Trump's embrace of white supremacy groups has far-reaching effects

The split sparked by President Trump's embrace of the white nationalist groups, which so delighted David Duke and Richard Spencer of those groups, is not only a replay of the civil war over racial divisions.   It has wide-ranging implications, including the economy.

Jeffrey Sonnenfeld of the Yale School of Management, told a CNBC anchor on Thursday that, if Trump's economic adviser Gary Cohn were to resign over this, "it could crash the markets."  

That White House Economic Adviser, Gary Cohn, who is Jewish, was reported by the New York Times to be "upset and disgusted" by Trump's response to the violence at the Charlottesville rally.   The groups Trump has been defending includes the Neo-Nazi, swastika-wielding, Heil, Hitler-saluting marchers.  Thus far, Cohn has made no public comments about his boss's remarks.

As a former Goldman Sachs financier, Cohn is not alone in the finance community.  Trump had appointed two advisory councils, made up of CEO's of leading corporations.   Elon Musk had resigned some time ago in protest of Trump's climate policies;  two others had resigned some time back over immigration policies and one over the transgender tweet.

But then an avalanche began this week with Kenneth Frazier's resignation over Trump's comments on the racial conflicts in Charlottesville.   Five more followed suit;  and, after one group had already written a letter to tell Trump they were disbanding their group, he quickly tweeted out a statement that he had dissolved both advisory groups.

When a Republican president loses the support of such a select groups of corporate CEO's -- not over economic policies, but over a moral issue that they know will sharply affect the economy, as well -- then he might as well resign right now.

Donald Trump cannot repair the problem he has created.   This latest issue is about race, nationalism and, yes, immigration;   but it is only the last straw.   This is not a blunder on Trump's part.   This is a revelation -- finally and undeniably -- of the lack of moral substance and moral compass in the very heart of this administration, the president himself.

Ralph