In the final hours prior to the healthcare debacle, the billionaire Koch Brothers sent a warning to the House Freedom Caucus that they’d better hold the line and kill the ObamaCare repeal or replacement bill, or else.

…”The advocacy groups helmed by Charles and David Koch have unveiled a new pool of money for advertisements, field programs and mailings that would exclude those who vote for the health care bill they oppose on Thursday. The effort, which they described as worth millions of dollars, is an explicit warning to on-the-fence Republicans from one of the most influential players in electoral politics not to cross them”… (more).

Weeks earlier the Billionaire authors (special interests) behind the ObamaCare repeal and replacement, Tom Donohue U.S. CoC et al., warned Speaker Ryan they expected the boundaries established years earlier to be retained.
Two sets of billionaire interests representing: ‘who-pays-the-insurance-premium‘ within the Healthcare issue.
It’s Paul Ryan’s fault, “remove him” some say.  No, it’s the House Freedom Caucus. “Grab the tar and feathers”, others say….
Odd, no?
Odd, because in the aftermath of the fiasco all of the blame-centric attention is focused on Speaker Paul Ryan and/or the House Freedom Caucus – meanwhile the billionaires garner nary a critical side-eye?
Perhaps it’s just too disconcerting of a paradigm shift for the average voter to ask?

Why are two billionaires Charles and David Koch allowed to threaten standing members of congress who are collectively at least supposed to represent the interests of approximately 28 million voters?

Why is Tom Donohue (U.S. Chamber of Commerce, President) allowed to threaten the Speaker of the House of Representatives, and author legislation affecting 300+ million?

No-one seems to ask those questions.
(more…)

A series of recent headline articles about traditional economic analysts, government and private, perplexed by financial and consumer trends – highlights the disconnect inherent amid those who cannot reset their frame of economic reference.
For 30+ years U.S. economic political policy has been driven by Wall Street interests. STOP. Main Street, the middle-class and the American worker have suffered. STOP. The successful election of Donald Trump, and the execution of his “main street” economic policy agenda, has sledgehammered the prior economic machine into a full seizure an halt. FULL STOP.

(WSJ Article Link)

It was Albert Einstein who aptly stated:

“The significant problems we have cannot be solved at the same level of thinking with which we created them.”

The same basic principle applies to those who are trying to understand and evaluate current economic activity yet failing to disengage themselves from their historic economic frames of reference. (more…)

President Trump’s U.S. trade policy of “America First”, free but FAIR trade, came to the forefront in Germany as Treasury Secretary Steve Mnuchin subtly yet firmly pushed back against language that affirmed globalism and multilateral trade.
According to the Washington Post German officials urged Treasury Secretary Steve Mnuchin to agree to their customary modern free trade language in the G20’s joint statement.
However, the U.S. Treasury Secretary refused their request and instead urged adoption of more general wording allowing each nation to make their own determinations of what constitutes “free and fair trade” with their own best interests in mind.
This approach is the basis for one-on-one bilateral trade.  It is also the starting point toward negotiating exceptional trade deals by providing leverage which allows President Trump, Secretary Ross and Trade Rep Lighthizer to frame proposals (by competing nations) against each other.  By holding firm to the basic trade outlook Secretary Mnuchin is setting the table for the U.S. trade team to renegotiate everything.
The disconnect from the traditional economic group-think of the G20 finance ministers is a direct break from the past two decades.  This central approach reflects the baseline change in ongoing U.S. trade policy.  It would appear President Trump and his economic team are more concerned about the interests of American workers than foreign nationals. Go figure.
Secretary Mnuchin suggested adding more general language committing to “strengthen the contribution of trade.”   A version of that sentence was included in the statement, despite criticisms from some G20 finance ministers that it was pointless.
(more…)

OMB Director Mick Mulvaney attends the daily White House press briefing and fields questions about the President Trump ‘America-First’ budget.
Director Mulvaney does an exceptional job explaining the larger budgetary issues, priorities and squashing some of the more ridiculous media narratives du jour.

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Regarding the non-discretionary side.  I would remind all:

Trump Economics – […] As the wage rate increases, and as the economy expands, the governmental dependency model is reshaped and simultaneously receipts to the U.S. treasury improve.
More money into the U.S Treasury and less dependence on welfare programs has a combined exponential impact. You gain a dollar, and have no need to spend a dollar. That is how the SSI and safety net programs are saved under President Trump.
When you elevate your economic thinking you begin to see that all of the “entitlements” or expenditures become more affordable with an economy that is fully functional.
As the GDP of the U.S. expands, so too does our ability to meet the growing need of the retiring U.S. worker. We stop thinking about how to best divide a limited economic pie, and begin thinking about how many more economic pies we can create. (link)

(more…)

It’s really interesting to read the financial presentation of Reuters in their article outlining the Fed, Chair Janet Yellen, decision to raise interest rates a quarter point (.25).  Keep in mind that Reuters traditionally slants left (globally) on all economic presentations.
Those Treepers who have followed our economic analysis will note the disparity between Yellen’s justification and the inconsequential impact therein.   The Stock Market never even flinched today.  Part of the reason is the disconnected (traditional) view of economics within the current Yellen justifications.  It ain’t just us who sees this “new dimension“.

Emphasis in citations are all mine.

(Reuters) The U.S. Federal Reserve raised interest rates on Wednesday for the second time in three months, a move spurred by steady economic growth, strong job gains and confidence that inflation is rising to the central bank’s target.
The decision to lift the target overnight interest rate by 25 basis points to a range of 0.75 percent to 1.00 percent marked one of the Fed’s most convincing steps yet in the effort to return monetary policy to a more normal footing.

{define “normal”}
(more…)

For those who are economic and trade policy junkies, President Trump’s key pick for U.S. Trade Representative, Robert Lighthizer, testified today at his Senate Confirmation Hearing.  To skip the legislative posturing {gag} forward the video to 33:00:

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Mr. Lighthizer, 69, worked for decades as a trade lawyer, representing clients including U.S. Steel Corp.  Historically, he has been critical of U.S. officials who supported China’s entry into the World Trade Organization in 2001, and argued the move worsened America’s trade deficit and hollowed out our manufacturing sector.
Two decades of actual, and quantifiable, results later shows Lighthizer was absolutely 100% correct in his criticisms and predictions.  Ultimately this is why the Globalists within the Democrat machine want to keep Lighthizer out of office.  Mr. Lighthizer will forget more about trade deals than the next closest person could ever know. (more…)

Earlier today President Trump met with his cabinet members and outlined the administrations’ expectation they immediately conduct a wholesale review of each department in order to lower costs, shrink the size of their departments and utilize their leadership and executive skills to remove cost redundancy with extreme urgency.

To accomplish this goal, President Trump signed an Executive Order initiating an immediate reorganization of the executive branch –SEE HERE–   Including the elimination of “unnecessary agencies” as identified in the review.

Section 1.  Purpose.  This order is intended to improve the efficiency, effectiveness, and accountability of the executive branch by directing the Director of the Office of Management and Budget (Director) to propose a plan to reorganize governmental functions and eliminate unnecessary agencies (as defined in section 551(1) of title 5, United States Code), components of agencies, and agency programs.

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[Transcript] 3:07 P.M. EDT – THE PRESIDENT:  Hello, everybody.  I’m proud to welcome everyone to our first official Cabinet meeting. (more…)

Secretary Wilbur “wolverine” Ross, aka Wilburine, discusses his perspective on trade issues, and enforcement.    Gotta love Wilburine’s magnanimous graciousness as he explains the “goodwill gesture” extended recently to Mexico.  {LOL} Wilburine also hits at Trade with Japan being utilized as offsetting leverage with China. [Explains golf with Abe]

(more…)

Last night President Trump had a lengthy dinner and conversation with Secretary of State Rex Tillerson in advance of several upcoming foreign emissary visits to the White House, and T-Rex’s strategic trip to Asia.
Today President Trump took Secretary Kelly (DHS), Secretary Ross (Commerce), Secretary Mnuchin (Treasury), Secretary Shulkin (VA), together with their spouses to Trump National Golf Club in Virginia.
Accompanying the cabinet group was key staff: Press Secretary Sean Spicer, Senior Adviser Steve Bannon, and Chief of Staff Reince Priebus.

Clockwise from President Trump: Commerce Secretary Wilbur Ross and Hilary Ross, Treasury Secretary Steve Mnuchin and Louise Linton (engaged), Karen Kelly and DHS Secretary John Kelly, White House Chief of Staff Reince Priebus, Senior Adviser Steve Bannon, Press Secretary Sean Spicer, Merle Bari Shulkin and Veterans Affairs Secretary David Shulkin.

This type of exit from DC is really smart for multiple reasons.  It might be a little challenging for the convoy to drive 35 minutes, but it allows the cabinet team to synergize in a more relaxed environment with introductions and fellowship amid the spouses.
Additionally, it provides a fully private venue, with full pre-arrival security controlled by Team Trump (ie. no ears); and an escape from the toxic fumes which perpetually emanate from the DC Swamp.
(more…)

You can tell who holds the leverage by the nerves and twitches.  Mexico says they would prefer trilateral trade talks including both Canada and the U.S.; Mexico also wants the talks trade talks to begin ASAP.
Secretary “Wolverine” Ross says bilateral is preferred and there’s no immediate hurry as he intends to notify congress over the next few weeks.  {spit}
Ok, well, he really didn’t spit, but still.  This is exciting stuff.  By mid-summer we shall feel like kids peeking through the fence holes at the O.K. Corral….

(Via CNBC) Commerce Secretary Wilbur Ross said Friday he hopes to start the formal process of renegotiating the North American Free Trade Agreement in coming weeks.
Under U.S. law, the government must tell Congress 90 days before it signs any new trade agreement. Ross said he wants to take the step of notifying lawmakers “sometime in the next couple of weeks.”
“We are now in the very early stages” of having the talks to change NAFTA, he said in a joint press conference with Ildefonso Guajardo Villarreal, Mexico’s economic minister.
(more…)