Donald Trump’s re-election bid is shaping up to be one of the most pivotal elections in American history.
If the Democrats win they will impose socialism, confiscate guns and throw open the borders to pass amnesty for millions of illegal aliens.
And to make matters worse, Donald Trump was just blindsided by some insanely bad news about his chances in 2020.
Donald Trump expects to count on the booming economy to form the backbone of his re-election campaign.
At a rally in New Hampshire, the President warned a Democrat President would tank the economy and wipe away the gains Americans secured in their retirement accounts.
“You have no choice but to vote for me because your 401(k), everything is going to be down the tubes,” President Trump declared. “Whether you love me or hate me, you’ve got to vote for me.”
However, the President’s pitch to voters to entrust him with four more years in the White House to continue the economic boom hit a major speed bump.
The stock market plunged more than 800 points last week on fears a recession would hit in 2020.
A survey of economists found 35 percent believed the economy would sink into a severe downturn in the next twelve months.
That’s because the interest rates for short-term and long bonds showed an “inverted yield curve.”
What this means is the interest rates were higher for short-term bonds than long-term bonds.
That is a warning sign for the economy because it means investors are parking their money in long-term investments because they believe the short-term economic outlook paints a bleak picture.
Economists take an inverted yield curve as a red flag a downturn is coming because it has appeared before every recession since 1955.
President Trump pushed back against the idea the economy was teetering on the cliff of a recession.
“We are winning, big time, against China. Companies & jobs are fleeing. Prices to us have not gone up, and in some cases, have come down. China is not our problem, though Hong Kong is not helping. Our problem is with the Fed. Raised too much & too fast.” President Trump continued, “Now too slow to cut Spread is way too much as other countries say THANK YOU to clueless Jay Powell and the Federal Reserve. Germany, and many others, are playing the game! CRAZY INVERTED YIELD CURVE! We should easily be reaping big Rewards & Gains, but the Fed is holding us back. We will Win!” President Trump tweeted.
In addition, the underlying economic data is still strong.
Retail sales beat expectations in July meaning consumers still feel confident to spend money.
If the American people felt a recession coming on, they would spend less and save to create a safety net for their family should the economy take a downturn.
The state of the economy in 2020 is vital.
The only Presidents that lost re-election in the 20th century – Herbert Hoover, George H.W. Bush, and Jimmy Carter – also saw a recession when they ran for a second term.
Great American Daily will continue to keep you up to date on any new developments in the 2020 Presidential Election.