Well, well, well. Look who’s suddenly discovered the economic equivalent of a moral compass — only it spins wildly like a cheap novelty toy at a Trump rally merch table.
Welcome back to the newsletter, where reality checks are handed out like parking tickets in D.C.
Today we’re unpacking Donald Trump’s latest economic backflips. Or as I like to call them: The 2025 Gaslight Games.
On today’s pod, I sat down with Will Saletan from The Bulwark to dissect the chaos.
Spoiler alert: it’s not good. Unless you’re betting on volatility. Or authoritarian nostalgia. Or both.
Trump’s Greatest Hits: Now in Reverse
First, the Trump-Powell feud.
One minute Trump is threatening to boot Jerome Powell out of the Fed like an Apprentice contestant who forgot his lines. The next, he’s backing off, like a guy realizing mid-tweet that tanking the market is maybe — maybe — a bad look.
Then came the tariff tango with China.
Remember those glorious market-nuking duties that tanked the market faster than Rudy Giuliani’s legal career?
Well, Treasury Secretary Scott Bessent is now hinting that, actually, maybe we don’t want to ignite a trade war with the world’s second-largest economy after all.
Cute.
This isn’t strategy. This is someone flailing so hard they mistook gravity for genius.
Markets, Meet Your Emotional Abuser
Will and I tried to make sense of it. What we saw wasn’t policy; it was a toddler with nukes reacting to negative cable news coverage.
Politicizing the Fed is especially dangerous. When a president treats central bank independence like a suggestion, investors start wondering if maybe America isn’t the safe haven they were promised.
Welcome to Banana Republic Lite™, now available in red, white, and blue.
As Will argued, when you can’t trust the referees, the whole game breaks. Right now, we’re one bad tantrum away from stagflation and disco nostalgia. The 1970s called — they want their economic misery back, but not the sideburns.
So, Trump blinked. Why?
Because markets tanked, and even Fox News stopped showing the stock ticker like a kid hiding their report card.
Orwell wrote it as fiction; Trump reads it as a manual. Oceania is at war with Eastasia. Oceania has always been at war with Eastasia. Now let’s slap some tariffs on it.
Hope, in the Form of Fear
Here’s the only semi-encouraging takeaway: Trump is responsive — to panic. Not principle, not public good, but plummeting poll numbers and panicked warnings from CEOs.
That’s the “invisible hand” at work, baby! Markets scream, he pivots. For now.
But don’t confuse this with humility. The reversals aren’t admissions of error; they’re retconned as masterstrokes of 4D chess by a man who barely plays checkers.
Treasury, the press office, and assorted sycophants deny any change happened. Meanwhile, The Bulwark has video receipts. Watch it if you want to ruin your day.
Evil? Stupid? Why Not Both!
This administration walks a tightrope between authoritarian cruelty and garden-variety incompetence.
Take deportations: supposedly targeted, but somehow they keep nabbing U.S. citizens and green card holders. A feature, not a bug. Stephen Miller’s forked-tongue routine — “Oops, that family we tore apart was a mistake, but also, maybe terrorists?” — is the linguistic equivalent of shrugging while lighting your house on fire.
And don’t get me started on the press intimidation.
A 60 Minutes producer quit over pro-Trump bias, and Senator Lisa Murkowski is apparently one tweet away from being exiled to political Siberia.
But hey, I’m sure everything’s fine. Totally normal democracy things.
Next Moves? Your Guess Is as Terrifying as Mine
Here’s the kicker: These walk-backs? They could be strategic pauses. Temporary pivots before the next wave of madness.
Trump could decide next week that Canada is stealing our milk or that Australia is harboring woke kangaroos.
And the media pressure campaign isn’t slowing down. When dissent becomes dangerous, when facts are optional, when loyalty is demanded — that’s when you pay attention.
There Is a Way Out: Let’s Rage Together
It’s not all doomscroll and despair. Independent outlets like The Bulwark, and yes, newsletters like this one, are still calling the con in real-time.
As long as we’re able to connect the dots — and voters punish the chaos — there’s a chance to hold the line.
Will’s work is essential viewing if you want to stay sane. Check out his clips. Read his analysis. And support the journalists who are trying to shine a flashlight into the Funhouse of Mirrors that is Trump 2.0.
Is Trump backpedaling out of fear, or is this all just part of the show?
Evil, stupid, or both — what’s your take?
Drop a comment or reply.
And if you like your political commentary served with a side of gallows humor and mild existential dread, consider sharing this newsletter with a friend.
Until next time: Keep watching the markets. And maybe hide your 401(k) statement until further notice.
And stay sane!
Matt
P.S. Missed my chat with Will Saletan? Catch the podcast here. We cover everything from Powell to propaganda.
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