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(Part II) – Coronavirus as a Global Economic Reset…

…there had to be a point where the value of the Wall St economy surpassed the value of the Main St economy… Part I Here

We now look forward, and consider the question: How would the multinational underwriters, the multinational financial systems, reset all transactional tables (the bookkeeping systems underneath the valuation) if the U.S. stock market was ever forced to re-value economic nationalism over multinational globalism?

To first answer the “how” question, we must visit the “why” question. Why would the multinational financial underwriters want to reset their valuations?

Obviously, the global financial system does not act altruistically. What would motivate the global wealth valuation authority (various market investment indexes) to want, or need, a reset.

The answer to the “why” question might not be as challenging as it appears.

First, there has been a seismic shift in how the world looks at the economic exploitation of multinational systems, or globalism.  See Bernie Sanders?  See those yellow vests in France?  See what happened with the U.K. Brexit referendum?  See the shrinking EU influence?  See the open/public confrontation and push-back against China? See Trump? All examples are consequences of the rise of economic nationalism.

Secondly, the original Wall Street corporate motive (during decades of mergers and acquisitions) to shift product manufacturing to Southeast Asia (ASEAN nations) was driven by a lower cost of overall business, higher profit margins and greed.

As a direct outcome economic wealth was shifted from the U.S. to ASEAN nations, and particularly China. Low wages, low regulation, cheap operational costs, incentives and subsidies from Asia equals cheap TV’s, sneakers, furniture and durable goods.

Even with high fuel prices and overseas shipping costs, there was a big difference between U.S. and ASEAN manufacturing costs.  As hundreds of U.S. Wall Street multinationals chased profits the rust-belt was created.

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President Trump Invokes Defense Production Act – Initiates Executive Order For Health And Medical Resources…

Earlier today President Trump announced he was invoking sections of the Defense Product Act to help mitigate COVID-19 (Chinese Coronavirus) in the U.S.  The act empowers the government with greater authority to control specific sectors of the U.S. economy, and specific industries, needed to respond to national emergency needs.

The three main components of the Defense Production Act include:

♦ Companies are required to accept and prioritize contracts from the government and to prioritize “materials, services, and facilities to promote the national defense or to maximize domestic energy supplies.” While this provision has historically been used to ramp up military production, in the midst of the COVID19 pandemic the act will be used for medical supplies.

♦ The second provision in the act provides financial measures, such as loans, loan guarantees, purchases, and purchase commitments, to speed up the production of materials “needed to support national defense and homeland security procurement requirements.”

♦ The act also addresses voluntary agreements – or what the government says is “an association of private interests, approved by the Government to plan and coordinate actions in support of the national defense.” The proviso permits business competitors to work together to plan and coordinate measures to increase the supply of materials as directed by the U.S. government.

Immediately after invoking the act, President Trump signed an executive order to prioritize Health and Medical resources (masks, respirators, medical equipment).

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President Trump Leads Daily Coronavirus Task Force Briefing – Video

President Trump and Vice-President Mike Pence lead the daily briefing of the coronavirus task force from the White House briefing room. [Video Below – Transcript ADDED]

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[Transcript] –  THE PRESIDENT: Thank you very much. I would like to begin by announcing some important developments in our war against the Chinese virus.

We’ll be invoking the Defense Production Act, just in case we need it. In other words, I think you all know what it is, and it can do a lot of good things if we need it. And we will — we will have it all completed, signing it in just a little while. Right after I’m finished with this conference, I’ll be signing it. It’s prepared to go. So we will be invoking the Defense Production Act.

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U.S. Auto Industry Shuts Down Amid Coronavirus Struggle…

This is a big sector hit to the U.S. economy.  All of the major U.S. auto manufacturers have agreed to shut down all production facilities, through March 30th, in the latest thunder-shock to the economy.

DETROIT – Ford Motor Co., General Motors and Fiat-Chrysler will close their plants due to the coronavirus (COVID-19) outbreak.

Ford said in a statement Wednesday that its U.S., Canadian and Mexican manufacturing facilities will be halted after Thursday evening’s shifts through March 30 to “thoroughly clean and sanitize the company’s plants.”

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The Media Disconnect – White House Press Pool Focused on Political Correctness While Million of Americans Suffer Economic Impacts…

The entire nation is being impacted by a multitude of consequences from coronavirus; millions of Americans concerned about lost work, lost wages and possibly lost jobs; the largest economy in the world at a near standstill; trillions of wealth lost and rippling economic consequences yet to be properly quantified;…. and yet the White House press pool is worried about calling COVID-19 the “Chinese coronavirus”?

Amid all of the seemingly unending and insufferable nonsense from American journalists, this is, yet again, reaching an all time high of stupidity.  WATCH:

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Nuts !

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Tuesday Night Election Results – Florida, Illinois, Arizona (Ohio Cancelled) – Open Discussion…

Tonight Florida, Illinois and Arizona are holding their 2020 democrat presidential primary.  Ohio Governor Mike DeWine cancelled/postponed the Ohio primary due to Wuhan virus fears.

The polls began to close in Florida at 7pm ET/ panhandle polls will be closed in FL at 8pm ET.

Polls also close in in Illinois at 8pm ET, and in Arizona at 10pm ET.

Bernie Sanders is expected to get crushed in Florida as a result of his supportive politics toward Fidel Castro and Cuba, the only question will be the size of the Biden win.  However, Illinois and Arizona might fare better for Bernie depending on turnout.

New York Times Election Results Here

CNN Election Results Here

Politico Election Results Here

President Trump Meets With Tourism Industry to Discuss COVID-19 Issues – Video and Transcript…

Earlier today President Trump met with executives from the U.S. tourism industry to discuss how their operation are impacted by the various COVID-19 mitigation efforts.

Participants included: Roger Dow, President & CEO, Travel Association; Chip Rogers, President & CEO, American Hotel & Lodging Association (AHLA); Jon Bortz, President and CEO, Pebblebrook Hotel Trust and AHLA Chairman; Elie Maalouf, President, The Americas, Intercontinental Hotels Group (IHG); Christopher Nassetta, President & CEO, Hilton; Arne Sorenson, President & CEO, Marriott International; Richard Bates, EVP, Disney; Mark Hoplamazian, President & CEO, Hyatt Hotels Corporation; John Sprouls, Chief Administrative Officer, Universal Parks and Resorts; Patrick Pacious, President and CEO, Choice Hotels International; David Kong, CEO, Best Western Hotels and Resorts; Jim Murren, President & CEO, MGM  [Video and Transcript Below]

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[Transcript] – THE PRESIDENT: Well, thank you very much. We have the tourism industry executives, the biggest anywhere in the world. These are the great ones, and they’re going to say a couple of little words pretty soon, I think. We’ll talk about their company quickly and the number of employees and what’s happened since the Chinese virus came about. And they’ll be discussing that.

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The Retail Supply Chain Has Inverted – Formerly Efficient Operations Now Least Effective – Small Markets Best Supplied…

CTH is spending time on this issue because the food distribution sector is the most important sector in all commerce. Having some familiarity with the supply chain might help people to understand the challenges; and possibly help you locate product.

The Inversion – Big chain markets; those who spent millions developing their own proprietary ‘just-in-time’ distribution networks and automated ordering systems; are currently the least equipped to deal with the level of demand.  Meanwhile smaller chains, or mom-and-pops, who rely on third-party brokered distribution are faster to respond.

Several factors have increased retail market demand for food products and non-perishables.  People stocking up, kids out of school, some panic shopping (example toilet paper) and now curfews/quarantines have people purchasing more for ‘meals prepared at home’.  Add in a level of closed restaurants and the demand on retail food markets is severely stressed.

In major urban areas the larger retailers are unable to keep up with demand.  This is creating an outward spread as people drive further and further distances to find their needs.  Those who travel a distance ultimately stock-up more; thus the outward spider web-cycle is created.  Based on ground reports Atlanta Georgia is a prime example.

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President Trump White House Coronavirus Task Force Briefing – Video and Transcript

President Trump, Vice-President Pence and Treasury Secretary Steven Mnuchin lead the daily coronavirus briefing on COVID-19 mitigation efforts from the White House.

[Video Below – Transcript Added]

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[Transcript] – THE PRESIDENT: Thank you very much, everyone. Thank you. Progress being made. And I appreciate you all joining us.

Last night, the FDA announced groundbreaking new policies to further increase testing very substantially so. All states can now authorize tests developed and used within their borders, in addition to the FDA. So the states are very much involved. They have been involved from the beginning. But we’re stepping it up as much as we can, and the testing procedures are going well.

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President Trump Conference Call – Restaurant Executives…

Earlier today President Trump held a conference call with a who’s-who of executives in the restaurant industry.  One of the key aspects to the call was President Trump asking the CEO’s to continue food service operations despite the dine-in closures.  The reason is simple: the alternative, the retail supermarket industry nationwide, cannot compensate for the closure of restaurants in the total food production supply chain. [Ground Reports]

(WHITE HOUSE) – Today, President Donald J. Trump spoke by telephone with restaurant executives representing hundreds of thousands of hardworking Americans about the response to COVID-19. The executives thanked President Trump and his Administration for the whole-of-government response and for his efforts to ensure the public has the most accurate and up-to-date information.

The President reminded the restaurants that they can help flatten the curve and slow the spread of this virus in communities across the country by encouraging their customers to use drive-thru, pickup, or delivery options.

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