about the direction of the war - fell flat, adding to the sense that changes in messaging or personnel were needed.

There was never a scenario where another rambling Trump speech was going to reassure anyone. If anything, it was always going to make things worse. People are done with him. They gave him a second chance, and he’s screwed it up beyond recognition. No one outside the MAGA deplorables is giving him the benefit of the doubt, ever again.

Several of the sources said Tulsi Gabbard, Trump's director of national intelligence, and Commerce Secretary Howard Lutnick are among those potentially on the chopping block, after Trump ousted Bondi and Homeland Security ⁠Secretary Kristi Noem in recent weeks.Trump has in recent months expressed displeasure with Gabbard, said one senior White House official. Another source with direct knowledge of the matter said Trump had asked allies about their thoughts on potential replacements for his intelligence chief

Gabbard is awful, but funny how his immediate hit list is all the women in his Cabinet. That’s not a coincidence.

The same report notes that Trump himself isn’t particularly bothered by Lutnick. The discomfort is coming from others in his orbit over Lutnick’s ties to convicted sex offender Jeffrey Epstein. Trump’s own history there speaks for itself.

Trump could ultimately decide, however, not to make any changes to his administration's senior ranks. Several others close to Trump have said the ⁠president is reluctant to overhaul his cabinet too frequently, after recurrent staffing changes during his first term dominated headlines and created the impression of chaos at the White House.

Nothing about this is about governing. He assembled a Cabinet of loyalists with little regard for competence, and now that his administration is trapped in a public opinion death spiral, his instinct is to reshuffle the deck rather than change course. The people he’s thinking about firing didn’t create the underlying problem.

Still, after his disappointing speech on Wednesday, doing nothing could be just as politically dangerous as making a significant change that, for better or for worse, would dominate news headlines, one White House official said.

Actually, doing nothing for the next three years would quite literally be the best political move Trump could do.

Trump worked with his speechwriting team and top advisers on this week's prime-time address, one official said, after aides had urged him for weeks to speak directly to the nation about the U.S. role in Iran [...]"The speech did not accomplish what it was supposed to," the official said, adding that while Trump's core supporters still backed him on the war, they are broadly under economic strain.

Even that framing misses the point. The issue isn’t presentation. It’s the substance.

Two ⁠of the White House officials said Trump is extremely frustrated with what he perceives to be unfair media coverage of the war in Iran, and he has made clear to his team he wants more positive news accounts. He has not indicated, however, that he is interested in adjusting his own messaging strategy.

There is no “messaging strategy” to adjust. The behavior is the problem. Demanding better coverage while continuing the same actions that caused the backlash is not a plan.

If Trump wants more positive news coverage, there is one obvious option: step aside.

Still, the sources said the possibility of a shake-up had grown decidedly more serious in recent weeks. One senior White House source said Trump wants to make any big changes now, well ahead of the midterms.

Quite literally every single one of his Cabinet members deserves to be fired, and every single possible replacement would look the same: loyalists first, competence optional.

We are stuck in a political nightmare. The only silver lining is that Trump, himself, is as well.

Markos Moulitsas is founder and editor of the blogging website Daily Kos and author of three books.

Reprinted with permission from Daily Kos

Bessent and Lutnick with Trump in Oval Office

Bessent And Lutnick's Fantasy Stock Earnings Won't Finance Your Retirement

We all know how Trump likes to make up crazy numbers, which his lackeys then repeat. He has $18 trillion in foreign investment coming into the country. He won the 2020 election by millions of votes. He is lowering drug prices by 1500%.

We can usually just laugh these off as the ramblings of an old man suffering from dementia. But there is one crazy Trump number that it is important people know should not be taken seriously. This is the claim on stock returns that lackeys like Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick tout when telling people how much money their new-born kid can get from their Trump accounts.

In their telling, the $1000 that the government is putting into the Trump accounts, starting this year, will grow to more than $590,000 when the kid reaches retirement age. If their families are able to put the full $5,000 allowed into the account, they will have more than $2.5 million when they reach retirement, and that assumes no further contributions. (They can put up to $5,000 a year into the account.)

That’s a serious chunk of money, even if we cut it by four to adjust for projected inflation over this period. It’s also serious nonsense. The problem is that there is no plausible story whereby the stock market can provide the 10 percent nominal return the Bessent-Lutnick gang is pushing. In their story, price-to-earnings ratios would have to go through the roof.

By 2093, when our newborn kid plans to cash out the fortune in their Trump account, their 10 percent compounded returns would imply a price-to-earnings ratio (PE) of almost 1400. The problem is that if the Trump accounts are growing at the rate of 10 percent a year, the economy and corporate profits are only growing at a bit less than 4.0 percent annually. This causes the PE to go through the roof.

This is not an old problem. Some of us have been trying to point this one out to arithmetic fans ever since the Social Security privatization debates of the 1990s. While the stock market has historically provided returns that were higher than the economy’s rate of growth, this was possible because the PE in the stock market has averaged around 14 to 1. It is currently close to 40 to 1.

The simplest way to calculate the real rate of return consistent with a stable PE is to simply take the reciprocal of the PE ratio. When the PE ratio is 14, the sustainable real rate of return is 7.1 percent percent. Adding in inflation that has averaged close to 3.0 percent, gets the 10.0 percent that we can see going back 100 years.

But with the current PE close to 40, this sort of rate of return is not possible unless the PE gets ever higher. The sustainable real rate of return would be just over 2.5 percent. Adding in projected inflation of 2.3 percent gets us to 4.8 percent, well below the Bessent-Lutnick promise.

The moral of this story is that, just as no one in their right mind would take health advice from RFK Jr., no one in their right mind should take financial advice from the Bessent-Lutnick gang. As the saying goes, do your own research.

Dean Baker is a senior economist at the Center for Economic and Policy Research and the author of the 2016 book Rigged: How Globalization and the Rules of the Modern Economy Were Structured to Make the Rich Richer. Please consider subscribing to his Substack.

Reprinted with permission from Dean Baker.

'National Review' Demands That Trump Explain Why He Protects Epstein Cronies

'National Review' Demands That Trump Explain Why He Protects Epstein Cronies

National Review writer Noah Rothman admits Democrats are tearing President Donald Trump to shreds for clinging to friends and confidants of convicted sex trafficker Jeffrey Epstein.

Rothman pointed to a recent X post by Rep. Ilhan Omar (D-MN) — which accused Trump of protecting child abusers and claiming that in her home country of Somalia, child predators are executed — to argue that Trump is carrying the kind of baggage that could bring down an entire administration.

“The president and his allies have not been able to leverage reckless remarks like these, render them liabilities and impose a political price on their expostulators,” Rothman wrote. “They don’t even seem to be trying. It’s not at all clear why.”

Trump’s “onetime aide and federal convict, Steve Bannon,” was “chummy with Epstein long after the child abuser was convicted of his crimes,” reports Rothman. “Indeed, even on the eve of Epstein’s final arrest, Bannon was committed to making a documentary about the former financier explicitly designed to rehabilitate his image.”

So why on earth, demands Rothman, would Trump’s solicitor general, D. John Sauer be lobbying an appeals court to drop charges against Bannon to erase his conviction for obstructing the House's January 6 investigation?

“Behavior like this is the augur in which conspiracy theories bloom,” warned Rothman.

Similarly, Trump’s Commerce Secretary Howard Lutnick “maintained surreptitious relations with Epstein long after he repeatedly claimed (once, under oath) that he cut the pervert off, (after 2005),” according to what Rothman told CNBC.

But the so-called ‘Epstein Files’ made Lutnick out to be a liar by revealing that in December 2012, Epstein invited Lutnick to lunch on his private island in the U.S. Virgin Islands. The two also had business dealings as recently as 2014, according to CBS News.

Any retaliation the Trump administration makes against Democrats’ Epstein accusations, said Rothman, “will be limited by the administration’s efforts to shield those in Trump’s orbit with deeper ties to Epstein from accountability.”

“Certainly, figures like Bannon and Lutnick, who are guilty not of mere association but of misleading law enforcement, lawmakers, or the public, complicate the White House’s efforts to indemnify the president,” said Rothman. “It’s not at all clear why these two replaceable components in the MAGA machine are worth the effort."

Reprinted with permission from Alternet

Howard Lutnick And The Buffoonish Banality Of MAGA Evil

Howard Lutnick And The Buffoonish Banality Of MAGA Evil

There’s a longstanding tradition in American politics of what Richard Hofstadter famously called the paranoid style – a way of thinking that sees conspiracies lurking everywhere. MAGA-world is particularly riddled with conspiracy thinking – from George Soros and Jewish space lasers, QAnon and the Great Replacement Theory, to Italian satellites hacking into voting machines to deliver the 2020 election to Joe Biden.

But these are far-fetched fantasies. The truth is far more banal and shocking.

There are people in positions of great power in the U.S. government engaged in evil conspiracies against everything that is good and decent. Their conspiracies are far more extensive and damaging than almost anyone imagined. But there are no evil masterminds behind this. Only amoral, stupid grifters like Howard Lutnick.

During Trump 47’s first year, Lutnick, the Commerce secretary, was an omnipresent spokesman for Donald Trump’s policies, a constant presence on TV, especially the Sunday talk shows.

He was not impressive in that role. Unlike Scott Bessent, he lacked any hint of gravitas. He doesn’t have Pete Hegseth’s hair. Moreover, Lutnick’s Trump boosterism has been consistently and embarrassingly incompetent.

The only waves he has made are a result of his exceptional combination of stupidity and offensive tone-deafness.

Thus he promised to revive U.S. manufacturing by bringing back “the work of millions and millions of human beings screwing in little, little screws.” Lutnick, a billionaire, dismissed concerns about chaos at the Social Security Administration by saying that his mother-in-law wouldn’t complain about a missed check. He gave a Europe-bashing speech to a private dinner at Davos so offensive that Christine Lagarde, president of the European Central Bank, walked out.

And in Congressional testimony today, Lutnick admitted that he visited Epstein Island, but said that he did so with his wife, nannies and children, and asserted that “We left with all of my children.”

It would be tempting to dismiss Lutnick as a buffoon. Yet despite his intelligence deficit, he sits at the intersection of not one but at least two ugly conspiracies.

Before joining Trump’s cabinet, Lutnick ran the Wall Street firm Cantor Fitzgerald — presenting a huge potential conflict of interest that he claims to have ended by turning the business over to … his sons. Cantor Fitzgerald, in turn, is intimately linked to Tether, a cryptocurrency that is highly profitable because it has become a favorite channel for money-laundering by international criminals.

Nor was money-laundering through cryptocurrency the only criminal conspiracy to which Lutnick was, at the very least, adjacent. Lutnick has in the past vehemently denied having any association with Jeffrey Epstein, insisting that he severed all contact with the pedophile ringleader in 2005. But even the highly limited, extremely redacted release of the Epstein files — everything we’ve seen reeks of a major coverup — shows that he was flat-out lying. Not only did he stay in close contact with Epstein, the two men appear to have gone into business together.

But, at this point, who could possibly be surprised? The more we learn, the more pedophilia and criminal use of cryptocurrency look related, even like different aspects of a single conspiracy. Epstein, it turns out, was a major early investor in the crypto industry. In the backrooms of MAGA-land, passing around under-age girls is a lot like passing around insider crypto deals.

In any previous administration, Lutnick’s naked conflicts of interest and his Epstein lies would have led to his immediate departure. But Trump 47 is using his position to massively enrich himself, and whatever the Justice department is hiding, what we already know about Trump’s personal history is damning — “Grab ‘em by the pussy. You can do anything.”

Lutnick may be under wraps for a while, but don’t expect him to resign. Pushing him out would be a tacit admission that huge conflicts of interest, family business that enables crime and association with sexual predators are bad. Oh, and let’s not forget jaw-dropping stupidity. Not going to happen.

While MAGA-world’s fantasy villains like George Soros are brilliant and subtle, MAGA’s real villains are uncouth and dim-witted. Yet they carry out their sinister schemes in broad daylight. For all they need to flourish is utter shamelessness, along with the backing of a corrupt administration and a corrupt political party.

So it’s worth remembering Hannah Arendt’s observations about the architects of Hitler’s genocide, which led her to coin the phrase “the banality of evil”. As Arendt noted, the horrors of Nazism were not inflicted by brilliant geniuses, but through the normalization of thoughtless, amoral behavior that eventually turned into evil. Thus while Lutnick appears on the surface like a dim-witted backroom grifter, he is a warning of something far more sinister and malign lurking below.

Paul Krugman is a Nobel Prize-winning economist and former professor at MIT and Princeton who now teaches at the City University of New York's Graduate Center. From 2000 to 2024, he wrote a column for The New York Times. Please consider subscribing to his Substack.

Reprinted with permission from Paul Krugman.

Shop our Store

Headlines

Editor's Blog

Corona Virus

Trending

World