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.

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It’s tough to see happy warrior Kevin Hassett without a smile.  However, Hassett is a very smart straight-shooter brought back into the administration to specifically advise and assist President Trump on economic plans and strategies to exit the COVID-19 collapse.

Hassett held an impromptu press availability to discuss the current status of our economic situation and took questions about the budget shortfalls amid local and state government. Lets finish battling through the crisis so we can get quickly to the rebound.

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White House manufacturing and trade adviser Peter Navarro appears on ‘Sunday Morning Futures’ with Maria Bartiromo to discuss the activity of China during the Wuhan Virus. Navarro brings up a good point that prior to the pandemic outbreak Beijing purchased all of the global PPE, gained control of the global supply, and is now profiteering from the problem they created.

Navarro and Pompeo (audio clip) point out that China’s 5G Hauwei endeavor is now likely to collapse as people around the world realize rebuke the dangerous and manipulative Chinese communists.

Additionally, Navarro gives examples of how the Defense Production Act (DPA) is being used to make rapid changes to manufacturing processes and generate industrial health products in record time.

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National Economic Council Director Larry Kudlow appears on Fox News to discuss states and counties using the White House three-phase plan to reopen the economy.

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The U.S. economy will reopen sooner rather than later specifically because of non-discussed issues in the total U.S. food supply chain.  While government officials have to be very careful in public comments, AG Secretary Sonny Perdue hinted toward the issue today during his remarks at the coronavirus task force briefing.  WATCH:

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The issue is slightly complex; and with two months of manufactured food supply-chain stress; it is now becoming increasingly important to re-open consumer access to the fresh-food side of the aggregate supply chain (ie. restaurants, cafe’s, and food away from home).

Most Americans were not aware food consumption in the U.S. was a 55/45 proposition. Approximately 55% of all food was consumed “outside the home” (or food away from home), and 45% of all food consumed was food “inside the home” (grocery shoppers).

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White House Manufacturing Trade Advisor Peter Navarro is also leading the execution of the Defense Production Act to rally American resources in combating the Wuhan Virus. In this interview Navarro discusses the scale of Beijing’s influence over the World Health Organization as a propaganda operation.

Interestingly Navarro notes the Chinese delegation visit in January 2020 and the issues of human-to-human virus spread. CTH has long suspected U.S. intelligence on the Wuhan virus was behind Trump’s proactive health measures in November 2019. It would make sense for POTUS to have a heart-health evaluation prior to beginning a prophylactic regimen [hint hydroxychloriquine] and that might explain a particular advocacy emphasis later on. Just sayin’.

Additionally, Navarro again outlines the importance of returning our critical U.S. manufacturing back to the United States. Honeywell now making masks and GM making ventilators.  Peter Navarro is a patriot; in the right place for this moment in history.

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National Economic Council Director Larry Kudlow appears on Fox Business to discuss the administration plans to re-open the U.S. economy.  Something is going to need to happen prior to May 1st, or the long-term economic challenge is going to be much more difficult.

Kudlow again notes a ‘bring back manufacturing’ proposal with 100% tax deduction (expensing) for U.S. manufacturers to relocate their manufacturing supply chains out of China and back to the U.S.  The Beijing lobbyists would go bananas.

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Though the U.S. and Canada are not part of the “OPEC Plus” group, President Trump has  been leading negotiations between Saudi Arabia and Russia to broker a deal and stop their price war.  Today President Trump announces an agreement between the major petroleum exporting countries to curb oil production by approximately 10 million barrels per day:

Additionally, there was a loggerhead within the negotiations as Mexico did not want to cut their production by the requested amount of 400,000 barrels daily.  Mexico relies on oil as a large part of their economy. AMLO stated his economy could not withstand such a significant drop in state revenue.  Economic security is, after all, national security.

President Trump broke the OPEC+ stalemate by agreeing to decrease U.S. production by 300k/barrels allowing Mexico to drop a more manageable 100k/barrels.  Trump and AMLO reached an undisclosed agreement where Mexico will reimburse the U.S. later on.

I suspect the “reimbursement” will be more, well, strategically geopolitical than financial.  [*nudge-nudge*, *wink-wink*, *say-no-more/say-no-more*]  President Trump has an uncanny knack of collecting leverage for later, more strategic, purposes.  Just sayin’.

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With an increased awareness of how some U.S. politicians appear to be reacting to the COVID-19 challenges; and with a new American perspective toward the way media outlets, some businesses and many politicians appear to be influenced by China; it’s worth revisiting a recent speech by Secretary of State Pompeo that might have been overlooked.

Pompeo’s remarks were made to the National Governors Association (NGA) Feb 8, 2020; and there’s an interesting segment where Pompeo reveals his awareness of a list of U.S. governors compiled by China’s communist party; and their alignment with China’s interests. A transcript of the key excerpt from his speech is provided. WATCH:

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[Transcript at 01:45] […] “Last year, I received an invitation to an event that promised to be, quote, “an occasion for exclusive deal-making.” It said, quote, “the opportunities for mutually beneficial economic development between China and our individual states [are] tremendous,” end of quote.”

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White House trade and manufacturing advisor, and current lead policy expert on deployment of the Defense Production Act, Peter Navarro, appears on Fox News to discuss the ongoing mitigation efforts to protect Americans from the Wuhan Virus.

Wolverine Navarro discusses the importance of hydroxychloroquine as a treatment and preventative measure against the virus.  While most studies are ongoing, there is increasing anecdotal evidence showing considerable benefit.  Factually, many doctors on the front-line of treatment are personally using hydroxychloroquine as a preventative med.

Mr. Navarro discusses the common sense importance of bringing back critical manufacturing to the U.S. so we can have control over our own medical supply-chain; and the considerations within the White House for reopening our economy. WATCH:

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