BACKSTORY:

• CFPB Financial Control Schemes
• President Trump appoints Mick Mulvaney as interim director for CFPB
• Elizabeth Warren goes bananas.
• DOJ Office of Legal Counsel agrees with President Trump
• CFPB Internal Legal Counsel Agrees with President Trump

Everything you need to know to understand the Consumer Financial Protection Bureau back-story is contrast against Mick Mulvaney and Leandra English today.   Director Mulvaney goes to the CFPB office to review the CFPB transition guidance, while Leandra English runs to a meeting on capital hill with Senator Chuck Schumer and Senator Elizabeth Warren.
Mr. Mulvaney is focused on the job and tasks at hand. Ms. English is focused on the internal politics within DC. ‘Nuf said.  Pretty obvious where each establishes their priorities.

Last night CFPB employee Leandra English (pictured above) filed a lawsuit to install herself as the acting director of the CFPB.  This action was despite the legal guidance by the department’s own top lawyer Mary McLeod who informed all CFPB employees that President Trump has the legal authority to appoint the interim director of the agency:
(more…)

What’s this? …MORE winning?  …Sheesh.  Well, just add it to the pile in the corner over there, along with all the other winning we haven’t got around to yet.
The internal legal counsel for the Consumer Financial Protection Bureau (CFPB) has just agreed with the White House Office of Legal Counsel that President Trump has full authority to appoint OMB Director Mick Mulvaney as the acting head of the agency.
Oh noes, Princess Moonbat Feathers is gonna have a ‘splodey head in 3…. 2…. 1…

WASHINGTON (Reuters) – The top lawyer for the U.S. Consumer Financial Protection Bureau (CFPB) has concluded that President Donald Trump has the authority to name its acting director, three sources familiar with the matter said on Sunday, rejecting an effort by her former boss at the agency to name his immediate successor.
The office of CFPB General Counsel Mary McLeod has prepared a memo concurring with the opinion of the U.S. Justice Department that Trump has the power to appoint his budget chief, Mick Mulvaney, as temporary leader of the federal watchdog agency, according to the sources, who spoke on condition of anonymity.
One source said the memo would be sent to CFPB staff on Monday.

(more…)

War is ugly.  Political war against the swamp, while accepting their one-sided rules of engagement, is exponential hell.  In order to gain victory, you have to be prepared to advance into the fire at all costs. Andrew Breitbart, Donald Trump and apparently Dinesh D’Souza understand this modern political truth.
In the final analysis this approach is the essential element of ‘Cold Anger’:

The Democrats and UniParty Republicans will cede no ground.  There is only one majority political ideology within Washington DC, and it is based on financial interest. Their rules of engagement are entirely self-serving.  They will fight against any entity, for any reason, on any issue, even reversing their own individual policy positions, if they view that entity as an existential risk to their power structure and decades-long financial constructs.
For those who live within the institutions, nothing is out-of-bounds; therefore, in order to defeat the systemic and institutional rot, we must fight as an insurgent opposition.
(more…)

CTH has been looking, unsuccessfully, for China SME’s who have insight on the DC lobbying angle by Chinese foreign nationals and the hidden story of how the Trump administration might be confronting that aspect.
Gordon Chang briefly touches on that note during a discussion segment on the overall outcome of President Trump’s 12-day visit to Asia.
Apparently, if Chang’s sources are accurate (likely they are), the notification by POTUS Trump toward Chairman Xi Jinping, of the lobbyist warning did take place [Video 02:25].

.
The foreign influence lobbying is a critical element for us domestically in the larger geopolitical strategy.  Chinese nationals pay our congressional representatives millions of dollars to purchase U.S. foreign policy.  CTH is cautiously optimistic this is a key element of Robert Mueller.
(more…)

There’s an extensive back story to this issue: Part I, and Part II, and Part III

(President Trump Tweet Link)

The Director of the Consumer Financial Protection Bureau, Richard Cordray, has resigned. Senator Elizabeth Warren does not want President Trump to appoint an interim replacement.  President Trump has announced OMB Director Mick Mulvaney will be the “acting” head of the agency until he nominates a permanent replacement for senate confirmation. Senator Warren wants to take President Trump to court to stop him filling the interim position.
The U.S. Dept. of Justice, Office of Legal Counsel (OLC), has provided legal guidance (full pdf outline of opinion below), and decided that President Trump clearly has the authority to appoint the acting Director.  Senator Elizabeth Warren is going bananas.
(more…)

Oh boy,  there’s a particular joy when all the lead-up economic data, that naysayer’s claim is simply outliers, leads to predictions that become reality.  Remember when we shared:

…”Hold on to your economic britches peeps – throw dem ju-ju bones out the windows – grab hold of the young-un’s, squeeze em tight and introduce them to their first opportunity to see capitalism unchained; we are in uncharted MAGA territory now. Q4 will be well beyond 3.2% 3.8%… Well Beyond.”…

Allow me the indulgence of setting the stage.  Last week the New York Fed increased the fourth quarter GDP growth estimates to 3.8%. This followed a prior week when they raised that same estimate to 3.2%.   Obviously, much to their chagrin, the underlying economic data was far surpassing the earlier forecasts of the doom club.  {{{CTH snickered}}}
Now, wait for it,… as we review the preliminary results it is important to remember that Consumer Spending represents two-thirds of U.S. GDP.
OK, you ready?….  You sure?….  Well:
(more…)

This image from Sweden speaks so loudly:

Concrete K-Rail Barriers, positioned to stop terrorist attacks by vehicles, dressed up like Christmas decorations around the local holiday markets.  What a ridiculously sad and pathetic visual of everything wrong in Europe.
Amid the anxiety of anticipating the next Jihadist attack, which everyone knows is not if – but rather ‘when’, it would appear joy is somewhat lowered on the scale of relativity.

EUROPE – The Islamic State has issued chilling threat to attack Christmas markets in the Britain, France and Germany in pictures circulated among supporters.

The jihadis have circulated images on messaging apps including one in which a black-clad hooded figure is seen standing over a kneeling Santa Claus with an image of Regent Street in the background.

A message in English, French, and German says ‘Soon on your holidays’ with the clear implication that London can expect a terrorist attack over the holiday season.  (read more)

(more…)

The Consumer Financial Protection Bureau (CFPB) was the brainchild of Senator Elizabeth Warren as an outcome of the Dodd-Frank legislation. With the CFPB Pocahontas tried to set up the head of the agency, the Director, in a manner that that he/she would operate without oversight. Unfortunately, her dictatorial-fiat-design collapsed when challenged in court.  Backstory #1 – Backstory #2
A federal court found the CFPB Director position held too much power and deemed it unconstitutional. The court decision noted that giving the President power to fire the Director would fix the constitutional problem.
However, with the prior court ruling as a backdrop, a second issue for Warren surfaces as an outcome of the current CFPB Director, Richard Cordray, resigning and President Trump appointing an ‘interim’ head for the agency.
Senator Warren, apoplectic at the thought of CFPB critic Mick Mulvaney acting as head of the agency, wants the Deputy Director,  Leandra English, to become Acting Director and points to Warren’s legislative outline as evidence to support her demand. Except it doesn’t…. not even a little bit.

(WARREN LINK)

The language Pocahontas points to in the CFPB construct, points to the Deputy Director filling in during the “absence” or “unavailability” of the Director. The statute clearly does not provide a mechanism when the Director position is “Vacant”.
(more…)

The White House releases the official announcement that OMB Director Mick Mulvaney will head up the Consumer Financial Protection Board until a replacement is confirmed.  As previously discussed – notice the verbiage:

WHITE HOUSE – Today, the President announced that he is designating Director of the Office of Management and Budget (OMB) Mick Mulvaney as Acting Director of the Consumer Financial Protection Bureau (CFPB). The President looks forward to seeing Director Mulvaney take a common sense approach to leading the CFPB’s dedicated staff, an approach that will empower consumers to make their own financial decisions and facilitate investment in our communities. Director Mulvaney will serve as Acting Director until a permanent director is nominated and confirmed.  (link)

(more…)

Go through the archives and you’ll note a strategy unfolding that few, including us, could fully conceptualize when it first appeared.  Way back when candidate Trump first began to put his economic plans into platform outlines the subtle signature was there, but few were paying attention.
In order to reverse three decades of middle-class economic erosion, there were indicators that Trump’s strategy was a radical change in approach.  In essence the strategy was to split the economic policy into two areas and sequence the policy: highly-consumable goods (first) and durable goods (second).
Both product sectors have historically been viewed and approached by economic policy makers using a single financial strategy.  That singular approach gave rise to Wall Street benefiting and Main Street suffering.  Investment-class gained; middle-class suffered.
Trump outlined an approach –albeit vaguely– that was multidimensional.
His policy would first target multinational corporations, using the U.S. Treasury (Mnuchin) to weaken their grip and influence; simultaneously, he would use energy policy to drive down domestic prices in highly-consumable products (fuel, food, energy sector).  These sectors are not measured in fed inflation indexes; however, if lowered, these facets of consumer spending can also increase the amount of disposable income available for workers.
In essence, expand the economy by lowering the aggregate cost of living for the middle-class who live paycheck-to-paycheck.  Use monetary policy, fiscal policy and trade policy), to entice domestic investment and create jobs; and ultimately put upward pressure on wages.
That’s where we are now.
(more…)