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# Could Media Speculation Sink Trump’s Booming Economy?
- URL: https://goodoil.news/could-media-speculation-sink-trumps-booming-economy/
- Published: 2019-08-17T02:30:06.000Z
- Updated: 2019-08-16T05:07:47.000Z
- Author: Cam Slater
- Tags: Economy, Media, NZ, Politics, USA Politics, #wp, #wp-post, #Import 2024-07-17 03:49

With the US economy booming it’s hard to imagine a recession but because other markets are not faring anywhere nearly as well, adverse speculation could impact the US.

> Donald Trump has once again lashed out at the media, but this time to blame reporters for trying to tank the US economy in a conspiracy to deny him a second term in the White House.  
>  
> The president’s attack comes after Mr Trump delayed imposing some further tariffs on [China](https://www.independent.co.uk/topic/China?ref=goodoil.news) as the two countries engage in an ongoing [trade war](https://www.independent.co.uk/topic/trade-war?ref=goodoil.news), and as some economists have warned of a looming recession that could drag down the president’s re-election prospects.   
>  
> “The Fake News Media is doing everything they can to crash the economy because they think that will be bad for me and my re-election,” Mr Trump said.”   
>  
> *[The Independent UK](https://www.independent.co.uk/news/world/americas/us-politics/trump-economy-recession-media-us-china-trade-war-tariffs-a9061636.html?ref=goodoil.news)*

  
Trump’s recent tweets spell out what he thinks media are up to.

> “The Fake News Media is doing everything they can to crash the economy because they think that will be bad for me and my re-election. The problem they have is that the economy is way too strong and we will soon be winning big on Trade, and everyone knows that, including China!”  
>  
> “If they don’t get this Trade Deal with the U.S. done, China could have it\[s\] first recession (or worse!) in years. There’s disinvestment in China right now. Also, the Fed is too tight (I agree).” Steve Moore, Heritage Foundation”   
>  
> “Walmart, a great indicator as to how the U.S. is doing, just released outstanding numbers. Our Country, unlike others, is doing great! Don’t let the Fake News convince you otherwise.”   
>  
> *Twitter*

  
The problem is that adverse speculation can fuel a financial downturn.

> Markets around the world suffered after the spread between two-year and 10-year Treasury yields turned negative, a development that has historically preceded every U.S. recession in the past 50 years, though sometimes by a margin of 24 months.  
>  
> **Two of the world’s biggest economies, Germany and the United Kingdom, appear to be shrinking**; China — which is embroiled in a year-long trade war with the U.S. — also seems to be teetering on the brink of a slowdown, and that’s excluding another wave of tariffs the U.S. will impose in mid-December.   
>  
> Whether the events are truly foreshadowing a recession within the next year or merely a concerning economic contraction, however, is unclear.   
>  
> Former Federal Reserve Chair Janet Yellen cautioned on Wednesday that she believed a recession is unlikely, suggesting the yield curve inversion as a reliable predictor could be wrong in this instance.”   
>  
> *[Fox Business News](https://www.foxbusiness.com/economy/recession-market-signs-economy-health?ref=goodoil.news)*

NZ media, as always, followed the lead of anti-Trump US media.

> “The New Zealand share market has **slipped in the wake of fears** of a United States recession and a big drop on Wall Street.  
>  
> But as is often the case, the response from local investors has not been as strong as seen in overseas markets so far.   
>  
> The NZX 50 quickly dropped 1.4 per cent on Thursday morning before recovering some of that ground and was down 1.2 per cent in mid-afternoon trading.”   
>  
> *[Stuff](http:// https://www.stuff.co.nz/business/115017819/kiwi-investors-react-to-fear-of-us-recession)*

  
As Trump well knows, speculation of doom and gloom can trigger a loss of confidence in the financial market, and rather than the facts dictating the outcome, media harbingers of doom could create a self-fulfilling prophecy.