National Economic Council Director Larry Kudlow argues the worst of the coronavirus pandemic is over and the U.S. economy is getting ready to reopen. Kudlow outlines the scale of the current economic relief package how any further discussion should focus on policies to launch the economic recovery.
The Bureau of Economic Analysis (BEA) released the first quarter Gross Domestic Product (GDP) advanced estimate and the result is a 4.8% decline in economic activity. [BEA Here]
The revised fourth quarter GDP shows the economy was growing at 2.1 percent prior to the COVID-19 shutdown. The severity of the change in GDP reflects a severe drop in consumer spending, essentially bringing the economy to a halt in March as the entire nation went into lock-down. As the BEA explains:
The decline in first quarter GDP was, in part, due to the response to the spread of COVID-19, as governments issued “stay-at-home” orders in March. This led to rapid changes in demand, as businesses and schools switched to remote work or canceled operations, and consumers canceled, restricted, or redirected their spending.
The full economic effects of the COVID-19 pandemic cannot be quantified in the GDP estimate for the first quarter of 2020 because the impacts are generally embedded in source data and cannot be separately identified. (more)
Digging down into the details the data shows what we all have seen. There is some specific data that is noteworthy in the tables.
Sometimes a special message needs a special messenger. Today, amid the anxiety and stress created by the coronavirus pandemic, a very special messenger named Michael visited the White House and delivered a very important message to everyone:
…”At Bitty and Beaus we like to use the phrase ‘not broken’. That means me and all my important co-workers are not broken, and we have lots to offer. I know the great country of the United States isn’t broken either.”… ~ Michael
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Indeed, this too shall pass.
Thank you Michael; thank you.
There is a tremendous amount of information and misinformation surrounding the current status of protein processing within the meat industry. Most of the misinformation comes from many people not understanding the total food supply-chain and how it works.
First, there is no shortage of meat protein products: beef, pork and chicken at the farm level. However, the problems arise within processing, manufacturing and more importantly binding legal contracts and liabilities within the supply-chain. Additionally, there are national and multinational aspects to the protein food supply.
Today President Trump remarked the White House and Dept of Agriculture are drawing up a plan for the president to invoke the defense production act as a tool to cut through some of the liabilities present within the supply-chain dynamic. Let’s use cattle to explain.
Because beef is a “graded” commodity, there are contracts for purchase within the supply chain. USDA Prime, USDA Choice and USDA Select are three well known grades of beef. However, there are eight grades total: prime, choice, select, standard, commercial, utility, cutter and canner.
Within the total food supply there are contracts for exclusive product purchasing in both the commercial and consumer side of the food supply. Additionally, the commercial side breaks down into ‘food-away-from-home’ (ie. restaurants), and manufactured food.
President Donald Trump delivers remarks from the East Room of the White House on the Paycheck Protection Program, part of coronavirus relief package known as the CARES Act, that is set up to help small businesses continue to operate and pay employees during the economic downturn caused by the COVID-19 pandemic.
UPDATE: Video and Transcript Added
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[Transcript] – THE PRESIDENT: Well, thank you very much everyone. This is a great honor. And I see you have social distance on your mind and that’s a very good thing. Jovita, congratulations. Tremendous job you’re doing.
I want to thank everyone for being at the White House — a very special house, a very special place. No matter where you go in the world, they love the White House. And being here in the East Room of the White House in particular, where so many important functions have taken place over the years.
Earlier today President Trump and members of the COVID-19 task force met with Florida Governor Ron DeSantis at the White House. DeSantis spoke about the actions Florida has taken to help and support the state’s nursing home population.
The approach to protect the vulnerable population by Florida Governor DeSantis contrasts against the approaches taken in New York and New Jersey which were not so effective. Additionally, DeSantis highlights the use of the national guard to assist in testing and mitigation. [Video Below – Transcript to Follow]
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NOTE: The rude journalist in the oval office is Hunter Walker from Yahoo News who constantly brags to his peers about his resistance efforts.
Holy cow, Illinois is asking for a $40 billion bailout with $10 billion targeted to fund their pension liabilities? These blue spenders are nuts.
Treasury Secretary Steven Mnuchin appears on Fox Business to discuss the ongoing financial programs intended to support U.S. workers and small business. About mid-way through the interview Mnuchin sounds quite serious when he says anyone who falsely filed the borrowers certification on the PPP program will be held criminally liable. WATCH:
The U.S. Department of Justice, Attorney General Bill Barr, has issued a memo (pdf here) citing a needed balance between COVID-19 mitigation efforts and U.S. civil rights under the constitution. Notably AG Barr identifies both “religious freedom”, and “undue interference with the national economy” within his memo.
[…] “Many policies that would be unthinkable in regular times have become commonplace in recent weeks, and we do not want to unduly interfere with the important efforts of state and local officials to protect the public. But the Constitution is not suspended in times of crisis. We must therefore be vigilant to ensure its protections are preserved, at the same time that the public is protected” (citation)
Unfortunately, with President Trump effectively communicating the latest information on the federal efforts to mitigate COVID-19, more corporate U.S. resistance media have decided not to carry the live broadcasts from the White House task force briefings.
Today at 5:00pm ET the White House will hold a beating for the media and share the latest mitigation efforts against the coronavirus. The White House is anticipated to deliver new testing guidelines for state and local government. [Livestream Links Below]
White House Livestream Link – RSBN Livestream – CSPAN Livestream Link
It is being reported the San Francisco Bay area will remain in a state of forced lock-down with an extension of the stay-at-home orders throughout May. Considering this is the home of Speaker Nancy Pelosi,… this decision highlights an expectation that the federal government will bail out local and state governments.
We anticipated this type of approach where Blue states & Blue regions will keep their economies closed as long as possible to inflict maximum political damage. Simply, if San Francisco were not confident they will gain a federal bailout they would not be keeping their economic system closed for another entire month.
CALIFORNIA – Public health officials in Alameda, Contra Costa, Marin, San Francisco, San Mateo and Santa Clara counties say they will extend the shelter-in-place orders through May.