President Trump’s economic and foreign policy agenda is jaw-dropping in scale, scope and consequence. There are multiple simultaneous aspects to each policy objective; they have been outlined for a long time even before the election victory in November ’16.
If you get too far into the weeds the larger picture can be lost. CTH objective is to continue pointing focus toward the larger horizon, and then at specific inflection points to dive into the topic and explain how each moment is connected to the larger strategy.
Today is a big news day where action on multiple policy fronts becomes visible. Here’s an interview with Treasury Secretary Steven Mnuchin which notes some of the critical financial angles to economic policy.
An important reference here is the earlier understanding of how then ‘candidate Trump’ personally put a platform plank of a Modern 21st Century Glass-Stegall banking reform into his economic policy agenda, and why it is important.
Congressional negotiators have reached an agreement on a gap budget to operate the federal government through September 30th, the end of fiscal year 2017.
According to some summary information the bridge spending bill is $1.070 trillion for the remaining five months of fiscal year 2017.
The budget allows for $1.5 billion for border security, but does not direct funds specifically for the U.S. Mexico border wall. Additionally the budget provides $15 billion for military spending. The National Institutes of Health will gain $2 billion toward medical research and community development grants, and extends health insurance benefits for coal miners.
The catchall spending bill was required because there is no annual budget in place and congress has not operated with a federal budget since fiscal year 2008. President Trump has proposed a fiscal year 2018 budget and congress will be debating that spending proposal over the summer. Fiscal Year 2018 begins October 1st.
There are many new commentators at CTH, and even more new people taking notice of politics for perhaps the first time in their lives. There is also some confusion noticed between two distinct groups who appear to be talking above and around each other. Two groups trying to communicate from two entirely divergent sets of understanding.
Perhaps it is valuable to reset the larger frames of reference and provide clarity.
Many, heck, most people think when they vote for a federal politician -a representative- they are voting for a person who will go to Washington DC and write or enact legislation. This is the old-fashioned “schoolhouse rock” perspective based on decades past.
There is not a single congress person who writes legislation or laws.
In 2017 not a single member of the House of Representatives or Senator writes a law, or puts pen to paper to write out a legislative construct. This simply doesn’t happen.
Over the past several decades a system of constructing legislation has taken over Washington DC that more resembles a business operation than a legislative body. Here’s how it works.
In conjunction with the Trump administration releasing a tax reform outline, White House OMB Director Mick Mulvaney gives an interview to PBS to discuss the president’s goal of driving economic growth.
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Contrary to our initial reservations, Mick Mulvaney continues to be a considerable asset to the administration in communicating “big concepts” into portions that are easily digestible and understandable. Transferring big issues to easier points of comprehension is tough, and Mulvaney does a surprisingly good job.
Having spent over 30 years deep in the weeds on the actuarial side of trade and economics, I can guarantee you there’s a generational need to completely reset all frames of reference when it comes to imports, exports, and U.S. trade principles in general.
It is no longer worthwhile even beginning a conversation around the arcane concept of “free trade”, especially when discussing commodities and agricultural trade. The “free market” was structurally disassembled years ago when multinational corporations began using the business end of agriculture to create investment and global profit via Wall Street.
The BIG AGRICULTURE legislative lobbying groups are funded -much like the U.S. CoC- with multinational corporations and multinational investment banks. Agricultural prices, formerly referenced on basic supply and demand principles have been bastardized through global purchases, and contracts therein, of U.S. farm products.
Simple question to understand the dynamic: “If there is such a U.S. glut of raw milk, then why has the 10-year price of milk skyrocketed”? Within the answer to that question you realize the product is not domestic. It is controlled by multinationals, exported under controlled contract, and the domestic price (you pay) driven by global trade not domestic production/consumption (supply and demand).
The inverse (import pricing) is also true. We’ve been getting screwed by the multinational interests of global trade for decades. This is NOT ‘free trade’. The BIG CLUB owns the process (inputs and outcomes) and manipulates the market in their interests, not yours. There simply is no “free market”.
[TRANSCRIPT] – 3:14 P.M. EDT – THE PRESIDENT: Busy day. They had a very busy day — had a good day. We’re doing well, very well. Things are turning around. I know they’re turning around for you folks, so I just want to welcome you very much to the White House — special place — America’s farmers and ranchers.
I especially want to congratulate Secretary — now I can say, Secretary Sonny Perdue, who was just sworn in as the Secretary of Agriculture — (applause) — sworn in by Justice Thomas. And it was a beautiful ceremony, and we’re going to celebrate a little bit later, and that’s great. We’re very happy. And you had a good vote too.
A newly empowered Chris Wallace takes the big government Fox Media position and begins arguing with OMB Director Mick Mulvaney. Interested observers will note Wallace defends the U.S. CoC lobbying position around the budget, health care, the border wall, the imminent risk of government shutdown, Trump’s “first 100 days”, necessary tax cuts, cuts to environmental protection etc.
It can be frustrating to watch because Chris Wallace is arguing the exact positions of Tom Donohue, the U.S. CoC and the K-Street swamp’s corporatist lobbyists.
Office of Management and Budget Director Mick Mulvaney appears on Bloomberg News to discuss the seismic, epic, thundershock confrontational clash that is about to take place between the Trump administration and the DC UniParty.
There are no adjectives capable of describing the scope and immeasurable scale of the battle that is about to transpire between the White House and the Democrat/Republican UniParty.
MONEY is where every entity within the full-swamp goes nuclear against President Trump and the administration. Despite all prior discussions toward this end, it is doubtful that more than one-in-a-million people can fully grasp the dynamic at play.
Because the procedural wonk is so inherently riddled with ten thousand tentacles of political schematics, I will defray the wonk-speak until after the video.
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If you are interested in deep political weeds, keep reading. However, if you have blood pressure issues or are concerned about your physical or mental health, STOP HERE and go enjoy life. Believe me.
Attorney General Jeff Sessions and DHS Secretary John Kelly visited the Southern border today and paused for an interview with Martha MacCallum:
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Almost simultaneously, OMB Director Mick Mulvaney gave an interview to the Associated Press where he outlines the White House priorities for the upcoming ‘bridge budget’ bill. The short-term budget (May through Sept 30th) is needed because congress never passed a budget from 2008 through 2017, and a continuing resolution spending bill expires on April 30th.
There are many people rightly concerned about legislative issues seemingly stuck in the mud. However, what many of those same people seem to forget is the basic reality of President Trump’s America-First agenda being opposed by professional republicans even more than it is opposed by professional Democrats. DC is a UniParty.
Republican and Democrat political leadership, the UniParty writ large, have been paid to protect the legislative priorities of the multi-billion lobbying group known as K-Street.
The fallacy of false choice lies behind the concept of controlled opposition.
Prior to Donald Trump there was only one political party in DC, the Uniparty. President Trump represents the alternative; the second party.
For almost five years we have been pointing out the construct. The UniParty have three unwavering primary objectives as purchased by the lobbying groups: 1) Retention of Obamacare; 2) Budgetary spending to retain growth of government; and 3) comprehensive immigration reform to include amnesty.
These three primary legislative issues are not up for debate, modification or discussion. The legislative outcomes have been purchased, multi-million-dollar investments made, and the interests behind the legislative constructs will not allow any elimination or concession.
The issue we historically held with Mick ‘Cantalopes’ Mulvaney, was his direct association with Speaker Ryan when it comes to tax/budget plans. Thankfully, so far, Mulvaney has outperformed expectations and our fears have not been seen in Trump policy. We are cautiously optimistic.
One AP article disingenuously previously reported the White House was moving away from the initial campaign tax reform proposal. That outline was pure gas-lighting. The central issue of tax plan disparity centers around import tax tariffs and various alternative proposals.
House Speaker Paul Ryan is all-in with his “Border Adjustment Tax”, it is part of his larger ‘Better Way’ tax agenda. Apparently, according to The Hill, Mulvaney is not in alignment with Ryan. Good. The bottom line is Ryan’s plan is Tom Donohue’s plan. Ryan’s “Better Way” is the construct of the U.S. Chamber of Commerce.
President Trump is not in line with the complex Border Adjustment Tax nonsense. We’ll have to wait and see how this shakes out in the weeks ahead.
President Trump’s economic and foreign policy agenda is jaw-dropping in scale, scope and consequence. There are multiple simultaneous aspects to each policy objective; they have been outlined for a long time even before the election victory in November ’16.
