Donald Trump jail term could plunge US economy into 'banana republic' as huge warning sent
Former President Donald Trump’s Hush Money Trial Continues In New York
A former White House economic advisor warned of the catastrophic impacts Donald Trump being sent to prison would have on the US economy.
Kevin Hassett, former White House Council of Economic Advisers Chairman, said a prison sentence would be a “big risk” to financial security as the US is already experiencing a period of slow growth.
Trump has repeatedly broken the gag order on his hush money trial that prevents him from making statements about witnesses or the jury, culminating in Judge Juan Merchan threatening him with jail if he does not stop.
Hassett not only warned of the impacts on US markets but also took aim at the whole case, calling it “undemocratic” and “unconstitutional.”
He told Fox Business: “I really think if you look at the case in New York, that the judge is being so undemocratic, unconstitutional in his rulings against President Trump, it really looks like there’s a conspiracy to put him in jail, to put him behind bars.
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“And if President Trump is in chains, going to Rikers Island, then would you want to buy a US Treasury the next day?”
The US recently experienced the slowest period of economic growth in two years, growing by only 1.6 per cent from January to March, according to the Commerce Department.
Hassett cautioned that things could only get worse with the threat of prison looming of Trump, going so far as to say the economy will become a “banana republic” if the treat becomes reality.
He said: “The thing that I’m really worried about, about short-term risk for the economy, is that the Democrats are serious in this lawfare.
“And if they actually succeed, then imagine, it’s like we become a banana republic the moment they take him to Rikers. And I just can’t imagine what happens to Treasury markets that day.”
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He added that markets will “take note” of this threat Trump faces, and if it materializes, it will be “one of the bigger market effects that we’ve ever seen.”
He said: “Yields go way, way up and equities go way, way down. If you’re a Swiss investor and you’re thinking, ‘should I buy a US bond?’ And you see Trump going to Rikers on ridiculous charges, right? Then you’re not going to want to buy the bonds.”
On Tuesday, Trump’s attorneys were denied a request to move for a mistrial after Stormy Daniels’ testimony in the hush money case.
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