The FAFO Election

Trump_hands

A certain type of voter has a set of issues they care about, and seeks the candidate who most represents their view on the issue(s.) That’s probably true of some segment that cares most about abortion, for example, both from the pro-life and pro-choice sides.

trump_angry
Brave enough, angry enough for the Fuck Around and Find Out voters

Another type of voter has some agnosticism about a wide variety of issues, but feels a personal affinity – a vibe, a cultural fit, a style – with a candidate, and votes accordingly. Honestly, that probably describes me and my voting patterns more than I would care to admit. I’m part of various tribes, and I seek people who best represent my varying identities.

A third type of voter feels that their society – as they experience it day to day – has gone seriously wrong. The wrong people are in charge. The rules are stacked against them. Their economic prospects are at risk. Multiple threats exist near and far, and there are not enough strong leaders concerned with punching back against those threats.

I don’t honestly hang out with this third group much. I feel their presence in the rhetorical outreach of Donald Trump. He seems to know these people. And he offers them hope.

Fuck Around

I think if you’re in that third group, there’s no specific policy that matters much. What matters is that your leader is mad as hell, a little bit crazy enough to try to shake up the status quo, and has proven fearless in the face of adversity. I think you want someone who can fuck around with the existing elites, the failed structures, the scary direction that things seem to be trending.

If you’re wrong, well, at least you tried. The status quo was so terrible, so scary, that you needed a brave, angry, give-zero-fucks leader.

I think, unfortunately, the Fuck Around and Find Out voters – a majority it turns out of my fellow voting citizens – has made a serious category error.

He’s angry enough, it’s true. But not about any particular issue. He’s angry at the gnawing void in his soul that can’t ever be filled.

He’s willing to poke at the existing elites, that’s true. But not because of any true democratic, everyman-loving, impulse. He loves nobody. It stems from a will to dominance, which doesn’t have any ultimate agenda behind it, beyond the hedonic.

He will tear down what he can. He will corrupt what is corruptible. There are no moral limits within his sphere. I don’t know how much damage can be done in 4 years. But there’s no specific “find out” consequence that should be taken off the table.

Find Out

Jail or shoot opponents? I mean, it’s certainly on his mind a lot and gets ideated out loud.

Shut down newspapers, broadcasters, online media companies insufficiently compliant to his ends? He’s pre-announced that one.

Use the military against civilian protesters? He wanted that done the first time around.

Cut military and trade ties with our closest allies over financial disagreements? That’s the plan.

Forge closer ties with “strongman” autocrats in China, Russian, Hungary, and Saudi Arabia? Also announced.

Use paramilitary groups – Proud Boys, self-appointed militia, gun-rights supporters – to achieve violent political ends, with plausible deniability? That was the Jan 6 playbook, and he didn’t suffer any consequences for trying it before. The fucking Senate caved in the face of an obvious, albeit clumsy, coup attempt.

Demonize already marginalized group – immigrants, trans kids, single-mothers – for problems in America, a punching-down strategy that not only launched his campaign in 2015 but formed the core of his two election wins in 2016 and 2024.

Take the best economy in the world – lowest unemployment, highest stock market, fastest-growth, and tamed inflation – and fuck around by starting unilateral trade wars with tariffs against everybody? That’s his entire campaign promise in a nutshell.

No Limits This Time

Half of the people around him the last time around had moral limits. Which is why more than half of his top cabinet members denounced him in extreme, apocalyptic, terms. It was obvious before the first time that everything Trump touches dies, and so it made no sense (to me) that honest people would agree to hitch their reputations to his. But they did. They fucked around and they found it. But they also, reportedly, kept the country from lurching impulsive disasters, for which I am grateful in retrospect.

I cannot imagine a person who has moral limits would agree to join this incoming administration. Nobody could be that blind a second time.

There will be no shortage of grifters and fascists willing to join this time. There will be a severe shortage of qualified, moral, people around him.

The elected officials in his party in the House and Senate have also self-sorted since 2016. The strong and moral ones resigned or were drummed out of office over the last 8 years. The ambitious, the corrupt, and the compliant have stayed.

I don’t know what we’ll find out. I think if you’re not at least considering the worst case scenarios, that’s a failure of imagination. I do not take comfort in the fact that his own voter will find out, soon enough, how horribly wrong they have calculated this man’s ability to improve their situations.

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DJT Is Just Perfect

Have you ever seen a more perfect match up between public company Trump Media & Technology Group Corp – aka DJT the stock – and the public persona of Donald J. Trump, the man and leader? It’s beautiful.

DJT post merger through April 2024

It’s huge, and some people still don’t get it. The people who don’t get it should be fired. I would just say that to them: You’re fired! 

Or rounded up and deported. Or worse. It could be a bloodbath. Financially, I mean. Or I don’t know, maybe some other way? 

The fake media will try to focus your attention on the “fundamentals” of DJT the stock: $4 million in revenue in 2023, on a $58 million net loss for the year, followed by a $8 billion value when the merger was completed. Later, the company bounced in value between a $4 and $5 billion market capitalization. 

Did the stock drop in April because it was trading at a valuation of 2,000 times its annual revenue? No, you should not try to apply the low energy rules of traditional finance to DJT. 

DJT is a perfect meme stock

To try to describe DJT from a fundamental perspective is to live in the old boring world.

Meme stock investing – which is what drives interest in DJT the stock – is about the grassroots. It’s about real, American people who don’t need experience with the stock market to stick it to the man.

Yeah sure, DJT the stock is volatile. Over the course of a week in mid-April it’s gone up or down by at least 15 percent a day, multiple times. That’s what keeps people talking about it, like its namesake. People can’t get enough of Trump, it’s exciting.

The Wall Street elites can talk about fundamentals until they are bleeding out of their eyeballs or their wherevers. 

unhappy_trump

As a meme stock, the point in buying DJT is not to turn a profit. The point is to band together in a show of solidarity against the enemies of Trump, who are also incidentally the enemies of grassroots real Americans. What matters is faith. If everyone works together and buys DJT, it can’t go down. It’s as simple as that.

When everybody is against him, that’s the point of maximum power for Trump. Because if the stock begins to rise, the elites have to cover their shorts, and they can lose, literally, an unlimited amount of money. That’s how it works with heavily-shorted stocks. When all the hedge funds and big boys are short, that is when grassroots real Americans show their faith in Greatness, and Trump. We saw that with meme stocks like AMC and Gamestop in 2021. We’ll see it again with DJT. Can you imagine if it comes out that Nancy Pelosi and George Soros have shorted DJT? I’m not saying they did. I’m just saying that would be a sweet day of reckoning.

Trump-Miss-Universe-Moscow
Trump in 2013 with Aras Aragalov, Putin-linked billionaire, for Miss Universe Moscow

Next they’ll say the Russians are buying DJT. The Russians, the Russians! Always the Russians. They probably are, who cares? That’s a big beautiful country too. Beautiful women. Christians, I’m told. Trump even hosted a Miss Universe pageant there in 2013 and met all the important leaders then.

DJT built on fraud?

Like its namesake, DJT the stock has been in a series of byzantine legal tangles. 

When DJT’s predecessor company was just a blank-check company called Digital World Acquisition Corp prior to the merger with Truth Social, the company and people around it allegedly broke some laws. 

In July 2023 the SEC settled accusations that insiders had fraudulently purchased DWAC shares with knowledge of a merger with Trump’s Truth Social business for $18 million. 

Three other investors were accused in June 2023 of making $22 million of illegal profit from insider trading on advance knowledge of the merger. That’s a lot more illegal profit than the company had revenue in 2023.

If supporters of the Law and Order party regularly dismiss accusations, arrests, settlements, and convictions for fraud, does that mean we should doubt the sincerity of either DJT the stock or Donald Trump the leader? No. It just means that we need to root out the deep state swamp things in the SEC and FBI who have a not-so-hidden agenda. Law enforcement officers will do anything to try to attack Trump, which is very unfair.

Under the next Trump presidency, those very nasty prosecutors at the SEC and FBI will hopefully be taken care of, so we can get back to backing the blue and having Law and Order again.

The stock swoons in mid-April as more shares will trade soon

Now, as is only correct, Trump the man currently owns nearly 60 percent of DJT the stock. This briefly gave him in March 2023 a 4.8 billion net-worth bump, on paper. 

As of this writing, the stock is sharply down to $5 billion from an approximately $8 billion valuation, after it merged with Truth Social. 

[****Ric – we can check this market cap mid-week before publishing? It’s been super-duper volatile.]

Company filings on April 15 described a large supply of additional DJT shares that may soon become available to trade. 

As of now, less than 29 million shares of DJT freely trade in the marketplace. 

By September 2024 there will be roughly 200 million tradable shares of DJT. Trump the man owns 79 million total, with rights to acquire another 36 million. Other insiders own 30 million with rights to acquire another 4 million shares. 

Under ordinary rules for a company going public, Trump and the other insiders cannot sell any of their stakes in the company until September, after a 6-month lockup. Should those rules apply to Trump? Is it fair to apply rules in an extremely unfair-to-Trump world? You tell me. Maybe the board of directors can look into this.

Does this have all the makings of a classic pump and dump stock fraud? What makes you think that?

A recent filing by DJT the company notes that “Because President Donald J Trump is a candidate for President, he may, subject to the Lock-Up Period, divest his interest in Truth Social.” I have long admired his willingness to divest his business interests to avoid any possible conflict of interest, so it just makes sense that he may need to abruptly sell his company shares in September 2024 due to his imminent election to the Presidency. 

Did the stock drop in April because of the expectation that Trump will sell his shares, cleverly taking advantage of the blind faith of his supporters and leaving them holding an empty bag? Why would you say that?

Trump’s ability to shift losses onto others while preserving his own financial viability is interpreted by his supporters as entrepreneurial cleverness rather than recognized as venal.

This assumption of cleverness rather than venality covers a lot of Trump history, such as the bankruptcy of Trump Taj Mahal in 1991, Trump Plaza in 1992, Trump Hotel and Casino Resorts in 2004, and Trump Entertainment Resorts in 2009. Plus, the failure of various brands – steaks, wine – and the fraud settlement for Trump University.

What part about Trump’s long history of bankruptcies, plus refusing to pay workers and creditors, makes you think he would abruptly offload his stock on his most loyal supporters now? I just can’t believe he would do that to them. Literally in September 2024. Or sooner, if the company’s directors allow him.

If the end result of sticking it to the man by disregarding any rules about earnings or profits or an authentic business is that regular real grassroots Americans are eagerly fleeced, and the self-marketing genius who inherited his real estate fortune from Daddy gets his net worth inflated by a few billion dollars in the process, well that’s just further evidence of his cleverness, no?

This DJT meme stock is just perfect.

A version of this post ran in the San Antonio Express News and Houston Chronicle

Please see related posts

Trump – A Threat To Democracy I

Trump – A Threat to Democracy II

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A Visit To Trump Country

As a kind of time capsule regarding democracy in America, I wrote a bunch of posts (6) following the 2016 election. You can revisit them, starting with the first one here

In advance of next week’s election, I wanted to write about a recent ugly Saturday morning encounter. It fills me with dread for the election, and for whatever comes after.

Last month my family and I drove to a small rural Hill Country Texas for socially-distanced State Park family time.1 

Garner_state_park
Frio River in Garner State Park

During the drive 1.5 hours directly west of San Antonio, of course we saw our fair share of Trump2020 and Trump/Pence signs. That was to be expected. 

We live in a downtown San Antonio bubble which, like all of Texas’ cities, bleeds blue. But I know, overall, I live in a one-party state. 2 

Saturday morning, 9am, Central Breakfast Taco Time. Hill Country, Texas.

We drove from our AirBnB to the nearest drive-through breakfast place. There were only three places that seemed to be serving breakfast in town, and the first two didn’t appear to have outdoor seating. 3

Getting into the drive-through line required a second pass through, left onto a side road, before circling back and getting line. 

The first strange impression on this side road was the line-up of fifty or sixty cars, all parked but with people in them. This was in a very small town, where fifty cars represented a major part of the town’s population. 4

So many people lined up in cars, patiently waiting presented a puzzle at first. But I guessed (correctly, it turned out): Food Bank.

Parked in line for the drive-through tacos window we faced the Food Bank line, half a block away. But that wasn’t the big shock. The big shock happened after the middle aged, white lady in the drive-in window looked up expectantly, to take our order. 

Coffee, water, tacos. Normal stuff. 

mmm breakfast tacos

We could see two other wait staff – another middle-aged woman and a younger man – inside bustling around, serving the people seated inside the restaurant.

The blue t-shirts of the two waitresses matched. Maybe a uniform? But no, actually they wore a “TRUMP 2020” t-shirt, printed with large white lettering on dark blue.

That was surprising, as both waitresses wore the same political shirt at a taco place. 

But below, under three white stars to offset the TRUMP 2020, was the message, “FUCK YOUR FEELINGS.”

I turned back to my wife in the shotgun position. Had she seen this? Oh yes, she’d seen it. My two daughters in the back seat hadn’t read the shirt yet. 

Well. Despite her exhortation to self fornicate, I can say I had a whole bunch of feelings. 

Wearing a political t-shirt while serving breakfast is certainly a choice. A rare choice, but one that could only be taken with the knowledge of what the restaurant owner would want. And relatedly, what customers would want. But this was not an ordinary political t-shirt. This was an attack on any customer who didn’t share their sentiment. I don’t share their sentiment. 

“Fuck Your Feelings.”

Not: Vote Trump if you enjoy business de-regulation. 

Not: Vote Trump if you want lower taxes. 

Not: Vote Trump because you believe he’s a useful tool for placing judges who will rule in line with the current Christian-Political-Right.

Rather: Vote Trump, and also, if you have any disagreement with me – or any empathy for people who are different from yourself – go fuck yourself. 

That, I felt, told me a lot about what management of this restaurant believed. About customers of the restaurant. About this town. About America in 2020. And, I couldn’t help but think, about their feelings for the fifty or so cars lined up half a block away. Lined up for food.

fuck_your_feelings
The cruelty is the point

Something clicked into place for me. More concretely than it has in the past 5 years of the Trump nightmare. His supporters hate the people he hates. His contempt, his attacks, his denigration of others.

His denigration of “The Other.”

As Adam Serwer said long before me: The cruelty is the point.

They don’t care for his policies. (He has no policies.)

They care that he hates the right people. 

I couldn’t help but feel that the waitress’ t-shirt was a direct attack on the people lined up a half a block away, trying to get enough food for the week for their families. The people in line for food from the food bank aren’t thriving in Trump’s America. For that matter, the woman serving breakfast tacos to me through a drive in window isn’t thriving in Trump’s America either. 

fuck_your_feelings

But she seethes with hate. How else to explain “Fuck Your Feelings” as, practically a business slogan? She may have very little power, but she has power over the people in line for the food bank. She derives power from his attacks.

After we paid and she handed us out tacos through the window, she said goodbye with “Have a Blessed Day.” Because of course she did.

“Fuck Your Feelings!” Just like Jesus would say.

Did she notice the rainbow Beto sticker, leftover from his 2018 Senate campaign, on the back of our car?

Sunday morning, 10am Tubing Central Time. Hill Country Texas

The next day on our trip we rented inflatable tubes to go down the Frio River from an outfit that flew a “TRUMP 2020: No More Bullshit” flag. This wasn’t as aggressive as the taco place t-shirt uniform but was further confirmation that:

No_More_Bullshit

a) Only expletives properly express Trump supporter views, and

b) Trump, the greatest con artist in history, somehow always manages to make his supporters project Trump’s flaws on to the rest of the world. 

I mean, “End The Bullshit?” 

The guy is the biggest and most successfully bullshitting bullshit artist who has ever lived. And he has his supporters (I understand, between 40 and 45 percent of my fellow citizens) believing that Trump will “end the bullshit?”

I just. I mean. This is amazing. 

Anyway, here’s hoping our Democracy doesn’t end next week. 

american_flag

But if it does, well, Fuck Your Feelings. And do have a blessed day.

Trump Part I – Fever Dreams

Trump Part II – Review of Recent Elected Authoritarians

Trump Part III – The Use of Security Crises

Trump Part IV – The Economic and Financial Crisis

Trump Part V – The Constitutional Crisis

Trump Part VI – Principled Republican Leadership

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  1. Garner State Park and Lost Maples State Park. Both beautiful!
  2. There are no statewide elected Democrats as of October 2020. Maybe that will change on election day November 3 2020, but it still feels probably 4 years too early for a statewide Democratic win.
  3. Drive-through or outdoor seating is our key criteria for eating out, during COVID times
  4. The official population of Leakey, TX is 468 people. Fifty cars all lined up at the same time is…a lot

Weird Finances Of Trump Campaign Manager’s Company

Editor’s Note: This post ran as a newspaper column in November 2019. Parscale resigned from the board of the company on December 10th, according to a public company notice. I did an interview with Texas Public Radio about that development here.

The head of President Trump’s re-election campaign, Brad Parscale, serves on the board of – and owns rights to acquire a majority stake in – an odd penny stock company headquartered in San Antonio called Cloud Commerce.  The company publicly filed its intention on October 31, 2019 to raise up to $20 million through issuing preferred stock.

It’s clear from public company filings that Cloud Commerce needs this money. The firm has consistently lost money every single year since at least 2012, when current management took over. It’s less clear why anyone would give them money.

Cloud Commerce Logo

To state the obvious, successful companies fund themselves through ordinary revenues and, hopefully, profits. But it’s hard to maintain a company like Cloud Commerce afloat when it loses money year after year. You have to resort to either borrowing money or issuing new shares. Cloud Commerce has gotten into a weird financing habit of doing both.

“Substantial Doubt” and “Going Concern” language

The company’s disclosures, in dry auditor-speak, use boiler-plate language which reflects the financial reality of Cloud Commerce.

In a recent quarterly filing dated November 14, 2019, the firm wrote

 “The Company does not generate significant revenue, and has negative cash flows from operations, which raise substantial doubt about the Company’s ability to continue as a going concern.” 

The company’s annual report filed April 15, 2019, states “We have experienced net losses and negative cash flows from operating activities, and we expect such losses and negative cash flows to continue in the foreseeable future.”

This doubt about the company’s continuation “as a going concern” due to lack of revenue and losses each year is repeated in year-end filings every year going back to 2012, when the current management team took over. 

Parscale

The company had net losses and negative cash flows and substantial doubt about its ability to continue as a going concern in 2017 when it purchased Parscale’s business, which raises the question of what advantage Parscale saw in the sale.

Parscale received rights to obtain a majority of the shares in the company when he and his San Antonio-based partner sold their web and design company to Cloud Commerce in August 2017. 

Financing Through Convertible Debt

Before that, beginning in January 2016 and continuing right up until the week Cloud Commerce acquired Parscale’s business in July 2017, a primary source of working capital for the company appears to be loans from the company’s CFO, Greg Boden. Throughout 2016 Boden issued a series of loans worth a total of $1.1 million from an investment company he owns named Bountiful Capital LLC, to Cloud Commerce. 

Between May and July 2017, Boden made seven more smaller loans to Cloud Commerce, in amounts ranging from $26,000 to $105,000. 

All of that debt soon became a different financial instrument.

On the same day as the acquisition of Parscale’s company, Boden turned his total of $1.4425 million in loans into preferred shares that give him the right to convert into 144,250,000 common shares of Cloud Commerce.

If fully converted into common stock, the total amount of 144 million shares would exceed the amount of common shares outstanding in the company, currently 137 million. Conversion would make Boden the majority shareholder in the company.

Meanwhile, Parscale’s deal gave him the rights to own 225 million shares in Cloud Commerce. Those rights would make him the majority owner, if he chose.

Prior to that, an earlier transaction gave a different ownership group preferred shares with rights to own 450 million shares. 

Are you confused yet? It appears three different groups have to right to exercise an option to own a majority of Cloud Commerce.

In 2019, in the absence of sufficient revenue and profit, Cloud Commerce has continued to fund itself through convertible debt.

Seven times between January and July 2019, the company borrowed money at 10% annual interest, with the lender’s option to purchase new shares at a 39% discount to average market prices, six months later. So if the stock traded at an average of 0.01, the lender could convert the debt into shares at $0.0069. As of this writing, the company borrowed $397,000 this way in 2019. Public filings do not name the lender on the convertible notes between January and July 2019. 

If you squint your eyes a bit, these convertible notes represent a kind of financial magic for the lender. The game here is that the lender gets to convert the loan into common shares at a deep discount to the stock’s market price.

When you can buy something seemingly worth a dollar for just 69 cents, then in the finance world you want to do that type of transaction all day long. 

But to be clear, this is not a normal public company transaction.

Normal public companies sometimes do issue new shares at a slight discount to current market prices, such as 5%, to preferred investors, for strategic reasons. Normal companies do not, however, issue shares at a 39% discount to market prices. 

From the perspective of a normal existing shareholder in a public company, a company issuing shares at a 39% discount to market value would be bizarre and wealth-destroying. If Cloud Commerce had any meaningful outside shareholders, they would howl at the unfairness of new share issuance at a 39% discount. 

This in itself is not illegal. But it is bizarre.

Of course, it would be extremely difficult to ‘cash out’ Cloud Commerce shares at $0.01, to earn that theoretical free money profit, when there aren’t any noticeable willing outside buyers. Daily volume in this stock does not usually exceed $750. 

For insiders to profit, most penny stock schemes like this depend on a pump-and-dump mechanism. You know, issue a series of positive press releases to pump up hope among unsophisticated buyers who jump on board. These new buyers prop up the price long enough for insiders to dump their shares at a profit.

Who’s Zooming Who?

This brings us back to the great mystery of Cloud Commerce, and Trump campaign manager Brad Parscale’s willingness to get involved with them. What is the game here? As the late great Aretha Franklin once asked, “Who’s Zooming Who?”

Aretha
Who’s Zoomin’ Who?

If the general rule of strange penny stock companies like Cloud Commerce is that they are hotbeds of market manipulation and pump-and-dump schemes, we would kind of expect that the insiders would be looking to take advantage of outsiders. Issuing rights to create nearly a billion shares at around 0.01 over the past few years to insiders mostly just shuffles around who owns the company amongst the insiders. 

Potemkin_Company

Actually making money from share ownership would require outsiders to become interested in buying these shares. Whether for $0.01, or at whatever price. Failing that, you could try another scheme.

You could try for example to raise $20 million from credulous buyers, so that owning a majority of a $20 million shell company would actually be worth something. 

From everything I’ve seen, President Trump’s campaign manager Brad Parscale hopes to profit from questionable tactics in order to fool a gullible public with the flim-flam illusion of a successful businessman and a profitable business.

In a related story, he’s also involved with a company called Cloud Commerce.

A version of this post ran in the San Antonio Express News and Houston Chronicle.

Please see related post:

Potemkin-finances of Trump Campaign Manager company

Recording My Thoughts on Trump, in Fall 2019

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Pinning President Trump

Dictator_Trump

Like everyone, I honestly don’t know what’s going to happen with Trump. I have a grim theory, which I lay out at the end of this post.

In the spirit of a diary entry, I wanted to record my thoughts in October 2019. Impeachment has begun, but the outcome seems highly uncertain. I did this once before. In the month following the November 2016 elections I speculated on Trump’s future effect on authoritarianism, security crises, the economy, constitutional and democratic norms, and his fellow Republicans. On balance, versus those speculations, my worst fears about his authoritarian instincts have come to pass, and principled Republican opposition has been weaker than I even expected.1 We have not had a security crisis,2 nor a true economic crisis, thank goodness. In October 2019 we are, however, in the midst of the constitutional crisis I feared.

McConnell_Red_Wall
McConnell and the Senate “Red Wall” keep Trump in office, despite his obvious destructiveness to the Republic

If nothing changes from where we are now in mid-October 2019, it seems that the Republican red wall in the Senate will keep Trump in office, even after a Democratic House impeachment vote. I see the effect of that red wall as signalling a reward for Trump’s corruption, flouting of constitutional norms around the separation of powers and checks and balances, traitorous foreign policy, feckless and reckless financial and trade policy. Not to mention his general rapey approach to women and disgusting view of people living in or immigrating from Central America or Africa (or any place outside of Northern Europe.) And not just a reward, but a vindication of his style and an open invitation to do more crimes, more corruption, more subverting of our political system. Expect more rapeyness, more white nationalism, more inhumane treatment of immigrants. Why not? His party won’t abandon him.

As he famously said, he could shoot someone on 5th Avenue in broad daylight and get away with it. The puzzling challenge of Trump is that he commits the most brazen crimes in the open – profiting from his office through his hotel business, inviting corrupt authoritarian governments to destroy his domestic enemies, urging violence on the media and political opponents, siding with dictators, undermining our intelligence agents, wrecking global alliances built over generations – and we can’t quite believe our own eyes and ears. Surely he’s joking, right? Does he really mean that? Yes, he really does.

Given what we already know about Donald Trump as President, what would be required to alter Mitch McConnell and other Senate Republican’s views on impeachment? It’s hard to imagine what more in America he could fuck up.

Does the stock market have to go into free fall? Does Russia have to declare it is taking back Alaska and Trump says that’s fine, because Alaska is kind of a frozen shithole place and Fairbanks is no good for building gold-plated hotels anyway? Would that do it?

A few other thoughts.

  1. The Nixon resignation/impeachment experience shows that Republican supporters may stay strong up until the last minute, but that when they flip, they flip quickly and all at once. What causes that – beyond what we’ve already seen from the Trump administration, like Ukraine/China/Russia foreign policy treachery – I can’t really imagine. For them not to flip on Trump already at this point, but to flip at some further traitorous action…well, I guess things have to be even darker than they are today, which isn’t something to exactly look forward to.
  2. The Clinton non-resignation/impeachment experience shows that a President who has little personal shame and decides to just “stick it out” against his political adversaries will likely survive an impeachment vote in the Senate. All evidence suggests Trump has even less sense of personal shame than Clinton. So he’ll go the distance as long as he can. He’ll never resign if Republican Senators don’t turn on him.
My prediction: This comes down to what the people in uniform decide to do, when ordered by the courts

My own grim feeling about where we are headed at this point, given the lengths Trump and his supporters are willing to go to subvert the rule of law and to obstruct justice:

At some point removing Trump from office will come down to a choice made by the people who literally wear the uniforms and carry the badges indicating they have a monopoly on the legitimate use of force in our society.3 The uniformed folks will receive a set of orders from a court to arrest him, his family, or members of his inner circle, and he will shout to countermand those orders and to instead arrest Pelosi, Schiff, Nadler, AOC, or whomever comes to mind in his addled brain at that time.

Whether or not he is removed from office at that point will come down to whether the people in those uniforms feel they owe loyalty to an abstract set of constitutional ideals, or whether they feel they owe loyalty to the Commander in Chief shouting and bullying them and resisting arrest. I wish I were kidding that that’s where I think this is headed.

I wish I felt more secure that the people in the uniforms will make the right choice.

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  1. Paul Ryan caved. Rand Paul flipped. John McCain died. Lindsay Graham did whatever he did, with zero evidence of personal pride or consistency. Mitt Romney furrowed his brow and has expressed “concern.” If we were waiting for unified and principled Republican leadership as a check on the President, as I had hoped for in December 2016, we are officially fucked.
  2. I would say the daily & weekly mass-shootings & gun terrorism is a form of a security crisis, but not one that the Trump administration has exploited for consolidating its power, in the way it might if the daily & weekly gunmen were Islamic terrorists. Which they are not.
  3. I mean the police, the army, the secret service.

The Border Wall Nonsense

trump_border_wallInvasive vines creep over the hedge separating my house from my next-door neighbor’s house. Sometimes those vines even touch trees in my yard. That’s why every night I stand on the top of a giant ladder, shouting into a megaphone, straight into their yard. “You’re going to cut those weeds right now! And then you’ll pay for a gardener to get rid of the roots! You’ll see! I’ll make you pay!”

In a related story, I called up US Representative Will Hurd, (R-TX) whose Congressional district shares the nation’s longest border with Mexico – from El Paso to San Antonio – to ask him about who is going to pay for our promised “Border Wall” with Mexico. Unlike the interaction with my neighbors, this call actually happened.

Hurd stands by his earlier statement that the Trump-promised border wall is a “3rd Century solution to a 21st Century problem.”

“I still believe that building a wall from sea to sea isn’t the most effective way to do border security,” Hurd told me.

I asked about funding the wall, something that ultimately falls to Congress.

The Trump administration managed to secure $20 million in a budgetary move called “re-programming,” to allow the Department of Homeland Security to study different potential wall designs. One prototype under study is a 30-foot tall structure, which Hurd says would take someone around 4 hours to breach.

The real wall, however, would cost a lot more than the $20 million in starter funds.

While Trump has consistently promised a $10 to $12 billion price tag, independent estimates range from $25 billion to $67 billion, with an article in the MIT Tech Review settling on $40 billion.

That kind of money can’t be gotten through budgetary shuffling known as ‘reprogramming,’ but rather requires Congressional support. At the end of April Trump threatened to hold up a 2017 appropriations bill – needed to keep the federal government from an imminent shut-down – if Congress did not set aside $1.4 billion to begin constructing the wall. The Republican Congress called his bluff, and the wall-funding request dropped for 2017. Maybe it will be back for negotiation in 2018?

congressman_will_hurd
Will Hurd

Trump says it will. “Eventually, but at a later date so we can get started early, Mexico will be paying, in some form, for the badly needed border wall.” He tweeted. And then, “Don’t let the fake media tell you that I have changed my position on the WALL. It will get built and help stop drugs, human trafficking etc.”

In the meantime, spending billions this way makes no sense to Representative Hurd. As a former undercover CIA officer deployed to Iraq and Afghanistan, he’d advocate a smarter combination of technology, human intelligence, and cooperation with our Mexican counterparts.

“There’s 19 criminal organizations that we’ve identified. Let’s improve our intelligence on those groups and stop them before they get to the border. Ultimately, border security is important, and we need to do a better job.” See, that’s a reasonable, informed, approach.

Who would pay for this wall? We already know Trump’s repeated claim that Mexico will pay.

Former Mexican President Vicente Fox has a colorful way of expressing his country’s attitude. “We’re not building your fucking wall!” he has repeatedly stated to every media outlet on the planet. Unlike statements made by my own president, I believe him. Every Mexican schoolchild remembers 1848, even if most US residents do not know what happened that year. Mexico will no more pay for Trump’s border wall then the US will pay reparations to the Queen of England for territorial and property losses incurred between 1776 and 1783.

Realistically speaking, either US taxpayers pay directly for the wall, or US consumers pay for this indirectly through higher taxes on imports from Mexico. To do that, of course, we’re talking about big changes in the North American Free Trade Agreement (NAFTA), something President Trump also advocates.

Hurd disagrees with that approach as well. “NAFTA is important, end of story. The US, Mexico, and Canada, we build things together. We should be thinking about how we achieve more of this. There are ways to improve it…Updating NAFTA could be a model for free trade agreements around the world. We should be talking about how to strengthen NAFTA, not pull out of it.”

As for me, I’ve driven hundreds of miles through Hurd’s district, from Big Bend to San Antonio on I-90, noting the small towns that have already suffered as a result of stricter border controls. On that long, lonesome highway you see a preview of the economic devastation a border wall – or pulling out of NAFTA – would cause in Texas.

I have tried hard to find serious analysis of the cost of the border wall, serious methods of paying for it, and serious economic impacts of the wall. It cannot be done. The subject resists serious thought. It’s a deeply unserious promise made by a deeply unserious person. But here’s the serious problem for Trump with all his “border wall” talk. When you expose yourself as a bully and a liar on your single most important campaign promise, people remember. Mexico is on to Trump and is calling his bluff. Congress is on to Trump and is calling his bluff.

In the meantime, picture me on my big step ladder every night, megaphone in hand, shaking my fist at my neighbors’ weeds. “You’re gonna pay!” After the first few months, the neighbors stopped paying attention. But I know my starting position is a strong negotiating stance. I’m good at making deals. And people like me.

 

Please see related posts:

 

Trump – Sovereign Debt Genius

Trump – Threats to Financial and Economic Security

Trump – We need principled Republican leadership

 

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