Trump’s trip to Europe was a complete disaster, and not because he acted like a boorish bully

On his recent visit to Europe, he managed to convey once again his contempt for America’s European allies, and to demonstrate that he places more value on his own personal comfort than on the sacrifices that US soldiers have made in the past.

The trip itself cost millions of taxpayer dollars, yet Trump chose to skip a key ceremony honoring US war dead at Aisne-Marne American Cemetery because it was raining.

The White House offered up a cloud of unconvincing excuses for Trump’s absence, but other world leaders were not deterred by the fear of a few raindrops, and neither were past presidents Obama, Clinton, Bush, or Kennedy back in their day.

By choosing to stay warm and dry in his hotel room while other world leaders acknowledged the heroism of those who fought and died for freedom, Trump gave the concept of “American exceptionalism” a whole new meaning.

Overall, Trump seemed intent on proving that while the obligations of being president might force him to go on such trips, he doesn’t have to behave himself while he’s there.

For example, Trump is correct to accuse China of engaging in a variety of predatory trade practices and of failing to live up to its World Trade Organization commitments. He is also right when he complains that Europe has neglected its own defenses and relies too much on American protection (though he still seems to think NATO is a club with membership dues)..

He is hardly the first US official to criticize European defense preparations but being unoriginal doesn’t make it wrong.

Trump is also correct in his belief that Europe, Russia, and the United States would be better off if the divisions that presently divide them could be bridged or at least alleviated.

It would be better for Europe if Russia withdrew from Ukraine, stopped trying to intimidate the Baltic states, and stopped murdering former spies in foreign countries.

It would be good for Russia if Western sanctions were lifted and it no longer had to worry about open-ended NATO expansion. And it would be good for the United States if Russia could be pulled away from its increasingly close partnership with China.

For that matter, Trump wasn’t wrong to see North Korea’s nuclear and long-range missile programs as a serious problem that called for creative diplomacy.

The real problem is that Trump has no idea what to do about any of these issues, and he seems incapable of formulating a coherent approach to any of them. To the extent that he does have an actual policy toward Europe, for example, it is the exact opposite of what the United States ought to be doing.

Trump’s broad approach to Europe is one of “divide and rule.” He’s called the European Union a “foe” of the United States, and he has backed a number of the political forces that are now roiling the Continent and threatening the EU’s long-term future.

He endorsed Brexit, expressed his support for Marine Le Pen in France, and thinks well of illiberal leaders like Viktor Orban of Hungary and Andrzej Duda of Poland. Why? Because he thinks dividing Europe into contending national states will allow the larger and more powerful United States to bargain with each European state separately rather than face all of them together, and thus secure better deals for itself.

This approach might be termed “Neanderthal realism.” Playing “divide and rule” is a good idea when dealing with real enemies, but it makes no sense to sow division among countries with whom one has generally friendly relations and close economic ties, and when their collective support might be needed in other contexts.

This approach also runs counter to Trump’s stated desire to reduce US security commitments to Europe and to get Europe to take on greater responsibility for its own defense.

If you really want the United States to get out of the business of protecting Europe, you should also want Europe to be tranquil, capable, prosperous, and united after the United States withdraws. Why? So that Washington doesn’t have to worry about developments there and can focus its attention on other regions, such as Asia.

A Europe roiled by xenophobia, resurgent hyper-nationalism, and persistent internal wrangling wouldn’t be to America’s advantage; it would be just another problem area we’d have to keep an eye on.

Nor would a divided Europe be of much use in addressing any of the other problems on America’s foreign-policy agenda.

Why doesn’t Trump see this? Possibly because he is reflexively relying on the same tactics that brought him to the White House.

It has worked tolerably well here in the United States, because a lot of Americans are still angry or fearful and Trump is both shameless and adept at fueling those emotions. This same instinct leads him to behave abominably abroad: Insulting British Prime Minister Theresa May and London Mayor Sadiq Khan, deriding Prime Minister Justin Trudeau of Canada as “Very dishonest & weak” or derisively tossing Starburst candies to German Chancellor Angela Merkel during a meeting of G-7 leaders.

.. The problem, of course, is that the boorish behavior and conflict-stoking policies tend to backfire on the world stage.

.. Trump’s bullying bluster didn’t win big trade concessions from Canada, Mexico, or South Korea; the shiny “new” trade deals Trump negotiated with them were nearly identical to the old arrangements and in some ways inferior to them.

And given how Trump has treated America’s allies, why would May, Merkel, Macron, Abe, or Trudeau do him (or the United States) any favors? The declining US image abroad compounds this problem, as foreign leaders know their own popularity will suffer if they help Trump in any way.

.. Trump’s personal conduct is not even the biggest problem. Arguably, an even bigger issue is the strategic incoherence of his entire transactional approach. His overarching objective is to try to screw the best possible deal out of every interaction, but this approach instead makes it more difficult for the United States to achieve its most important foreign-policy goals.

.. Threatening trade wars with allies in Europe or Canada makes little sense from a purely economic perspective, for example, and it has made it harder for the United States to address the more serious challenge of China’s trade policies.

If Trump were as worried about China’s trade infractions as he claims to be, he would have lined up Europe, Japan, and other major economic actors and confronted China with a united front. Similarly, pulling out of the Iran nuclear deal and threatening allies with secondary sanctions not only raises doubts about America’s judgment (because the deal was working, and the Europeans know it); it just fuels further resentment at America’s shortsighted bullying.

.. It is increasingly clear that Trump was never the brilliant businessman he claimed to be; he got most of his wealth from his father using various shady tax dodges, and the Trump Organization may have been heavily dependent on illegal activities like money laundering.

.. We should focus less on his personal antics and inadequacies and focus more on his inability to formulate effective policies, even on issues where his instincts are in fact mostly correct.

.. Sadly, the 45th US president possesses a world-class ability to get things wrong, even when he’s right.

Putin Overplays His Hand

On July 6, Greece announced that it had “irrefutable evidence” that Russia was trying to undermine the Prespa agreement, by attempting to buy off officials and otherwise intervening in Greece’s internal affairs. In a pointed statement, Greek Foreign Minister Nikos Kotzias accused Russia of also funding protests within Greece, and declared that his country would not be bullied. Greece has now expelled two Russian diplomats, leading Russia to cancel an upcoming visit to Athens by Foreign Minister Sergey Lavrov, and to announce the expulsion of Greek diplomats from Moscow.

.. Russian mischief has also been detected north of the Greek border. According to Macedonian Prime Minister Zoran Zaev, Russia has funded anti-government protests and pushed Russian-oriented businesses in Macedonia to foment violence in the run-up to the September 30 referendum.

.. Russia has made no secret of its desire to weaken NATO. By opposing the Prespa agreement, it may be hoping to prevent Macedonia from joining the alliance. But even when pressed, Putin’s Russia will not acknowledge that it opposes Greek-Macedonian rapprochement, let alone apologize for taking active measures to interfere in Greek and Macedonian domestic affairs.

.. The irony is that Putin has long criticized the United States for overreaching and attempting to impose its values on others. In the Balkans and elsewhere, Putin has tried to present himself as a reasonable partner who will not ask questions about human rights or insist on respect for any particular set of values.

Yet it is now clear that neither friend nor foe should tolerate Russia’s foreign policy. The Kremlin has stepped up its policy of interfering secretly in other countries’ political processes. It has tracked down and attempted to murder former members of its security services inside NATO member states. And it has apparently tried to scuttle a hard-won agreement between two Balkan neighbors who are trying to overcome decades of mistrust.

.. Looking ahead, it will be important to remember that Russia’s foreign policy is motivated not just by spite and bitterness, but also by a nagging awareness of its own decline.

The Don and His Badfellas

The Trumps have often been compared to a mob family. Certainly, in the White House, they have created a dark alternative universe with an inverted ethical code, where the main value is loyalty to the godfather above all else.

An anti-Trump group called Mad Dog PAC has a billboard reading: “MAGA, Mobsters Are Governing America.”

.. As Michael Daly noted in The Daily Beast, “Traditionally, rats begin wearing a wire after they get jammed up.”

.. In the taped call, Cohen tells Trump that he has talked to the mogul’s trusted money manager and “Apprentice” guest star, Allen Weisselberg, about how to set up a company to reimburse David Pecker, the National Enquirer owner, for buying off Trump goomah Karen McDougal. Federal investigators in Manhattan now want to interview Weisselberg.

“Long term, this could be the most damaging,” Trump biographer Tim O’Brien told me, “because it gets into Trump’s wallet.”

.. Cohen the Fixer claims Trump knew about the Russian meeting during the campaign with his son and Paul Manafort. The president hit the mattresses on Twitter, denying it all.

.. Rudy Giuliani has somersaulted from a RICO-happy prosecutor to a man acting like a Mafia lawyer, telling Chris Cuomo that Cohen is an “incredible liar” when only three months ago he pronounced him “an honest, honorable lawyer.”

.. If the White House seems more and more like “Goodfellas,” it is not an accident.

“Trump has a very cinematic sense of himself,” O’Brien said. Like many on social media, he is driven to be the star of his own movie. He even considered going to film school in L.A. before he settled into his father’s business.

.. O’Brien recalled that Trump told him that he thought Clint Eastwood was the greatest movie star. “He and Melania model their squints on Eastwood,” the biographer noted. Trump also remarked, while they were watching “Sunset Boulevard” on the Trump plane, that a particular scene was amazing: the one where Norma Desmond obsessively watches her silent films and cries: “Have they forgotten what a star looks like? I’ll show them!”

.. Trump is drawn to people who know how to dominate a room and exaggerated displays of macho, citing three of his top five movies as

  • “The Good, the Bad and the Ugly,”
  • “Goodfellas” and
  • “The Godfather.”

.. As a young real estate developer, he would hang out at Yankee Stadium and study the larger-than-life figures in the V.I.P. box:

  • George Steinbrenner,
  • Lee Iacocca,
  • Frank Sinatra,
  • Roy Cohn,
  • Rupert Murdoch,
  • Cary Grant.

He was intent on learning how they grabbed the limelight.

.. “In his first big apartment project, Trump’s father had a partner connected to the Genovese and Gambino crime families,” said Michael D’Antonio, another Trump biographer. “He dealt with mobbed-up suppliers and union guys for decades.

.. “When Trump was a little boy, wandering around job sites with his dad — which was the only time he got to spend with him — he saw a lot of guys with broken noses and rough accents. And I think he is really enchanted by base male displays of strength. Think about ‘Goodfellas’ — people who prevail by cheating and fixing and lying. Trump doesn’t have the baseline intellect and experience to be proficient at governing. His proficiency is this mob style of bullying and tough-guy talk.”

As Steve Bannon noted approvingly, Trump has a Rat Pack air, and as O’Brien said, Trump was the sort of guy who kept gold bullion in his office.

.. Trump’s like a mobster, D’Antonio said, in the sense that he “does not believe that anyone is honest. He doesn’t believe that your motivations have anything to do with right and wrong and public service. It’s all about self-interest and a war of all against all. He’s turning America into Mulberry Street in the ’20s, where you meet your co-conspirators in the back of the candy store.”

 

Trump May Kill the Global Recovery

In a sharp departure from this time last year, the global economy is now being buffeted by growing concerns over US President Donald Trump’s trade war, fragile emerging markets, a slowdown in Europe, and other risks. It is safe to say that the period of low volatility and synchronized global growth is behind us.

.. In 2017, the world economy was undergoing a synchronized expansion, with growth accelerating in both advanced economies and emerging markets. Moreover, despite stronger growth, inflation was tame – if not falling – even in economies like the United States, where goods and labor markets were tightening.
.. Stronger growth with inflation still below target allowed unconventional monetary policies either to remain in full force, as in the eurozone and Japan, or to be rolled back very gradually
.. Markets gave US President Donald Trump the benefit of the doubt during his first year in office; and investors celebrated his tax cuts and deregulatory policies. Many commentators even argued that the decade of the “new mediocre” and “secular stagnation” was giving way to a new “goldilocks” phase of steady, stronger growth.
.. Though the world economy is still experiencing a lukewarm expansion, growth is no longer synchronized. Economic growth in the eurozone, the United Kingdom, Japan, and a number of fragile emerging markets is slowing.
.. while the US and Chinese economies are still expanding, the former is being driven by unsustainable fiscal stimulus.
..with the US economy near full employment, fiscal-stimulus policies, together with rising oil and commodity prices, are stoking domestic inflation.
.. the US Federal Reserve must raise interest rates faster than expected, while also unwinding its balance sheet.
.. the prospect of higher inflation has led even the European Central Bank to consider gradually ending unconventional monetary policies, implying less monetary accommodation at the global level. The combination of a stronger dollar, higher interest rates, and less liquidity does not bode well for emerging markets.
..  Despite strong corporate earnings – which have been goosed by the US tax cuts – US and global equity markets have drifted sideways in recent months.
.. The danger now is that a negative feedback loop between economies and markets will take hold. The slowdown in some economies could lead to even tighter financial conditions in equity, bond, and credit markets, which could further limit growth.
.. Since 2010, economic slowdowns, risk-off episodes, and market corrections have heightened the risks of stag-deflation (slow growth and low inflation); but major central banks came to the rescue with unconventional monetary policies as both growth and inflation were falling.
.. These risks include the negative supply shock that could come from a trade war; higher oil prices, owing to politically motivated supply constraints; and inflationary domestic policies in the US.
.. this time the Fed and other central banks are starting or continuing to tighten monetary policies, and, with inflation rising, cannot come to the markets’ rescue this time.
Another big difference in 2018 is that Trump’s policies are creating further uncertainty. In addition to
  • launching a trade war, Trump is also
  • actively undermining the global economic and geostrategic order that the US created after World War II.

.. the Trump administration’s modest growth-boosting policies are already behind us, the effects of policies that could hamper growth have yet to be fully felt. Trump’s favored fiscal and trade policies will crowd out private investment, reduce foreign direct investment in the US, and produce larger external deficits.

  • His draconian  will diminish the supply of labor needed to support an aging society.
  • His environmental policies will make it harder for the US to compete in the green economy of the future.
  • And his bullying of the private sector will make firms hesitant to hire or invest in the US.

.. Even if the US economy exceeds potential growth over the next year, the effects of fiscal stimulus will fade by the second half of 2019, and the Fed will overshoot its long-term equilibrium policy rate as it tries to control inflation; thus,

achieving a soft landing will become harder.

.. By then, and with protectionism rising, frothy global markets will probably have become even bumpier, owing to the serious risk of a growth stall – or even a downturn – in 2020.

.. With the era of low volatility now behind us, it would seem that the current risk-off era is here to stay.