Donald Trump's executive order on shower potatoes seems trivial, but it is a subtle seizure of power

During the chaos of the bustle of the tariff war market last week, Donald Trump published a directed decree: “Maintain an acceptable water pressure in shower potatoes”.

Like many people, I thought it was a joke until I read this piece to Bloomberg by Noah Feldman identifying it as another takeover.

These are not really showers, Feldman wrote, but an attempt to empty the law on administrative procedure (APA) of 1946, which is currently used by the federal courts to block the illegal actions of Trump.

What is Mar-A-Lago agreement?

While countries and markets are faced with the current benefits of its pricing policy, some wonder if Donald Trump has a larger plan to revise world trade and reset the industrial economy of America.

The order orders the Energy Secretary to overthrow a Biden era regulation defining the “shower head”, which was carried out as part of the APA “Opinion and commentary” process.

APA requires that the repeal of a regulation must undergo the same process, but Trump's order declares: “The opinion and the commentary are useless because I order the repeal.” In other words, because I say it.

Feldman writes that this is a direct and manifest violation of the law and contradicts the very reason for which the APA exists. If the Supreme Court allows it to get away with it, another judicial railings against a Trump autocracy will fall.

Remember, he stacked the Supreme Court during his first mandate.

And at 2 am on Friday, the US Senate finished the politicization of the military when he confirmed the lieutenant-general of the Air Force Retirement John Dan “Razin” Caine as president of the joint staff chiefs.

Caine did not occupy any of the seven previous jobs required by law for this post, but the president can cancel this law “in the national interest”, which he made to install a loyalist as manager of the highest -end rank of the American armed forces.

Should we literally take Trump?

Before his third election, Trump told Americans on several occasions what he was going to do, but he always did it in a way that seemed too theatrical to be real or frightening.

It is generally said that Trump's grandiose declarations should be taken seriously, but not literally, that it is only the extravagant rhetoric of a showman that cannot help himself.

But what happens if it had to be literally taken?

Here is a reminder of some of the things he said:

“We are committed to destroying you the Communists, the Marxists, the Fascists and the Radical Thugs who live as vermin within the limits of our country, who lie and steal and deceive the elections, the threat of external forces is much less sinister, dangerous and serious than the threat of the interior. Our threat is from the inside.”

“I am your warrior. I am your justice. And for those who have been injured and betrayed, I am your punishment.”

“The United States is an occupied country.”

“I think it should be very easily managed by, if necessary, by the National Guard, or if it is really necessary, by the military.”

“I am the only one who can save this nation.”

“I felt then and I believe even more now that my life has been saved for a reason: I was saved by God to make America great again.”

Remember that to impose prices on April 2, Trump declared an emergency under the international law on the economic powers of 1977, which gives it the power to bypass the congress for an emergency “from the United States”.

The urgency which has enabled it to strengthen the global trade system and to end 80 years of stability led by the United States is only the existence of trade deficits, which, according to its decree, indicates “a lack of reciprocity in our bilateral economic relations, price rates and American non-tariff barriers, and American economic policies from the American partners who abolish internal wages and consumption”.

If it's an emergency, everything is.

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For the emergency rooms from the United States, the 1976 National ACT ACT gives the US President extraordinary powers. If he declares a national emergency, this gives him control of communications and information, in particular the crisis or control of communication infrastructure, radio, wire services and probably the Internet himself.

It could also control transport and infrastructure for national defense and draw on the funds set aside for help in the event of a disaster or military construction.

It could restrict civil freedoms, such as movements or gatherings and call the National Guard or military reserves, use the military in America in support roles (but constrained by the Posse Comitatus Act, which requires an authorization from the Congress).

There are 136 distinct powers delegated by the Congress in an emergency; Only 13 require a declaration of Congress at the time.

It seems only a matter of time before Trump uses a crisis and the national emergency law to provoke a revolution in the United States.

Loadingtariff Impact is amazing and overwhelming

As for the commercial war crisis it manufactured, it was still China, not the 58 other beneficiaries of reciprocal prices such as Liechtenstein or Lesotho.

Now they go there: the American prices of 145% of the United States playing at 125% of China, but trade between the two countries was going to evaporate once the prices exceeded 50%.

If the prices persist, trade between them will stop and the United States will enter a serious recession. The implications of this for Australia cannot be overestimated.

Our greatest trading partner and our most important ally are about to undergo a major economic shock which will require the type of budgetary and monetary stimulation which was to be highlighted in the pandemic and the global financial crisis.

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But the two countries are now in-depth and limited by the prospect of losing the confidence of the financial markets, in particular the United States, where this already happens.

Last week, the US dollar dropped at the same time as long -term market interest rates increased, which happens to a country when capital fled for security. The fact that this happened in the United States, the ultimate security haven and the owner of the global reserve currency, is amazing and overwhelming.

Nevertheless, I am not sure that it was what forced Donald Trump to “clig eyes” and to suspend prices on countries other than China, which was the common story that it was the “vigilant bonds”.

Vigilants are bond merchants who respond to poor government policy by raising market interest rates and forcing a change. In October 2022, they did it for British Prime Minister Liz Truss, after his mini disastrous budget which caused a peak in the performance in the UK at 10 years from 1.8 to 4.3%.

But the American bond rate at 10 years old has only increased by half a hundred, from 4 to 4.5%, which would not have been sufficient even if it was looking at, which it would not have been, and this has already decreased when the break was announced.

A much more likely explanation is that these prices have never been intended to last that they were always used to extort trade agreements in small countries. (“Beautiful small export industry you have there, pity if something should happen to him.”)

The threat of these prices would not have worked because no one would have believed it. Calculation of a reciprocal rate only according to the size of a commercial deficit? It was ridiculous and mocked by economists and serious people around the world.

What tax policy of the major party leaves you better?

A political struggle concerning the relief of the cost of living appeared with a looming federal election.

So he had to do it, to prove that he would, then pause them while the agreements were forced to panic the exporters.

Ads will be dispersed over the next three months to glorify the godfather, Mr. Trump. The United States has become a gangster state.

Australia should rethink its relationship with America because the alliance becomes obeying.

Alan Kohler is a finance presenter on ABC News and also writes for an intelligent investor.

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