Even South Dakota’s right-wing governor is bemoaning what Trump is doing. But I’ve seen little indication that his political support is really plummeting in farm country the way it should. Making that happen would seem to be a “hard row to hoe.” (Weak, I know. I typed it anyway.)President Donald Trump is seeking an additional $15 billion in U.S. subsidies in an effort to protect farmers from the devastating impact of his trade war with China. That’s on top of $12 billion already earmarked for the farmers to help them weather the fallout.That would be an additional bill for U.S. taxpayers already shouldering the cost of increased tariffs in the form of higher costs for products and parts from China.Trump revealed the subsidy figure in a tweet Friday. He suggested the government use the funds to buy agricultural products to ship to other nations for humanitarian aid, though setting up such a system would be extremely complicated. In his most recent budget proposal, Trump proposed eliminating three food aid programs, Politico noted.The president appeared to dismiss the impact of the cost as he falsely claimed — again — that “massive” tariff payments are being paid by China “directly” to the U.S. Treasury, which would presumably be used to cover the cost of the subsidy. There is “absolutely no need to rush” to negotiate a deal with China, he tweeted. - Huffington Post
Tuesday, May 14, 2019
Trump in full-on lunatic mode as his trade policy crushes farmers
I know, when is he not in “full-on lunatic mode?” Anyway:
Secretary Perdue stated that he believes that the money will come from the Commodity Credit Corporation, as it did last time.
ReplyDeleteCCC has permanent,indefinite authority to borrow up to $30 billion from the Treasury.
Reports are that Trump is now eyeing $15-20 billion ... of course, we don't know how much they have already borrowed so far this fiscal year ... so Trump could be stymied.
Considering that China has historically been a buyer of US Treasury bonds, I wouldn't be surprised if they decline to participate in the next couple auctions.