{"id":477635,"date":"2020-10-10T10:34:34","date_gmt":"2020-10-10T14:34:34","guid":{"rendered":"https:\/\/goldtadise.com\/?p=477635"},"modified":"2020-10-10T10:34:34","modified_gmt":"2020-10-10T14:34:34","slug":"brilliant-indeed","status":"publish","type":"post","link":"https:\/\/goldtadise.com\/?p=477635","title":{"rendered":"Brilliant Indeed"},"content":{"rendered":"

As I posted here at the time, it was a brilliant strategic tactic. The talks had been held hostage by Pelosi for months and were never going to yield an acceptable deal before the election. By calling them off, President Trump had nothing to lose, despite the usual critics who always blame him for everything. Either, nothing happens and a deal is passed after the election favoring whichever side won the vote, OR the Dems come running back to the table and it looks like a compromise deal with both sides giving up something to gain something gets done. It still might not happen before the election but don’t be surprised if a deal gets done next week.\u00a0 John Rubino agrees with me.\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0” With a little hindsight, it\u2019s clear that this was one of his \u201cArt of the Deal\u201d <\/strong>tactics, albeit in compressed form.<\/strong><\/p>\n

You walk away from stalled talks, get in your car and drive off, leaving the other side stunned and, hopefully, softened up for compromise. Then you restart negotiations with each side a little more flexible, and \u2014 in this case the crucial second part of the strategy \u2014 the deal broken up into bite-sized, and thus more easily doable, parts.<\/em><\/p>\n

Huh. It appears to be working.<\/strong>\u00a0Mnuchin and Pelosi<\/a> are making hopeful sounds and the stock market \u2013 addicted as it is to ever-easier money \u2013 is now happily anticipating an extended high.<\/p>\n

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But the politics of this strategy are even more interesting than the finance.\u00a0The big conflict here is the Democrats\u2019 burning desire to bail out their party\u2019s governors and mayors colliding with Trump\u2019s aversion to rewarding those officials\u2019 horrendous mismanagement<\/strong>\u00a0(and refusal to vote Republican). Remember, California, Illinois, New Jersey, and their peers were looking at pension crises (i.e., functional bankruptcy)\u00a0before<\/em>\u00a0the pandemic hit.<\/p>\n

The strategy of breaking the stimulus bill up into pieces puts the Dems in a tough spot<\/strong>, having to oppose saving big, crucial industries and giving money directly to voters in order to protect bail-outs for Dem-run states. This is not a good place to be going into the election, but it\u2019s where Trump has put them.<\/p>\n

So, well-played, Mr. President. Whatever else you\u2019ve done, you have indeed taught the rest of us some lessons in hard-ball negotiating. We\u2019ll be better for it no matter where you end up next year.”<\/p>\n<\/div>\n

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