As the point is probably clear in the back of a lot of people’s minds, I am pointing it out anyway, that in the United States, it’s a rather precarious position legally, and likely an unconstitutional one, for the executive to implement a climate deal that was never ratified. The announcement made today by Donald Trump, that he has made the decision to pull out of the Paris climate deal was really just a twisted statement of the obvious – politically, the climate deal is a dead letter. He can’t implement it without a nod from the Senate, and the Senate, with its current makeup, isn’t interested. But I suppose that dressing the situation up to make it look like he is in control of something, anything, seemed like the thing for him to do. I am sure it will satisfy some, but will just add to his liabilities in the longer run because from here on out, whether scientifically justified or not, every El Nino and nasty storm that blows through will become Trump’s namesake. I can just imagine damage hurricane Ivanka or typhoon Jared will do. I would bet that they will even start naming earthquakes too. I can hear it now – we just experienced a Donald on the Richter scale!
It’s really such a pity, because here we seem to have a president who isn’t willing to go the extra mile when Congress shirks what many people see as its duty. And the guy is such a pushover about it, he takes the political liability for the choice of Congress onto himself. And I am starting wonder… is Trump really THAT stupid?
Nevertheless, I went all day reading about the economic terror and tragedy that pulling out the climate deal would cause – as if the deal really meant something. As the news hit that Trump was pulling the plug on it, the markets all turned modestly positive, and the dollar gained on the Euro, perhaps with the notion that we will cross the economic tragedy bridge when we come to it. Or perhaps the wisdom crowds is more insightful than is currently known.
Another interesting thing I noticed is that the WTI was down slightly. Whether there is more oil in our future or the price move was a reaction to the strengthening dollar, it’s hard to say. But I would probably place my chips on the spot that says we’ll soon be swimming in the stuff.