Man-o-man, this is some high-stakes poker playing, and it’s the United States economy on the table.   Mitch McConnell is going to put S.3548 The Coronavirus Aid, Relief, and Economic Security Act, or the CARES Act, back on the senate floor at 9:45am ET tomorrow, 15 minutes after the stock market starts collapsing.

[Read Bill Here]

[Link To Tweet]

Sweet Baby Jesus… I can’t remember ever seeing anything like this.  A $20 trillion U.S. economy, and tens-of-millions of American jobs and businesses on the line….  And McConnell is calling Pelosi’s bluff.    P.U.B.L.I.C.L.Y!

Talk about seriously high stakes politics.   Yikes.  McConnell is going to make every democrat senator vote again to close debate and advance the bill; putting them on record for negotiating a deal and then walking away from the deal they assembled.

I would imagine Senator McConnell has talked to President Trump about this….

White House Trade and Manufacturing Policy Advisor Peter Navarro discusses some of the more granular details behind the COVID-19 mitigation strategy.   The policies are designed to counter the economic impacts, and then use a tactical approach toward the challenges in the supply chain for medical supply needs.

Navarro discusses some of the private sector shifts in production and manufacturing to generate medical supply needs as an outcome of the defense production act.

(more…)

Steve Bannon appears on Fox News with Maria Bartiromo to discuss the U.S. response to the coronavirus.   Bannon advocates for a military style shut-down of the U.S. to shut down everything now and get through the crisis as quickly as possible.

(more…)

Treasury Secretary Steven Mnuchin appears on Fox News to discuss the financial legislation (likely vote tomorrow) to support workers and businesses immediately impacted by President Trump’s proactive shut-down of the U.S. economy.

(more…)

Treasury Secretary Steven Mnuchin announces via Twitter the IRS has delayed the deadline for tax filing to July 15th. However, anyone expecting a refund should file asap for obvious reasons.

Former White House Council of Economic Advisers Chairman Kevin Hassett is returning to the administration as a senior economic advisor to President Trump during the COVID-19 response.

Kevin Hassett is very sharp and a happy warrior by disposition.  Hassett was excellent as CEA Chair and no doubt his rejoining the economic team with an advisory position to President Trump will bring a great voice back to the crew.

(more…)

If Mitt Romney and Hillary Clinton had a child, it would be Nikki Haley.   Ms. Haley and her paid staff of political wind-testers, are constantly scanning the horizon for optics and issues that might upend her aspirations to the presidency.  Today she quits the board of Boeing after the likelihood of a government bailout starts to rise….

(Via CNBC) Former U.N. Ambassador Nikki Haley stepped down from Boeing’s board of directors after less than a year because she opposes government aid to help the aircraft manufacturer weather the coronavirus crisis, the company said Thursday.

Boeing earlier this week said it is seeking $60 billion in government aid for itself and its massive supply chain because of the virus. The manufacturer’s suppliers include United Technologies, General Electric, Spirit Aerosystems and dozens of others. The administration hasn’t yet said what Boeing, a top U.S. military contractor could receive.

President Donald Trump this week threw his support behind the manufacturer, saying: “We have to protect Boeing.”

(more…)

We are entering into phase-3 of the supply-chain distribution shortages within the retail food sector.   Phase-1 was immediate impact.  Phase-2 was the spread to the warehouse and distribution.  Phase-3 impacts are further upstream, processing & suppliers.

The current shelf-stock shortages are not soon to reconcile; however, the shortages are still in the regional phase.  Meaning there is a big difference in the availability of products depending on the type of distribution network, and the specific retailers, in your area.

The ‘spider-spread effect’ happens when large metropolitan chains, serving large urban and megalopolis areas (1 million+ residents in 50 mile radius), reach a critical shortage in their supply network; and those residents then drive distances to locate their needs.  This is going on now across the country as regional supply chains try to keep up with demand.

Most consumers are not aware food consumption in the U.S. is now a 50/50 proposition. Approximately 50% of all food was consumed “outside the home” (or food away from home), and 50% of all food consumed was food “inside the home” (grocery shoppers).

(more…)

Treasury Secretary Steven Mnuchin called-in to Maria Bartiromo earlier today to discuss the overall financial approach of the Trump administration to the COVID-19 impacts.

Mnuchin has been working closely with House and Senate political leadership to structure the financial flow needed for particular sectors and workers inside the Main St economy.  The target date for legislation directing the financial relief is early next week.

The underlying economy is strong. The treasury response is targeted to those who need short-term relief. Short-term economic indicators are no longer valid.

(more…)

…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.

(more…)