The lack of independent control over critical healthcare products is highlighting exactly why Donald J Trump has been demanding U.S. manufacturing firms return production to this nation for years.  White House trade advisor Peter Navarro drove home the point yesterday:

[Transcript] – Q: Mr. Navarro, what’s the status of the “Buy American” executive order?

MR. NAVARRO: “One of the — one of the things that this crisis has taught us, sir, is that we are dangerously over-dependent on a global supply chain for our medicines, like penicillin; our medical supplies, like masks; and our medical equipment, like ventilators.

We have — right now as we speak, over 50 countries have already imposed some forms of export restrictions in their country against the rest of the world. And what we’ve — what we’re learning from that is that no matter how many treaties you have, no matter how many alliances, no matter how many phone calls, when push comes to shove you run the risk, as a nation, of not having what you need.”

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Treasury Secretary Steven Mnuchin provided additional information at the white house briefing today including an important new point:  Social Security recipients will not need to file an income tax return to see a direct deposit.

After instruction from President Trump all SSI recipients will participate in the economic relief programs without taking further action.  WATCH:

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The always political Senate Minority Leader Chuck Schumer sent a letter to President Trump today saying it was “long past the time” to name a senior military officer to lead the supply-chain effort.

Senator Schumer was attempting to construct a political narrative around the administration not taking action to secure U.S. supply needs combating COVID-19.

The letter was/is ridiculous; and built upon an entirely false premise; because Admiral John Polowczyk is already in that supply-chain procurement and distribution position working closely with Peter Navarro after the invocation of the Defense Production Act.

Replying to the ridiculous Schumer letter, President Trump calls out his stupidity:

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I think almost everyone knows the intent and purpose behind this effort…

WASHINGTON (Reuters) – U.S. House Speaker Nancy Pelosi said Wednesday she hopes “vote by mail” provisions can be part of the next coronavirus response plan being put together by House Democrats.

Speaking in a conference call, Pelosi said at least $2 billion was needed to enable voting by mail, in order to give citizens a safe way to vote during the coronavirus pandemic. She said Democrats had gotten just $400 million for that purpose in a recent bill. (Link)

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Earlier today President Trump re-emphasized a point he has made previously; with near-zero interest rates, now is the time to consider a $2 trillion direct infrastructure program to rebuild U.S. roads, highways, airports, bridges, tunnels and technology networks.

The U.S. dollar is in high demand as countries and international investors seek the security of U.S. bonds.  As a result, the value of the dollar is high – which has the negative impact of making our exported products more expensive.

However, this investment demand scenario provides an opportunity to sell bonds, take investment dollars with near-zero interest, and then use the funding to work on internal economic expansion offsetting the challenges of a high dollar value on exports.

President Trump clarified at his press conference today the objective of an infrastructure bill would be based on real, substantive improvements; and he would not support any investment toward the ridiculous schemes within the green new deal.

America First !

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After the DOJ Offfice of Inspector General (OIG), Michael Horowitz, presented his December 2019 findings of the FISA application used against U.S person Carter Page, the gross deficiencies and intentional fraud were so extensive the IG said he was going to review a sample of FISA applications to identify if the fraud and abuse was widespread.

The OIG began reviewing FISA applications from eight field offices (the proverbial “rank and file”).  The OIG selected 29 FISA applications from those field offices over the period of October 2014 to September 2019.  Additionally, every field office and the DOJ-NSD generate internal “Accuracy Reviews”, or self-checks on FISA applications; so the OIG inspected 42 of the accuracy review FISA files to determine if they were compliant.

The results were so bad the IG produced an interim memorandum to the DOJ and FBI [pdf link here].  Within the 17-page-memo the IG notifies Attorney General Bill Barr and FBI Director Chris Wray that all of the claimed FISA processes, in every field office, are grossly deficient, and in most cases there is zero compliance with FISA standards.  The IG memorandum is presented before the IG even looks at the specifics of the non-compliance.

Below is the report/memorandum.  Additionally I am summarizing the stunning top-lines identified by the IG memo:

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Treasury Secretary Steven Mnuchin appears on Fox News to discuss the latest developments in the battle against COVID-19 and how the coronavirus economic relief package will roll out. Unfortunately the always insufferable Wallace wants to waste time discussing the politics of the administration effort and not communicate important details to American businesses/individuals about what financial relief efforts are available.

Smartly Secretary Mnuchin outlines the process. The Treasury Department has stood up a system inside the Small Business Administration that cuts through much of the bureaucracy. By using FDIC lenders (local banks) as the point of contact for small businesses and S-corps Treasury can backstop the process. [SEE BELOW]

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The local business (or S-corp) takes their payroll and yearly expense documents to their local bank where they already have a relationship. As long as the bank is in the FDIC network; and because the emergency funds are distributed based on a good faith relationship; the bank gives the business or individual immediate access to funds; the bank deposits in the business account. The FDIC guarantees the lender against any risk.

If the business does not continue payroll for the employees, the funds are considered a loan that must be repaid. However, if the business retains their employees (continues to keep current payroll); or -if needed- rehires any recent lay-offs using the funds provided; then the emergency loan becomes a grant the business will not have to repay. The system should be in place by this Friday.

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White House Coordinator for the Defense Production Act, Peter Navarro, appears on Fox News to discuss how U.S. manufacturers are shifting their production lines to generate products needed to combat coronavirus.

GM CEO Mary Barra appears to have found a spark under her corporate butt after President Trump invoked his power under the DPA to support a greater sense of urgency.

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Earlier today President Trump signed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) in the oval office.  [Video and Transcript Below]

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[Transcript] – THE PRESIDENT: Well, thank you all very much. This is a very important day. I’ll sign the single-biggest economic relief package in American history and, I must say, or any other package, by the way. It’s twice as large as any relief ever signed. It’s $2.2 billion, but it actually goes up to 6.2 — potentially — billion dollars — trillion dollars. So you’re talking about 6.2 trillion-dollar bill. Nothing like that. And this will deliver urgently needed relief to our nation’s families, workers, and businesses. And that’s what this is all about.

And it got a 96 to nothing. And, I don’t know, what was the number in Congress?

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U.S. Treasury Secretary Steven Mnuchin calls-in to Maria Bartiromo to discuss some of the details within the coronavirus relief bill, including the ‘when’ and ‘how’ funds will be distributed.

On the business side Secretary Mnuchin is standing up a new funding mechanism for small businesses within the Small Business Administration (SBA).  The treasury is using the architecture of the ¹FDIC to be the point of contact for businesses who need short-term bridge funds to help carry them.  On the worker side the direct payments to middle-class workers should arrive in two to three weeks.  Excellent Interview:

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¹That is really smart.  All FDIC insured lenders can operate as point of contact lenders for small businesses that need emergency funding.  That means instead of navigating the matrix of big government, a business owner can just go to their local bank and get the funds.  The FDIC, already in a relationship with the bank, back-stops the funding while treasury underwrites the lending (a loan without payback).  Brilliant approach.

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