…“and we will win, and you will win, and we will keep on winning, and eventually you will say we can’t take all of this winning, …please Mr. Trump …and I will say, NO, we will win, and we will keep on winning”.
~ Donald Trump
There is something just over the horizon; if you know how to hear it, you can feel it coming. It’s beyond exciting.. it’s awesome… It’s like being a gearhead who shows up to the rebuild only to discover Carroll Shelby in the shop.
Holy cats!… It’s epic.
Before getting to that part, here’s the latest:
(Via Bloomberg) IBM Chief Executive Officer Ginni Rometty said she plans to hire about 25,000 people in the U.S. and invest $1 billion over the next four years, laying out her vision for filling technology jobs in America on the eve of a meeting of industry leaders with President-elect Donald Trump.
Rometty, who is on Trump’s advisory panel of business leaders, will join Facebook Inc.’s Sheryl Sandberg, Amazon.com Inc.’s Jeff Bezos and Alphabet Inc.’s Larry Page and Eric Schmidt at a summit with Trump Wednesday in New York that is said to focus on jobs.
During the run-up to the election, Trump made employment issues a mainstay of his campaign, promising to scrap trade deals he viewed as draining jobs from the country and impose tariffs on imports if necessary.
He has since claimed credit for preventing thousands of manufacturing jobs from moving overseas and used state incentives to strike a deal with Carrier, a unit of United Technologies Corp., to pull back on its plans to move some operations to Mexico. (read more)
OK, now lets look at the data-points. Today, we’ve got Bill Gates at Trump Tower with a very specific message, “innovation“. Please Watch:
♦ Now, remember Trump’s American economic principles: […] Because so many shifts -policy nudges- have taken place in the past several decades, few academics and even fewer MSM observers, are able to understand how to get off this path and chart a better course.
Candidate Trump is proposing less dependence on foreign companies for cheap goods, (the cornerstone of a service economy) and a return to a more balanced U.S. larger economic model where the manufacturing and production base can be re-established and competitive based on American entrepreneurship and innovation.
The key words in the prior statement are “dependence” and “balanced”. When a nation has an industrial manufacturing balance within the GDP there is far less dependence on the economic activity in global markets. In essence the U.S. can sustain itself, absorb global economic fluctuations and expand itself or contract itself depending on the free market.
When there is no balance, there is no longer a free market. The free market is sacrificed in favor of dependency, whether it’s foreign oil or foreign manufacturing, the dependency outcome is essentially the same. Without balance there is an inherent loss of economic independence, and a consequential increase in economic risk.
No other economy in the world innovates like the U.S.A. Donald Trump sees this as a key advantage across all industry – including manufacturing and technology.
The benefit of cheap overseas labor, which is considered a global market disadvantage for the U.S., is offset by utilizing innovation and energy independence.
The third highest variable cost of goods beyond raw materials first, labor second, is energy. If the U.S. energy sector is unleashed -and fully developed- the manufacturing price of any given product will allow for global trade competition even with higher U.S. wage prices.
In addition the U.S. has a key strategic advantage with raw manufacturing materials such as: iron ore, coal, steel, precious metals and vast mineral assets which are needed in most new modern era manufacturing. Trump proposes we stop selling these valuable national assets to countries we compete against – they belong to the American people, they should be used for the benefit of American citizens. Period. (read full outline)
♦ The next data-point is to witness the financial dream team […] President-Elect Donald Trump announces more members of his economic team. Steven Mnuchin for Treasury Secretary, Wilbur Ross as Commerce Secretary, and Todd Ricketts as Deputy Commerce Secretary.
In essence, the Trump economic patriotism platform takes shape with the introduction of a few more key members for the domestic economy dream team.
If you have followed the Trump economic mindset from the beginning, you’ll know exactly what the purpose of each of these players are into the larger scope of domestic capital infusion. Remember, one of the essential elements Trump needs is to create the environment where the best play is domestic, ie. Main Street, investment.
To reverse three decades of economic outsourcing, the investment scales (best return) must tip from Wall Street (global investment) to Main Street (domestic investment), that’s where Mnuchin, Ross and Ricketts come into play. Economic patriotism is leveraged by steering capital investment much like well constructed levies can steer the flow of water. (read full outline)
♦ The next data point is to recognize Trump plans to start things immediately. Meaning he needs the architecture for immediate capital infusion without waiting on congress or a long drawn-out legislative fight on the traditional battlefield of tax reform.
In essence Trump’s economic build needs a controllable financial vehicle – outside traditional or political lines. Now, check this out:
(New York, NY) — President-elect Donald J. Trump today announced his intent to appoint Gary D. Cohn as Assistant to the President for Economic Policy and Director of the National Economic Council. A renowned business leader, Mr. Cohn will help to both design and coordinate the President-elect’s America First economic agenda and make sure increasing wages for American workers will be a top priority.
==> He will also work closely with the President-elect’s economic team at the Treasury and Commerce Departments.
“As my top economic advisor, Gary Cohn is going to put his talents as a highly successful businessman to work for the American people,” said President-elect Donald J. Trump. “He will help craft economic policies that will grow wages for our workers, stop the exodus of jobs overseas and create many great new opportunities for Americans who have been struggling. He fully understands the economy and will use all of his vast knowledge and experience to make sure the American people start winning again.” (read more)
♦ Boom, there it is…. #1) the goal. #2) the plan, and #3) the architecture/foundation to repatriate the approximately $4 TRILLION in offshore U.S. corporate assets, via a new infrastructure bond program. We first mentioned the possibility yesterday:
My spidey senses are telling me there’s going to be a rather unusual infrastructure bond program. It would not surprise me to find Trump proposing a way to expedite $4 trillion in off shore corporate liquid assets getting repatriated, by offering a bond conversion with a zero to 5% income tax rate (basis), if the corporations repatriate the funds via Trump federal infrastructure bonds.
This alone funds the Trump infrastructure bill, and simultaneously initiates the southern border wall construction.
Those federal infrastructure bonds (containing repatriated revenues) could then be traded on the markets (returning capital to the bond holder – ie. the original off shore holding), allowing stock reinvestment, dividend payment or capital ependiture. Just a spidey sense, a gut prediction, but very Trumpesque. (more)
This approach could inject, almost immediately, corporate capital assets into domestic economic development.
Trump’s infrastructure proposals begins almost immediately, and he’d essentially be putting a plan before congress that works around their ability to co-opt it with special interests – or argue about it based on spending or deficits.
The Trump domestic economic plan begins immediately; and in the longer-term congress
yap’s about debates and argues the federal budget and Trump’s tax reform proposal.
Meanwhile the U.S. economy would begin almost immediate expansion.
Remember, the problem Ronald Reagan ran into in 1981 and 1982 was an economic response lag cause by waiting on congressional tax reform action to catch up with the economic stimulus of deregulation. It took until mid 1983 before the Reagan economic engine began firing on all cylinders.
By all appearances it seems Trump’s proposal would navigate around that legislative lag.